FirstClose Plans to Accelerate Growth with $35 Million Investment from Lateral | Business
AUSTIN, Texas–(BUSINESS WIRE)–May 17, 2022–
FirstClose, Inc., a leading fintech provider of data and workflow solutions for mortgage and real estate lenders nationwide, has closed a $35 million investment from the capital firm of Lateral Investment Management to accelerate its growth products and strategies.
FirstClose provides underwriting workflow automation technology, point-of-sale software and data services for the US home equity and mortgage markets. FirstClose will use the funds to expand its growing financial services footprint to leverage real estate data intelligence, industry-leading partners and breakthrough technology to enable lenders to compete and close consumer loans like no other industry solution.
“FirstClose is thrilled to announce this next step in our company’s journey,” said Tedd Smith, co-founder and CEO of FirstClose. “Our mission has always been to improve the way banks and credit unions serve consumers by accelerating loan closing times, increasing loan volumes and reducing costs. This year, as interest rates continue to rise and home equity loan volumes soar, this funding will allow us to continue to innovate faster and deliver a superior customer experience, while delivering end-to-end solutions that are in high demand in today’s ever-evolving lending industry. environment.”
Soaring home prices have made home loan products a clear option for lenders looking to diversify their loan portfolios while creating new revenue streams. The increase in mortgage rates since the beginning of the year has led to a significant increase in additional demand for home equity lines of credit (HELOCs) and other home equity loan products. FirstClose’s new funding is the first institutional investment round in the self-funded company since its inception in 2000.
“Lateral is thrilled to partner with the FirstClose team as it accelerates its growth,” said Stuart Barden, managing director of Lateral Investment Management, a growth capital investment firm based in San Mateo, Calif. . “We believe FirstClose has a critical role to play in streamlining origination, underwriting and closing processes in the $200 billion consumer home loan market.”
Based in Austin, TX, FirstClose provides solutions that dramatically reduce HELOC and mortgage closing times for more than 400 banks and credit unions. Lenders using the FirstClose EquityIQ solution experienced a 35% increase in online applications, a 25% increase in calls, and a 77% reduction in closing time from application to funding. The company has strategic partnerships with MeridianLink and other industry-leading LOS companies to integrate its workflow and data automation solutions into their platforms.
“We want to continue to deliver more value to our customers. Demanding a simple and easy way to get instant feedback on home value, available home equity, and instant loan decision when applying for a HELOC has become a business imperative,” said Tim Smith, co-founder and chief revenue officer of FirstClose. . “We are expanding our sales and customer success teams to serve more customers in the home loan market. By partnering with Lateral, we have found a team that has the skills and experience to support our growth, both organically and through acquisition.
FirstClose recently expanded the leadership team to add Pat Carney as Chief Technology Officer and Kathy Mantych as Senior Vice President of Sales. Carney has over 20 years of industry experience formulating strategies and developing innovative products for the real estate and securities industries, including serving as Chief Innovation Officer and Senior Vice President of strategic partnerships at ClosingCorp. Mantych has been a veteran sales leader in the mortgage banking and financial services industries.
Founded in 2000 and based in Austin, Texas, FirstClose provides technology solutions to HELOCs and mortgage lenders nationwide. The company’s mission is to increase profitability and reduce costs for mortgage lenders. FirstClose makes this possible by offering systems and relationships that allow lenders to more effectively assist lender’s borrowers, reduce closing costs, and ultimately shorten times to close.
For more information, visit https://firstclose.com/.
About Managing Lateral Investments
Lateral Investment Management is a private investment firm focused on partnering with lower middle market companies facing transformational growth. Lateral provides “institutional first” growth capital ranging from $5 million to $50 million as well as value-added assistance to established companies that can be leaders in fundamental sectors such as manufacturing, business services and infrastructure that is at the intersection of technology and disruptive change. Based in San Mateo, Calif., Lateral believes that profitable and sustainable businesses create a wealth of opportunity for everyone. Lateral embraces the mission of companies that create high-quality jobs, protect the earth, and solve humanity’s problems.
For more information, visit https://lateralim.com/.
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KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: FINANCIAL DATA MANAGEMENT PROFESSIONAL SERVICES SOFTWARE TECHNOLOGY
SOURCE: Lateral Investment Management
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PUBLISHED: 05/17/2022 12:49 PM / DISK: 05/17/2022 12:49 PM