Roostify has closed a Series A investment round led by Texas-based financial services company USAA, the San Francisco-based automated mortgage transaction platform company announced Thursday. Series A is the name for a company’s first attempt at venture capital financing.
Besides USAA, other participants included two unnamed Tier 1 banks, as well as San Francisco-based Colchis Capital, a boutique alternative investment management company.
Roostify allows lenders to submit their loan documents electronically and stay informed on the status of their application.
“Lenders are recognizing the need to start experimenting with different delivery models,” chief executive Rajesh Bhat told National Mortgage News last year, when he projected growth in the consumer-direct channel.
With the new funds, the company will expand its technology and create partnerships with more lenders, he said in the news release.
“USAA looks to invest in companies that offer innovations that could help us better serve our members,” said Michael Smith, executive director of corporate development for USAA. “Roostify is innovating the home-buying process for consumers and lenders through a platform that brings simplicity and efficiency to something that sorely needs it.”
Source: National Mortgage News, Lalita Clozel