What

Brace is a whitelabeled mortgage servicing solution for banks. Brace lets banks deal with customers directly, providing ongoing and asynchronous customer engagement opportunities, servicer team productivity tools, as well as compliance-related solutions to minimize risk. Founded in 2017, Brace raised a $15.7 million Series B round from Canvas Ventures, Point72 Ventures, and Crosslink Capital in 2021. 

Why

To Jose Morin, VP of Servicing at Brace, the company’s solutions are designed to build and sustain generational wealth, including through more volatile times. Legacy solutions risk bringing vulnerable homeowners closer to default—whether because clients missed a phone call while at work or because banks fail to communicate with homeowners once they’ve agreed to new debt or repayment terms. 

WIth digitized solutions, homeowners “feel like they're part of the process, and they're not intimidated by the legacy systems,” Morin said. Banks are looking for efficient and more engaged solutions that are both low-cost and can reduce default rates. Especially as distressed loan or recidivism rates rise, banks have to look for digital solutions that can scale quickly. 

How

Brace is designed to help shift banks’ operations in line with the needs of the hour. At present, Morin is working with clients’ customer success teams to strategize on what Brace’s product roadmap should focus on. 

Brace’s low-code waterfall engine has been key to that shift. The product helps banks understand which of 63 different types of government programs customers can qualify for. With interest rates high and rising, the tool helps direct at-risk as well as new customers to more favorable refinancing terms. 

Morin said Brace is also shifting its own operations to prepare for any new government programs as they arise. After meeting with the regulator, Brace can integrate a new mortgage program into its waterfalls engine within two weeks. 

With those shifts in mind, Brace says that while default risk may increase, more modern banking through high-touchpoint mortgage servicing operations, accessible educational content, and compliance-maximizing solutions can prevent the kind of homeownership crisis we saw during the Great Recession.

“You focus on early resolution and education, you help [homeowners] understand what options are available,” Morin said. “And then from there, you continue to stay engaged with them.”