Can Technology make Syndicated Mortgages safe again.
A mortgage investment company has found a way to reduce costs and increase returns using technology. However, it might have also found a way to revive syndicated mortgages, which have taken a reputational beating in recent years because of unscrupulous players. Fundscraper arranges bridge financing for professional property investors, developers, contractors, renovation projects and fix-and-flippers, provided they’re on first or second, or combination, mortgages between one and three years. And by leveraging technology, it’s cutting costs, too. The company has a $10mln strategic finance facility and processed over $35mln of investor capital into mortgages in the last year. But its automation process, which includes suitability assessments, might be the key to reviving syndicated mortgages. According to Fundscraper’s founder and CEO, algorithms can assess suitability better than humans can, because the latter are prone to a multitude of errors.
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