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Last updated on December 5th, 2022 at 10:05 pm
Interfirst Mortgage Co. the Chicago-based mortgage originator has raised $175 million to speed up growth and fund new technologies, just 16 months after relaunching its operations.
The firm said on Wednesday that principals of the private holding company StoicLane led the round.
StoicLane said Funds handled by Oaktree Capital Management, MFA Financial, numerous family offices, and other tactical investors were invested through StoicLane’s special purpose vehicle.
In 2001 Interfirst was discovered as a retail originator but later in 2008, it expanded to the wholesale channel and the correspondent channel in 2011.
The company stopped its operations in July 2017 after years of declining volumes. In 2016 the originations went from $14.1 billion in 2012 to $2 billion.
Interfirst last year reopened its services with a new proprietary loan origination technology platform.
Artificial intelligence to origination, traditionally a complex process was applied by the company to eliminate upfront fees and cut interest rates. It also made a push to appoint teachers and first responders to be loan officers.
Interfirst told HousingWire in August that it created $1.65 billion in loan volume between June 2020 and June 2021.
The company at present doesn’t offer FHA, VA, or USDA loans, just conventional and jumbo products.
But Interfirst’s tech bend has unquestionably attracted some sophisticated investors.
CEO of StoicLane and one of the investors in the round, Al Goldstein, said in a statement, “The mortgage industry is fragmented and ripe for trouble by tech-enabled, customer-centric platforms.”
In September, Goldstein started the private holding company StoicLane alongside Matt Foran and Jake Nice.
The holding company will invest in finance, insurance, and real estate businesses.
The team co-founded quite a few businesses, such as real estate investment trusts (REIT) Pangea Properties and New Lake, the fintech Enova, and the online lending company Avant.
From the time 2004, they state that they have created $4 billion in equity value to investors.
“Al and the team share our planned vision for the long-term,” said Dmitry Godin, CEO of Interfirst.
Reference Source: Housingwire
