Flagstar welcomes applicants for MortgageTech Accelerator

Flagstar Bank has put the call out for entries into its next MorgageTech Accelerator class. 

The deadline for emerging fintechs to apply is April 15. Now in its fifth iteration, the program is aimed at providing support and mentorship to mortgage and property-related startups attempting to come up with innovations to solve challenges and streamline processes in home lending. 

Entrants will be judged on their potential for technology innovation, opportunities to scale and ability to deliver on Community Reinvestment Act goals. All companies with a role in the mortgage process, including origination, processing, marketing, servicing, compliance, sales, underwriting, credit, and quality assessment, are eligible if able to participate in scheduled sessions in the U.S.

“We look forward to meeting our next class of entrepreneurs,” said Lee Smith, the bank’s president of mortgage, in a press release.

“It’s been incredibly rewarding to mentor and empower program participants to achieve new success, while simultaneously adopting some of these new technologies at Flagstar to improve mortgage operations and how we service and connect with customers.” 

Along with mentorship from senior Flagstar leaders, benefits for companies selected to participate include a customized curriculum, opportunities to speak with experts from Fannie Mae and Freddie Mac and sessions on compliance and regulation with law firm Sheppard Mullin. The class of startups also will be able to test their products in real-world scenarios, with the potential for further investments or a vendor relationship with Flagstar following completion of the program. 

Previous participants of Flagstar’s mortgage technology accelerator include Orangegrid, Volly, Stavy and Brace. The latter two firms went on to merge in 2023. 

Last year’s honorees were Housetable, Landis and two artificial-intelligence focused fintechs, Certo/ai and Greenline. 

“Flagstar’s MortgageTech Accelerator connected Greenline with an ideal launch pad in 2023,” said Daniel Hayes, CEO of the income-verification solutions provider.

While other financial institutions, such as Bank of America, have also rolled out similar innovation accelerators aimed at entrepreneurial fintechs, Flagstar’s program remains the sole initiative specifically focused on the mortgage industry.

The accelerator launched in 2019, prior to Flagstar’s acquisition by New York Community Bank, which was completed in late 2022. At the time, New York Community pledged to continue the program. 

Recently the parent company found itself embroiled in a public relations nightmare after a fourth-quarter earnings report led to alarm over its commercial real estate portfolio. The company’s stock value has plunged over 60% since January 30 when it closed at $10.38.

Two weeks ago, former Trump administration officials Steven Mnuchin and Joseph Otting spearheaded an investment group’s purchase to help rescue the Hicksville, New York-based bank. With the deal, Otting became the company’s new CEO.