Homeowners struggling to pay their monthly mortgage often damage their financial health by waiting too long to initiate a forbearance, modification, or workout solution with their lender or servicer. To provide both homeowners and their mortgage providers with a lifeline, consumer-first payments platform EarnUp has announced that it is using a $25M Series B fundraising round led by Bain Capital Ventures with participation from SignalFire, Blumberg Capital, and Flourish Ventures, to expand its GetAhead platform.
With more than $10B in loans under management, EarnUp is able to provide mortgage providers and servicers with advance notice on loans that are at risk of entering forbearance or might qualify for a refinance. Rather than relying on homeowners to initiate a loan modification, the newly expanded GetAhead Dashboard automatically provides companies with a 15-day advance warning on these accounts. By alleviating pressure on homeowners and avoiding missed payments, EarnUp helps stabilise financial health for homeowners and reduces risks and costs for providers.
“Since the onset of the pandemic in March 2020, serious delinquencies have risen 50%, requiring millions of people in America to have an honest, urgent conversation with their lender,” said Matt Harris, partner at Bain Capital Ventures. “Unfortunately, when that doesn’t happen, everyone suffers. We are proud to be investors in EarnUp and their proven, trusted ability to bring homeowners and mortgage providers together in a way where everyone wins – preserving home ownership and financial health.”
The expanded GetAhead concept was validated through EarnUp’s distribution of emergency relief funds provided by social-impact investor Acumen America’s COVID-19 Emergency Response Fund in late 2020. At the time, many lenders and servicers were surprised to receive payments on behalf of customers because they did not realise those loans were at risk of delinquency or entering forbearance.
Beyond delivering advance notice on at-risk loans, the GetAhead Dashboard can also help providers and homeowners connect when a refinance could save borrowers money over a current loan arrangement. This early connection can boost performance for providers while helping credit-worthy homeowners save on rates and improve their financial health even further.
“We are thrilled to have Bain Capital Ventures as a strategic investor as we expand our GetAhead platform to close the historical disconnect and communications gap between homeowners and their mortgage providers,” said Nadim Homsany, EarnUp co-founder and CEO. “Homeowners in financial distress are desperate for this support and the mortgage industry is eager to provide it. Through our technology-powered early warning insights, EarnUp is producing a win-win for the industry and consumer financial health by helping each connect earlier, automatically, and more cost-effectively.”