LoanSnap's financial troubles began in 2021, despite originating nearly 1,300 loans valued at almost $500 million that year. By 2023, the company reported only 122 loans. Between December 2023 and January 2024, the company missed payroll and its headcount reduced from over 100 to less than 50. The company's future remains uncertain as it faces ongoing legal and financial challenges.
Key takeaways:
- AI mortgage startup LoanSnap is facing multiple lawsuits from creditors, including Wells Fargo, and has been evicted from its headquarters in Southern California.
- The company, which has raised around $100 million in funding since its 2017 seed round, has also been fined by state and federal agencies and nearly lost its license to operate in Connecticut.
- Despite the capital it raised, LoanSnap has been sued by at least seven creditors who collectively allege the startup owes them more than $2 million.
- LoanSnap's financial troubles and legal issues have left employees worried about the company’s future, with headcount dwindling and payroll being missed.