FREDERICK, Md. Ultraprise Corp. and LoanTrader Inc. of Irvine, Calif., are to announce today their merger as Ultraprise Loan Technologies Inc.
The two are also announcing that they have closed a $9.5 million round of equity funding for the new company. The round was led by Capital Z Financial Services Fund II LP and the other investors were Koch Ventures Inc., FBR Technology Venture Partners, and FBR Financial Service Partners.
Ultraprise has shifted this year from hosting an open, multiparty Internet whole-loan exchange to creating private-label whole-loan online conduits between individual mortgage lenders and their correspondents. It also got a boost by entering a $1.3 million integration contract with Freddie Mac.
LoanTrader develops customizable Internet systems for loan originators.
Ultraprise president and chief executive officer John Bourne will have those titles with the new company. It will be headquartered in Frederick and maintain development, professional services, and hosting operations in Irvine.
By combining the technologies of Ultraprise and LoanTrader we provide financial institutions with the solution framework they need to manage their loan data more cost-effectively, automating many manual processes and creating operational efficiencies, Mr. Bourne said in a prepared statement. Ultraprise Loan Technologies will be in a unique position as the only mortgage technology company providing e-commerce infrastructure and application software for processing loans and other related assets from origination to securitization.
Ultraprise Loan will use the new round of funding to integrate the predecessor companies and market an end-to-end solution to operational inefficiencies in the mortgage industrys primary and secondary markets, Mr. Bourne said. He added that the combined company should be profitable by yearend.
Officials said that Ultraprise Loans near-term focus will be to improve efficiencies in application performance, corporate operations, and other areas and to leverage market visibility.