Mortgage Tech Company Sindeo Calls It Quits

After a four-year run, San Francisco-based Sindeo, a mortgage technology firm, announced its shutdown Tuesday without explanation.

CEO Nick Stamos had co-founded the business on more than $15 million in funding to enhance and simplify the mortgage-shopping experience.

“But, startups are hard and simplifying the highly regulated, complex business of mortgages is even harder,” he wrote in a public announcement on the company website. “I believed we had overcome the biggest hurdles, but unfortunately, we didn't. Today, we made the difficult decision to wind down Sindeo.”

Although “devastated,” Stamos said he was proud to have defied the odds by servicing mortgage applicants with a market of more than 1,000 loan programs and partnering with top real estate and consumer finance firms. What’s more, he boasted of Net Promoter Scores, which measure customer satisfaction, of 81 relative to the average big-bank score of -3.

“Unfortunately, it wasn't enough,” he wrote. “The majority of the staff and leadership team have had their jobs eliminated today. A very small team will be kept on for a short period of time to help our clients successfully close their loans that are already in process.”

Company leadership had included General Counsel and Chief Compliance Officer Jobe Danganan, a former adviser with the Consumer Financial Protection Bureau, as well as COO and CFO Deepak Kumar, a former Federal National Mortgage Association FNMA executive.

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