How Hosper transformed investor onboarding and management with FrontFundr’s technology

Hosper Mortgage Investment Corporation (HMIC) provides investors with passive income secured by real estate while offering short-term solutions for borrowers who may be temporarily unable to qualify for mortgages from traditional lenders. They lend on residential 1st, 2nd, and 3rd mortgages all across Ontario. Hosper MIC strives to be the best alternative to a traditional bank.

Their mortgage experts handle everything from underwriting every investment, recommending suitable options, and managing the investment throughout the term of the loan. They pride themselves on a simple process that’s hassle-free for investors. They offer the opportunity to invest in private mortgages without requiring you to be a mortgage or real estate expert.

With a mission to empower investors and borrowers alike, Hosper MIC has established itself as a trusted partner in the financial industry. Their commitment to excellence and customer satisfaction sets them apart as a leading name in the industry, offering fully managed investment opportunities with the potential for high returns. As a dedicated financial ally, Hosper sought a solution that would provide a seamless experience for their investors. This search led them to transact over $15M through FrontFundr during their first year.

Hosper’s raise in a snapshot

• Hosper MIC raised capital for its three funds: Class A Balance Fund, Class B Comfort Fund, and the Class C High-Yield Fund.
• They processed over $15M across 140 investments over one year under the Offering Memorandum exemption and the Accredited Investor exemption.
• Hosper was able to reduce their manual involvement on each investment transaction by over 90% by switching to FrontFundr’s processing solution.
• FrontFundr’s sophisticated platform provided a turkey solution for their Dealing Representatives to perform Know-Your-Client (KYC).

Looking to support their processes with technology

When Hosper reached out to FrontFundr, their current processes with their existing Exempt Market Dealer (EMD) were outdated and fragmented. It could take up to 1-2 weeks to onboard investors with a manual process that required up to 6-7 hours of actual work from the Hosper team to complete the transaction. The process was confusing for investors and involved Hosper playing the intermediary between their investors and their EMD. They were looking for a solution that simplified the process for investors and reduced the amount of manual intervention required by their team.

A seamless investment experience from start to finish

FrontFundr’s processing platform was the perfect solution to support Hosper’s objectives. The technology was very appealing to their team enabling investors to go through the entire process from start to finish in one session. Something that stood out to the Hosper team was FrontFundr’s Suitability Assessment Manager (SAM) which automatically performs suitability on investments made through the platform. Investors can seamlessly submit their investments, go through suitability, complete their ID verification, and sign the investment documentation with the subscription agreements being automatically generated. Hosper was able to reduce the active work required with each investment from 6-7 hours to 30 minutes or even as little as 15 minutes if they were in the room with the investor.

Sophisticated solution for Dealing Representatives

Hosper was not only looking for technology to improve the process for investors; they were also looking for a solution that would better support their Dealing Representatives. Hosper went through the process of registering with FrontFundr which they admit took some time but it proved to be a seamless experience providing great value to their organization. FrontFundr offers a portal for Dealing Representatives where they can review all the required KYC components with a comprehensive notes section. Overall, Hosper was impressed with the sophistication of the technology and the experience working with FrontFundr’s team which they noted has been fantastic. Hosper looks forward to continuing to work with FrontFundr in the years to come.

“FrontFundr presented a really good opportunity for us to take advantage of the technology created on the EMD platform to streamline the process from start to finish. One of the number one benefits we saw in switching to Frontfundr was that the investor could go from start to finish and complete the entire onboarding in one sitting. That’s through SAM, the investor verification automation, which was great for us. The entire experience has become more seamless and much more user-friendly for our investors.”
- Scott Stevens, Investment Manager

To learn more about raising capital on FrontFundr, visit our raise capital page. If you’re ready to reach out to our team, fill out our online application!

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