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After raising $100M, AI fintech LoanSnap is being sued, fined, evicted


The company has been sued by at least seven creditors, including Wells Fargo.

Image Credits: Bryce Durbin / LoanSnapAI mortgage startup LoanSnap is facing an avalanche of lawsuits from creditors and has been evicted from its headquarters in Southern California, leaving employees worried about the company’s future, TechCrunch has learned. “The current state is a result of terrible leadership, overspending on futility, and institutional investors falling for the charming facade that Karl can show,” one former employee, who asked to remain anonymous due to fear of retaliation, told TechCrunch. Legal documents show that in May 2021, the same month LoanSnap announced its $30 million Series B with investors like Hoffman, the U.S. Department of Housing and Urban Development Mortgagee Review Board entered into a settlement agreement with the company.

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AI fintech LoanSnap