AI mortgage startup LoanSnap is facing a wave of lawsuits from creditors and has been evicted from its headquarters in Southern California, leaving employees concerned about the company’s future, TechCrunch has learned.

LoanSnap, founded by serial entrepreneurs Karl Jacob and Allan Carroll, has raised approximately $100 million in funding since its 2017 seed round, with $90 million raised between 2021 and 2023. Investors include Richard Branson’s Virgin Group, the Chainsmokers’ Mantis Ventures, Baseline Ventures, and Reid Hoffman. The startup also took on around $12 million in debt.

Despite the capital it raised, since December 2022, LoanSnap has been sued by at least seven creditors, including Wells Fargo, who collectively allege the startup owes them more than $2 million. LoanSnap has also been fined by state and federal agencies and almost lost its license to operate in Connecticut.

While LoanSnap has not shut down yet, the company's internal environment is tense as workers await clarity on the company’s future. Employee headcount has decreased significantly, with layoffs and attrition reducing the number of employees to less than 50 from a high of over 100.">...