Three weeks ago, San Francisco-based mortgage technology firm Sindeo shocked the mortgage business when it unexpectedly closed down without warning, and seemingly without explanation.
Now, in an equally shocking and unexpected move, Sindeo appears to be back in business.
As of Monday afternoon, Sindeo’s website is functioning again.
When Sindeo shut down back in June, CEO Nick Stamos posted a letter on the company’s website touting the company’s accomplishments, but stating that those accomplishments weren’t enough to keep the company afloat.
“It was hard, really hard, but Sindeo was delivering on our mission,” Stamos wrote.
“Unfortunately, it wasn't enough. The majority of the staff and leadership team have had their jobs eliminated today,” Stamos continued. “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.”
When the company closed down initially, Stamos sent a letter to investors, advisors, and friends.
In that letter, which was seen by HousingWire, Stamos cited investor-related issues as a reason for shuttering the company.
From Stamos’ letter:
Earlier this month, the investor with whom we had an executed term sheet to lead our Series C financing informed us of a new last-minute requirement to close the round, a requirement that was not realistic to achieve, given our cash position and available runway. My subsequent efforts to secure emergency bridge financing from this investor and others were also not successful.
Given the situation, I have taken the difficult action to do what is right and honor my fiduciary and legal obligations to our employees and clients. Today, we terminated 61 of our 70 employees, keeping only a small set of team members to help customers with their in-process loans and to support me in exploring options for Sindeo moving forward.
Now, it appears that the company has indeed found an “option” for moving the company forward.
A source briefed with Sindeo’s inner workings told HousingWire that Sindeo was actually acquired by one its investors, but HousingWire has not been able to confirm that detail as of yet.
The source also said that very few of Sindeo’s employees will be continuing with the company as it moves into its next phase, whatever that may be.
Calls and emails from HousingWire to a number of Sindeo employees (including Stamos) went unanswered on Monday, so it’s unknown as of publication time if the company is operating at full capacity or in a limited one.
Visitors to the company’s website wouldn’t be able to tell that the company was shut down completely just a few short weeks ago though, as the website appears to be functioning just as it was before the company shut down.
There’s no mention of the company’s shutdown anywhere on the site.
