Boston-based financial technology firm Stavvy has raised $40 million in a funding round and partnered with a Michigan-based lender as the fintech continues to build digital banking and lending platforms.

Stavvy said in a statement yesterday that it had raised the capital in a Series A funding round that was led by Morningside Technology Ventures, a private equity and venture capital investment firm based in Cambridge and Hong Kong. In raising over $40 million, Stavvy completed the largest ever Series A funding round for a New England-based financial, legal or property technology company, according to the statement.

“When we launched Stavvy in late 2019, we had no idea what was in store for the world in 2020,” Stavvy’s co-founder, Josh Feinblum, said in the statement. “We’re proud of the technology we’ve developed to help homeowners and buyers in this challenging time, and grateful for this opportunity to amplify our services and impact. We look forward to our continued innovation and growth.”

Stavvy designs platforms to manage security risk and improve processes in lending and banking. Its software includes remote signature and remote notary tools to close mortgages electronically, as well as video conferencing tools to perform remote transactions.

Part of the funding will be used to expand the company’s hiring initiative, the statement said. The fintech recently expanded its staff by over 400 percent.

The recent hires included a new chief strategy officer, Shane Hartzler, the former director for eMortgage strategy and operations at Fannie Mae.

Stavvy also announced an alliance with Troy, Michigan-based Flagstar Bank to provide remote loan modification services.

“Stavvy’s digital technology has helped Flagstar efficiently and securely assist homeowners seeking relief with their mortgage payments due to COVID-19,” Ken Creech, Flagstar’s CIO of servicing, said in the statement. “Thanks to Stavvy, we can process more requests to help customers more quickly, reduce errors in the signature process, and even better, walk homeowners through their loss mitigation closing during this difficult time.”

Flagstar Bank has about $30 billion in assets and provides commercial, small business and consumer banking services at 158 branches in Michigan, Indiana, California, Wisconsin and Ohio.

“This is a historic milestone for Stavvy,” Kosta Ligris, Stavvy’s co-founder, said. “This funding round bolsters our ability to expand our operations and grow our team with top talent who share in our passion and mission to transform how banking and financial transactions are conducted. Our alliance with Flagstar is a major step toward bringing real estate lending and servicing into the 21st century and has enabled us to assist consumers on a national scale. This is only the beginning of a very exciting journey to transform banking and lending.”