loanDepot Launches Into Marketplace Lending With Personal Loans
Matching Borrower Demand to Marketplace Investors, loanDepot is First Tech-Enabled National Nonbank Lender to Offer Both Home Loans and Personal Loans in all 50 States
May 13, 2015
IRVINE, Calif., May 13, 2015 /PRNewswire/ -- loanDepot LLC, America's consumer lender, today moves into marketplace lending, becoming the first national nonbank lender to offer both home and personal loans nationwide. loanDepot now offers mortgage, personal and home improvement loans to borrowers in all 50 states. loanDepot mortgage products include home purchase, refinance, FHA and VA loan programs.
"For decades, consumers looked to traditional banks for financing. But as banks continue to retreat and lose market share, choices and service levels for consumers are becoming scarce," loanDepot CEO and Chairman Anthony Hsieh said. "Our vision is to be a national consumer lender delivering products that serve all stages of a consumer's financial lifecycle. Leveraging loanDepot's current marketing and operational scale, it's now time to evolve our brand and move into marketplace lending. Our nation is at the forefront of a new generation of lenders, where technology, simplicity, and product choice must converge to meet consumer demand. In today's marketplace, loanDepot is best poised to build a new lending experience with products that anticipate our borrower's financial needs as they pursue their dreams."
The company is building on its success with consumer home loan products and has combined its efficient marketing platform and purpose-built technology with advanced predictive data science to offer personal loans that include:
- Approval in five minutes or less from proprietary, internally built credit-score modeling
- Funds deposited into borrower accounts in as little as three days
- Repayment terms of three or five year
- No application fees and no pre-payment penalty
- Rates starting as low as 6.17 percent APR
loanDepot personal loan products can be used in conjunction with a home loan, or for nearly any need such as credit card debt consolidation, home improvement, vacation, to start a business, etc. Borrowers have the added convenience of completing applications online or by phone with a loanDepot consumer lending expert at 800.656.2606.
"Investor response to our move into marketplace lending has been incredibly strong. At launch, we have $650 million in investor commitments with another $1 billion in available capital from interested investors," said Hsieh. "This is a testament to our technology, credit modeling and deep history of lending experience in multiple credit cycles. As a marketplace lender offering mortgage, personal loans, and home improvement programs, loanDepot is building a diversified lending model sustainable in all market conditions and credit cycles. We'll continue adding new lending products, further dissolving the walls between mortgage and nonmortgage lending, with loanDepot as America's lender of choice."
The loanDepot platform was built on a consumer-direct lead-delivery system and loan origination technology engineered to scale the brand into a multi-line, multi-channel marketplace lender with low customer acquisition costs and highly efficient operations. The company's database contains more than 10.5 million consumer contacts. Its current $100 million+ in annual marketing generates an additional 350,000 contacts each month from four web-driven business centers, 130+ branches nationwide and through multiple website platforms. In addition to being offered by loanDepot's dedicated consumer lending division, personal loans will be offered by the company's 1300+ licensed home loan officers, the nation's second largest team of licensed loan officers.
The company anticipates the delivery of personal lending to be widely accepted by its current base of borrowers. During a survey conducted in the fourth quarter of 2014, 13 percent of loanDepot's customers said they may be interested in a personal loan of up to $35,000. loanDepot recently acquired an additional 90,000 square feet of office space in Orange County, Calif., and the company plans to hire 1000 additional employees to prepare for growth.
Consistent with loanDepot's commitment to deliver high-touch, high-tech customer service, the company's consumer lending division will offer a complimentary home loan analysis to all homeowners applying for a personal loan to determine potential savings from a refinance based on today's low interest rates. Homeowners can be immediately connected with one of the company's 1300+ licensed home loan officers to review best mortgage options. Also, when a personal loan is combined with a $25,000 loanDepot home improvement loan, consumers may borrow up to $60,000 for home repair or improvement.
Launched in 2010, loanDepot has quickly become the nation's second largest nonbank consumer lender, consistently funding more than $2.5 billion in consumer home loans every month. Since 2012, the company has experienced 400 percent annual market share growth.
Earlier this month, loanDepot announced the appointment of Brian Biglin as chief risk officer to accelerate the development of the company's proprietary credit and risk models. Biglin comes to loanDepot after serving as chief credit officer for PayPal and chief risk officer for Intuit.
ABOUT LOANDEPOT LLC
loanDepot LLC is an emerging-growth nonbank consumer lender and market leader offering mortgage and nonmortgage lending products in all 50 states. Founded in 2010 by industry pioneer and innovator Anthony Hsieh, loanDepot LLC operates under the brand names loanDepot.com, imortgage, Mortgage Master, and LDWholesale. The company maintains dual headquarters in Foothill Ranch, CA and Plano, TX, operates 130+ local branches offering lending products to consumers nationwide, and generates loan production from four technology-enabled business centers. More than 4000 people are employed by loanDepot, including 1300+ licensed loan officers. As America's consumer lender, loanDepot is disrupting consumer finance and redefining the market with less division between mortgage and nonmortgage credit amid changes in consumer behavior and technology, access to credit, economic cycles and market consolidation. loanDepot LLC is an approved seller and servicer for Fannie Mae, Freddie Mac and Ginnie Mae. loanDepot LLC, NMLS # 174457 Learn more at loanDepot.com.
SOURCE loanDepot LLC