loanDepot Closes $150 Million Securitization Of Personal Loans
First Securitization of Marketplace Lender's Personal Loans Completed with Jefferies
Dec 1, 2015
IRVINE, Calif., Dec 1, 2015 /PRNewswire/ -- loanDepot, America's lender, today announced the closing of a $150 million securitization of its popular unsecured personal loans accessed by consumers on loanDepot.com. This $150 million securitization was structured and sold by Jefferies, a global investment banking firm.
In the first six months since launching its first nonmortgage product, more than $250 million in loanDepot personal loans were funded to nearly 17,000 borrowers nationwide. The company's personal loan applications have increased by nearly 25 percent each month since July on average.
"Demand from our customers requesting a personal loan is very strong and growing," said Anthony Hsieh, chairman and chief executive officer at loanDepot. "Completing this first securitization with Jefferies of our personal loans so soon after launch is a key milestone that enables us to accelerate expansion of the product while meeting growing demand. As a product innovator and technology leader in marketplace lending, we're committed to expanding the loanDepot platform to help even more borrowers fuel their lives and pursue their dreams."
Michael Wade, managing director at Jefferies, said, "We look forward to continuing to work with our client, loanDepot, and its lending platform to structure and deliver innovative investment opportunities to our capital markets investor clients."
The first securitization of loanDepot personal loans coincides with the company's nationwide work force surpassing 5,000 employees, and the expansion of its Consumer Lending division to a new 40,000 square foot location in Orange County, CA.
This securitization of loanDepot personal loans arrives at a time when consumer demand for credit is on the rise. The most recent quarterly report on household debt and credit from The Federal Reserve Bank of New York reports the number of credit inquiries within six months, an indicator of consumer demand for credit, increased at an annualized rate of over 20 percent by 9 million to 182 million from the second to third quarter 2015. The same report shows 6 percent annualized growth in credit card balances to $714 billion, an $11 billion increase, during the same time.
loanDepot personal loans can be used in conjunction with a home loan, or for nearly any purpose including credit card debt consolidation, home improvement, vacations and more. The three most popular uses today for loanDepot personal loans are debt consolidation, home improvement and credit card refinancing.
With the launch of loanDepot personal loans in May 2015, the company redefined marketplace lending as the first national nonbank lender to offer both mortgage and nonmortgage lending products to consumers nationwide. Today, loanDepot personal loans are available up to $35,000 with three- or five-year repayment terms and rates starting at 6.17 percent APR. There are no application fees and funds are deposited into borrower accounts in as little as three days. Borrowers have the added convenience of completing applications online or by phone with a loanDepot consumer lending expert at 800.656.2606.
loanDepot's mission is to be America's lender and employer of choice. Since 2010, the company has experienced 400 percent annual market share growth, today employing more than 5,000 employees that includes 1,500+ licensed loan officers offering responsible borrowers nationwide personal loans, refinance and purchase home loans and home equity loans. Total company funding's through September of this year of nearly $22 billion.
loanDepot, America's lender, 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 trailblazer and innovator Anthony Hsieh, loanDepot operates under the brand names loanDepot.com, imortgage, Mortgage Master, and LDWholesale. The company is headquartered in Foothill Ranch, CA, operates 139+ loan stores offering lending products to consumers nationwide, and generates loan production from five technology-enabled business centers. More than 5,000 people are employed by loanDepot, including 1,500+ licensed loan officers. As America's 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 is an approved seller and servicer for Fannie Mae, Freddie Mac and Ginnie Mae. loanDepot facilitates personal loans product through Cross River Bank, a New Jersey State Chartered Commercial Bank and FDIC member bank. loanDepot.com NMLS # 174457 Learn more at loanDepot.com.
SOURCE loanDepot, LLC