Launches New Master Trust Securitization Vehicle to Accelerate Capital Growth
SAN FRANCISCO–(BUSINESS WIRE)–December 8, 2016–
LendingHome, the largest and fastest-growing mortgage marketplace lender, has now funded over $1 billion in mortgage loans in the two and a half years since the company launched. This milestone further extends LendingHome’s position as the technology and scale leader in mortgage marketplace lending.
In addition to this momentum, LendingHome continues to deepen and widen its capital base with the creation of a master trust as a securitization vehicle. The first of its kind for marketplace lenders, this structure provides LendingHome with efficient, scalable, and ongoing access to the securitization markets. The first two series issued by the trust were secured by mortgage loans with a value in excess of $71 million. This is LendingHome’s third securitization this year, and brings the total to $126 million. LendingHome closed its first securitization of $55 million in March. Both deals were arranged and structured by Nomura Securities International.
“Reaching the $1 billion mark is a major milestone in our company’s growth, and for the mortgage marketplace lending space overall,” said Matt Humphrey, co-founder and CEO of LendingHome. “With this expanded access to capital, we plan to accelerate our growth in 2017 to help even more customers all across the country. We’re very pleased with the Nomura partnership and regard them as one of the most reliable and innovative investment banks on the street. The structures we’ve created together are a significant competitive advantage and a key part of our broad capital strategy across whole loan, securitization, fund, and peer-to-peer channels.”
This year has marked a substantial period of growth for LendingHome. The company completed three securitizations, launched an investor platform for individuals, transitioned to servicing its mortgage loans in-house, expanded programs to include jumbo loans, and grew revenue over 2.5x in the process. Additionally, LendingHome hired two new executives to augment its risk and operational leadership, bringing deep experience in underwriting, risk modeling, credit analytics, mortgage operations, and technology from top financial institutions.
LendingHome’s latest achievement — funding over $1 billion in mortgage loans — shows strong demand for its high-quality mortgage products and real estate assets as well as its sophisticated use of technology to improve the mortgage experience. The company is rapidly growing its market share by working with creditworthy borrowers that are not served well by traditional lenders across a breadth of mortgage products. LendingHome’s online platform transforms the archaic traditional mortgage process to make it a faster, simpler, and more transparent experience than what banks and traditional mortgage lenders offer.
At the same time, LendingHome continues to instill confidence among investors. It offers both large institutional investors and individual investors access to high-quality, high-yield real estate investments with average gross yields of over 9 percent. LendingHome has returned over $410 million in principal and $35 million in interest to investors with minimal realized losses.
LendingHome reimagines the traditional mortgage process to transform it into a fast, transparent, and reliable marketplace for borrowers and investors. It does this through its proprietary technology platform and team of seasoned real estate investment experts. LendingHome serves borrowers looking for financing to purchase or refinance residential real estate properties. At the same time, it serves institutional and individual investors looking for access to attractive, high-yield real estate assets. Based in San Francisco, California, LendingHome has over 250 employees and has raised over $100 million in equity financing from Renren, Ribbit Capital, Foundation Capital, First Round Capital, and more. www.lendinghome.com
Sharna Brockett, 415-734-1763