LoanDepot sells $150 million in personal loan debt
LoanDepot sells 0 million in personal loan debt
In all, $ 250 million in personal loans have been issued to 17,000 borrowers since the loanDepot launched its personal loan business in May. PAUL RODRIGUEZ , STAFF PHOTOGRAPHER
LoanDepot is looking to hire more information technology employees, underwriters and loan officers at a job fair planned for 6 p.m. Thursday at the Courtyard Irvine Spectrum.
Foothill Ranch lender loanDepot’s expansion into consumer lending reached a milestone this week with the sale of $ 150 million worth of personal loans to a global investment bank.
Jefferies, a New York-based investment banking firm, purchased the personal loans, then bundled the debt and sold it to investors as securities, said Bryan Sullivan, loanDepot’s chief financial officer.
In all, $ 250 million in personal loans have been issued to 17,000 borrowers since the online lender launched its personal loan business in May.
“It’s a lot. That’s the beauty of the (loanDepot online) platform,” Sullivan said. “We see an awful lot of consumers come to loanDepot trying to figure out which is the best product for them.”
The firm started as a nonbank mortgage lender in 2010, issuing more than $ 50 billion in home loans since its founding, $ 22 billion of that in 2015 alone, the company said.
But with rising interest rates expected to decrease some of the mortgage refinance business in coming years, the company is expanding into the $ 11.8 trillion consumer lending market.
In addition to the launch of its personal loan business, loanDepot began offering home equity loans in September.
Cross River Bank provides the personal loan funding and owns the debt generated through loanDepot’s website or phone bank, Sullivan said. LoanDepot gets a percentage from each transaction.
Borrowers can get up to $ 35,000 for three- and five-year terms at rates ranging from 6.17 percent to 30 percent, Sullivan said. The average loan is $ 15,000, with rates in the 14 percent to 15 percent range.
The most common reasons for personal loans are debt consolidation and home improvement, a company statement said.
The company, which aborted an initial public offering last month, said the debt sale shows that loanDepot can continue growing without issuing stock.
Earlier this year, loanDepot expanded into more space at its Foothill Ranch headquarters and opened up additional offices in Costa Mesa and Lake Forest.
Contact the writer: 714-796-7734 or firstname.lastname@example.org