Mortgage marketplace lender raises $70M to expand product offerings

by MPA14 Apr 2015
During the last year, San Francisco-based LendingHome has been quietly pioneering the online mortgage marketplace. Since it launched in April 2014, the startup has originated over $100 million in loans and raised about $109.3 million across three rounds of financing.

"We've rebuilt the entire mortgage process from the ground up in one unified technology platform," Matt Humphrey, co-founder and CEO of LendingHome, said. "Not only is LendingHome giving all borrowers a fundamentally better experience, we're also expanding access to credit for those who were traditionally underserved. “ Currently, the lender services borrowers with investment properties, such as single-family rentals.

The latest round of financing includes a $70 million Series C investment round led by Chinese web firm Renren Inc. "We saw LendingHome execute from zero to over $100M in loans in under a year in an $8T U.S. market opportunity," Joseph Chen, chairman and CEO of Renren, said.

Previously, LendingHome raised an $11.3 million Series A in November 2013 led by Charles Moldow of Foundation Capital and announced a $28 million Series B in September 2014 led by Meyer Malka of Ribbit Capital.  With its latest investment, LendingHome said it will focus on national expansion and possibly expand into consumer, owner-occupant mortgages, according to Forbes.

"The pristine loan performance and attractive risk-adjusted returns are validation of the LendingHome model," said James Herbert, co-founder and president. "With the support of our large base of existing institutional investors and over $100 million in equity, we are in a strong position to introduce new products and significantly broaden our capital markets relationships in 2015."

Founded by entrepreneurs Matt Humphrey and James Herbert, LendingHome prides itself as an “alternative to the antiquated mortgage industry.” Through its 100% online platform, LendingHome said it loans are closed five times faster and at a third of the processing cost compared to the industry average.

“By going beyond traditional credit and valuation analysis, LendingHome gives investors access to attractive, high-quality loans, targeting the non-confirming mortgage opportunity, a $600 billion annual market,” the company stated.

Since its launch, LendingHome has partnered with institutional investors across credit funds, private equity firms, family offices and university endowments, among others. LendingHome has grown to over 85 employees and is currently lending in 13 states across the United States.



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