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.
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[1] 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.
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.
