loanDepo announced the closing of $150 million in term debt financing on August 9, 2016. The company intends to use the proceeds to further fuel its record-breaking performance with continued investments in technology and product development, and to leverage its balance sheet to hold certain loan assets.
"Capital investment in consumer lending and in the mortgage industry is very tight and highly selective," says Anthony Hsieh, chairman and chief executive officer at loanDepot. "Investors are interested in category leaders with scale who succeed in all credit cycles. This deal confirms the strength of our business model and the positive momentum of our brand. It also signals the competitive advantage loanDepot has in accessing capital in today's market as we pursue our long-term growth strategy."
As the nation's second-largest nonbank consumer lender, loanDepot heads into the second half of 2016 with second-quarter fundings reaching nearly $10 billion in home, personal and home equity loans. Total fundings for the first half of 2016 are up 16 percent compared to the same time last year. The number of loans funded by loanDepot in the first six months of 2016 increased by 33 percent compared to the same period last year, further demonstrating the value of the company's personal loan platform and cross-selling opportunities between loan products.
"Working capital and liquidity are essential for today's nonbank lender, and only available if you have scale, a solid track record and a great reputation," says Hsieh. "loanDepot is a strong and stable company responsible to our customers, employees and shareholders. We'll continue reinvesting back into our platform in a variety of ways, including technology, the customer experience and product development. We believe this approach strengthens our position as the leading modern lender as the industry heads into the next generation of lending."
In November 2015, the company postponed its initial public offering. This capital debt financing is the continuation of its capital strategy and commitment to pursue long- term growth plans.
Launched in 2010, loanDepot has achieved 80 percent year-over-year average annual growth from 2010 to 2015. The company continues to make significant reinvestments into its proprietary technology and marketing platform, credit and risk models, and product delivery systems. The company remains an employer of choice for its 5,200 #TeamloanDepot employees who continually vote the company a Top Workplace across the nation. Today the company operates from eight business centers and 150+ loan stores across the nation. loanDepot was the first nonbank consumer lender to offer home, personal and home equity loan products nationwide.