Consumer lending platform (P2P company): LoanDepot (LDI) (2015)

LoanDepot Inc. (NYSE: LDI) was founded in 2010, reorganized and established on July 10, 2015, headquartered in the foothills ranch of California, USA, 4177 full-time employees (6/30/2015), is a P2P platform company, self-proclaimed The second largest independent consumer lending institution in the United States after Quicken Loans Inc.

LoanDepot Inc LDI logo

LoanDepot (LDI):

LoanDepot has become the leading consumer credit platform company in the United States by using its technology to provide consumers with credit products that best suit their financial needs. LoanDepot has been providing credit solutions for consumers who are dissatisfied with the products & services provided by banks and other traditional financial service institutions since 2010. Calculated on an annual loan amount (more than 50 billion US dollars), LoanDepot is currently the second largest direct provider in the United States Consumer’s non-bank financial credit institution.

In the first 12 months ending June 30, 2015, the company issued a total of US$22.1 billion in loans, achieving a compound annual growth rate of 125%. Since 2012, the company has maintained this rapid growth momentum.

As of June 30, 2015, the size of the US consumer credit market exceeded $11.8 trillion, most of which are high-quality household debt. Traditional banks and financial institutions have become more and more demanding due to capital requirements, regulatory constraints, and process issues. Unable to meet the increasing demand for consumer credit and the new generation’s requirements for service model innovation, the company’s future development prospects are very bright.

LoanDepot (LDI) advantages:

•Improve customer experience and brand awareness;

•Save money for customers;

• Higher customer conversion and retention;

• Enhanced data optimization, analysis and credit decision-making;

• Lower average customer acquisition costs.

LoanDepot (LDI) investment:

The company’s official website 

LoanDepot Inc. submitted its IPO prospectus on October 8, 2015, and plans to land on the New York Stock Exchange to raise 100 million US dollars, stock code: LDI.

Here is a report about LoanDepot, you can refer to it:

One of the largest mortgage lenders in the United States is looking for a splitter in the P2P lending market. LoanDepot Co., Ltd., founded by Anthony Hsieh, a veteran of secured banking, provides personal loan services to its customers. Investors and consumers can match online and then borrow funds.

Silicon Valley companies are jointly led by Lending Club and the US P2P online lending platform Prosper Marketplace. They have used this model to subvert a direct loan made by banks and financing companies.

When more than 75 start-ups have established websites such as matching investors’ hedge funds with borrowers, the services range from consumers to small businesses seeking loans to repay existing debts or financing large deals, etc., traditional loans The struggle between the institution and the new enterprise began. Non-bank loans are growing too fast. Goldman Sachs Group of the United States stated in a report in March that in the coming years, non-bank loans will eventually reduce annual profits by at least $11 billion.

In 2010, Hsieh, the founder of LoanDepot, said: “There are many start-ups now, making the space more and more irritable.”

The company claims to be the second largest independent consumer lending institution in the United States, second only to Quicken Loans Inc.. It converted $14.3 billion of mortgage loans into long-term loans in June, which was more than twice the total amount of loans last year. According to the news in the US “Household Loan Finance Internal Reference”, the company ranked 11th in the market.

Note: Quicken Loans Inc. is the largest online retail mortgage company in the United States, headquartered in Detroit, Michigan. The website mainly contains information about loans, purchase information, repayment methods, loan interest rates and loan calculators, and is committed to providing customers with high-quality loan services.

Last year, the total amount of unsecured consumption in the online loan market through operators was approximately US$7.4 billion, and it is likely to have a compound annual growth rate of 47% by 2020, reaching approximately 75 billion new loans, according to Morgan Stanley’s May The report said. The bank said this would mean 8.4% of total debt issuance types at that time.

LoanDepot said it has received more than US$2.6 billion in investment from investors and has made a commitment to purchase unsecured consumer loans. The project began in May. LoanDepot is also seeking market lenders to expand its debt issuance, including home equity loans, and competition with consumer loans offered on P2P websites.

The addition of LoanDepot “is a big event for all market participants,” said Matt Burton, CEO of the technology company Orchard Platform, a platform consultant limited liability company and one of the largest providers in the loan service market. .

(Note: The technology company Orchard Platform was established in 2013 and is committed to providing services to loan originators and investors around the world. Its wholly-owned subsidiary Orchard Platform Advisors is an investment consulting company registered with the US Securities and Exchange Commission. To improve the transparency and understanding of the P2P lending industry, and to provide product innovation for the P2P lending industry.)

Market lending platforms have become an increasingly popular investment source institution because interest rates are at a record low. Including BlackRock Group (the largest listed investment management group in the United States), Apollo Global Management Co., Ltd., and hedge fund Ellington and other investment companies aim to directly purchase loans with potentially high returns.

And loans are still a relatively small piece of the vast consumer debt market, and they have almost doubled this year, according to Autonomous Research LLP. Goldman Sachs Group CEO Lloyd Blankfein wrote in an internal memo obtained by Bloomberg News in May that Goldman Sachs intends to seize opportunities for consumers and small businesses to make electronic loans.

Note: Bloomberg is a leading provider of global business, financial information and financial information. It was founded by New York City Mayor Michael Bloomberg in 1981 and is headquartered in Manhattan, New York City, USA.

The initial new business is called P2P lending because it connects borrowers and lenders directly on the Internet. When investments by individual and institutional investors such as hedge funds decrease, fund managers and even banks buy bonds in this way, which is increasingly called market loans.

Hsieh, when he sold other mortgage lenders to E*Trade Financial Corp and Barry Diller’s Alternative Internet Corporation (IAC/InterActiveCorp), he started LoanDepot and saw the advantages of his company because it While growing its mortgage business, it has accumulated approximately 10.5 million potential customers. He said that the company spent $100 million on marketing and added about 350,000 to potential applicants every month.

With the development of market lending, loanepot is also trying to recover profits after housing prices rebounded from the lowest economic depression in the demand for home equity loans. This allows consumers to withdraw cash directly from their own property.

Hsieh said: “P2P business is booming, partly because home equity loans have dried up. More than half of the borrowers who take unsecured consumer loans are homeowners. Americans are looking for other better ways to borrow. It’s not just one flavor of ice cream.”

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