LoanDepot, the nonbanker mortgage lender that pulled a $510 million initial public stock offering last month, just raised $150 million in the securitization market.
The bond offering was backed by consumer loans, not mortgages, and was structured by Jefferies. It is unrated. Pricing was not disclosed.
LoanDepot was founded in 2009 and is now the nation’s second largest nonbank mortgage lender. Third quarter originations reached $7.3 billion, double the year-earlier figure, according to its registration statement with the Securities and Exchange Commission.
The company began offering personal loans nationwide in May. Over the following six months, it has funded more than $250 million to nearly 17,000 borrowers. Personal loan applications have increased by nearly 25% each month since July, on average.
The 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. Loans are available up to 35,000 with three- to five-year terms and start at 6.17% annual interest rate. The three most popular uses for loanDepot personal loans are debt consolidation, home improvement and credit card refinancing.
"Demand from our customers requesting a personal loan is very strong and growing," said Anthony Hsieh, chairman and chief executive officer. "Completing this first securitization with Jefferies of our personal loans so soon after launch is a key milestone that enables us to accelerate expansion of the product while meeting growing demand.
In November, the company called off its initial public offering when the market's likely price fell far below the $16 to $18 per share sought by the company, which aimed to raise as much as $510 million.