SAN FRANCISCO–(BUSINESS WIRE)–LendingHome,
an online lender challenging the mortgage finance industry, today
announced it is a Forbes Fintech 50 company for the second year in a
row. The prestigious list highlights 50 innovators that are changing how
people save, spend, and invest.
This is the magazine’s fourth Fintech 50 list, and the Forbes staff
spent months pouring over nominations looking for financial technology
companies that exhibited, among other criteria, “strong growth over the
past year … at a faster pace than competitors.” The list recognizes
companies that are “making industry-changing innovation.”
At inception, LendingHome offered an alternative to traditional lenders,
most of whom are hampered by high overhead, legacy software, and a
continued reliance on manual processes. In the third quarter of 2018, it
cost traditional lenders almost $8,200 to issue each mortgage, according
to the most recent Mortgage Bankers Association’s Quarterly Mortgage
Bankers Performance Report [source].
Most lenders lose money on every loan they make, according to the report.
By using built-from-scratch, online technology, LendingHome has cut the
cost of a mortgage in half, and those savings are being passed on to
borrowers in the form of lower rates, lower fees, and no hidden charges.
The solution LendingHome provides has profoundly resonated with the fix
and flip industry, popularized by reality shows such as HGTV’s “Flip or
Flop” and “Fixer Upper.” House flipping is a key component of the U.S.
residential real estate industry, providing a significant upgrade to
aging homes in need of repair. More than half of all homes are at
least 39 years old, according to the U.S. Census Bureau’s American
In 2018, LendingHome became the No. 1 lender to the U.S. fix and flip
industry, by number of loans and by dollar volume.* It took just four
years to overtake an entire industry.
“When we founded the company in 2013, we knew we could do better using
technology,” said Matt Humphrey, co-founder and CEO of LendingHome. “Our
back-office credit, data, and underwriting – all informed by tech – has
really set us apart. We have figured out how to bring data to bear to
automate huge pieces of the underwriting process. Data allows us to very
accurately predict what the home’s after-repair value will be. Data
allows us to make the process hyper-efficient, which lowers the cost and
rates for borrowers. As a result, these are high-quality loans, which
makes investors on Wall Street very happy.”
In 2018, LendingHome achieved a new company record: the origination of
more than $3 billion in mortgage loans since its founding. The company
achieved this milestone at an unprecedented pace: it lent its third
billion in just eight months, which is 33% faster than the second
billion, and 375% faster than it took to lend the first billion.
For the complete list and more, visit: www.forbes.com/fintech50.
*LendingHome defines a flipper, or property investor, as someone who has
completed at least one home purchase and resale in a year or less with
at least 10% profit, or someone who has purchased and resold at least
two homes in 1,000 days or less.
LendingHome has designed a better way for people to buy a home. Its
built-from-scratch technology has transformed a slow, painful,
paper-based process into a fast, transparent, online experience. At the
same time, LendingHome is a marketplace lender: institutional and
accredited investors have access to attractive, high-yield real estate
assets. Since it started lending in mid-2014, LendingHome has funded
more than $3.5 billion in mortgage loans. The company is headquartered
in San Francisco with an office in Pittsburgh, Pa. To learn more, go to www.lendinghome.com