By Daniel Lanyon on Friday 9 December 2016
The US mortgage marketplace lender is launching a new master trust securitization vehicle to accelerate its capital growth.
San Francisco-based mortgage marketplace lender Lending Home has now funded over $1bn in mortgage loans in the two and a half years since the company launched.
Lending Home, which claims to be the largest and fastest growing marketplace lender in the US mortgage spacem, says to continue and deepen the growth of its capital base it has created a master trust as a securitization vehicle.
This rapid growth in market share stems from servicing creditworthy borrowers that are not served well by traditional lenders across a breadth of mortgage products, the firm said.
Lending Home offers both large institutional investors and individual investors access to high-yielding real estate investments with average gross yields of over 9 percent. To date, Lending Home has returned over $410m in principal and $35m in interest to investors, the firm adds.
A securitization structure provides Lending Home with efficient, scalable, and ongoing access to the securitization markets. Its first two series issued by the trust were secured by mortgage loans with a value in excess of $71m.
This is new iteration is Lending Home’s third securitization this year, and brings the total to $126m. Lending Home closed its first securitization of $55m in March. Both deals were arranged and structured by Nomura Securities International.
“Reaching the $1bn mark is a major milestone in our company’s growth, and for the mortgage marketplace lending space overall,” said Matt Humphrey, co-founder and CEO of Lending Home. “With this expanded access to capital, we plan to accelerate our growth in 2017 to help even more customers all across the country.
“The [securitization] structures we’ve created together are a significant competitive advantage and a key part of our broad capital strategy across whole loan, securitization, fund, and peer-to-peer channels.”
In addition to the company's three securitizations in 2016, it has launched a new investor platform for individuals, transitioned to servicing its mortgage loans in-house, expanded programs to include jumbo loans, and grew revenue over 2.5x in the process.