Last week, loanDepot announced the closing of its $150 million capital transaction. The online lender revealed it plans to use the funds to continue investments in technology and product development.
Sharing details about the transaction, Anthony Hsieh, chairman and CEO at loanDepot, stated:
“Capital investment in consumer lending and in the mortgage industry is very tight and highly selective. 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.”
The lender also reported that it is heading into the second half of the year with 2016’s second quarter funds securing nearly $10 billion in home, person, and home equity loans. Hsieh commented:
“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. 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.
He then added:
“We believe this approach strengthens our position as the leading modern lender as the industry heads into the next generation of lending.”