loanDepot announced it closed a $150 million securitization of unsecured personal loans, demonstrating the increasing demand for the new product.
The online mortgage lender officially moved into marketplace lending on May 13, becoming the first national nonbank lender to offer both home and personal loans nationwide.
The $150 million securitization was structured and sold by Jefferies, a global investment banking firm.
Since its launch into its first non-mortgage product, loanDepot has funded more than $250 million in personal loans to nearly 17,000 borrowers nationwide.
The company said its personal loan applications have increased by nearly 25% each month since July on average.
"Demand from our customers requesting a personal loan is very strong and growing," said Anthony Hsieh, chairman and CEO at loanDepot. "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.”
The company said it currently offers personal loans of up to $35,000 with three- or five-year repayment terms and rates starting at 6.17% APR.
Most recently, the company made headlines when it decided to withdraw its Initial Public Offering.
loanDepot’s decision to withdraw its IPO was easier than expected, according to Hsieh in a company blog.
The online mortgage lender was scheduled to trade on the New York Stock Exchange on Nov. 13 but announced on Nov. 12 that it was withdrawing its IPO due to adverse "market conditions."
“Unlike other IPO candidates, we’re already moving forward with our plans because of our capital reserves and the investor confidence we’ve earned beyond the IPO market. And while an IPO continues to be an option, perhaps one day in the future, it’s not a necessity,” Hsieh said in the blog.