LoanDepot is considering an IPO at the end of the year.LoanDepot will need to manage potential investors' expectations—it would be hard to pitch itself as a technology company—but its digital capabilities are a selling point. LoanDepot—with digital income, assets, and employment verification; algorithm-based loan options; and quick title clearance—presents a similar value proposition as Quicken for its digital mortgage process.
At IPO, a big selling point for Quicken's parent company Rocket Cos. was its digitized mortgage process. But when it in August at a valuation of about $36 billion, Rocket Cos. failed to convince investors that it was a technology company, and fell well short of its about $40 billion target. Nonbank lenders have come to dominate the market for single-family purchase loans. According to the Consumer Financial Protection Bureau's Mortgage Disclosure Act data in June this year, the share of loans originated by independent mortgage companies has jumped in the last decade: They originated 56.4% of all home-purchase mortgages in 2019, versus just 35.0% in 2010. Quicken Loans was the dominant lender in 2019, originating 541,000 mortgage loans.
Innovations in mortgage originations have forced banks to adapt their mortgage lending customer experience. Over the last five years, the mortgage origination customer experience has to shift from a time-consuming, paper-filled process to a quick, clean digital format with built-in ID verification and conditional preapprovals.
Property Property Latest News, Property Property Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessInsider - 🏆 729. / 51 Read more »