IRVINE, Calif. and PHOENIX, Nov. 2, 2017 /PRNewswire/ -- loanDepot, the nation's second largest non-bank consumer lender, and OfferPad, a leading on-demand, tech-enabled direct home buyer and seller, today announced a partnership which will include several initiatives designed to streamline the real estate process for consumers and real estate professionals.
As the first step in the partnership, the companies will launch OfferPad Home Loans, a joint venture that will provide customized mortgage financing solutions to OfferPad's customers. The newly formed venture will use loanDepot's proprietary technology platform, melloTM, to power a fully-digital mortgage loan application, offering customers more convenience and control in purchasing and financing their homes.
"OfferPad is a disruptive force within the real estate industry," explains Anthony Hsieh, CEO and Chairman of loanDepot. "Digital adoption continues to reshuffle the deck on how consumers interact with lenders and real estate service providers. The platforms that combine best-in-class digital experiences with local market expertise will thrive. As innovators in residential real estate, Jerry, Brian and the OfferPad team share this vision and we are eager to work together to create customer-centric experiences through innovative technology, proprietary products and local service."
"Through this partnership, we are breaking down the traditional silos that have defined the real estate and lending industries," said Jerry Coleman, co-founder and co-CEO of OfferPad. "We are dedicated to creating a great experience for our customers. Together with Anthony and the loanDepot team, we can achieve our goal of revolutionizing the residential real estate experience."
In addition to powering a digital mortgage process for OfferPad customers, the venture will look to offer bridge financing options to solve one of the biggest pain points for home sellers – timing the purchase of a new home with the sale of an existing home still on the market. By combining an instant offer from OfferPad with a bridge loan from loanDepot, the joint-venture will provide homeowners with the flexibility to confidently move into their new home while their existing property is still for sale, backed by the security of a guaranteed purchase from OfferPad.
"By leveraging our respective strengths and balance sheets, we'll be able to offer homeowners, real estate professionals and homebuilders options and flexibility never available before in the industry," continued Hsieh. "The opportunities are vast, and we're just getting started."
Along with tech-enabled mortgage products, the companies will explore ways to provide customized instant purchase offer solutions to loanDepot's customers and real estate agent and homebuilder referral partners in specific markets. With continued collaboration, the companies expect to introduce end-to-end solutions that reduce the friction consumers experience when buying or selling a home and empower real estate partners with new ways to service their clients.
OfferPad co-founder and co-CEO Brian Bair added, "When we set out to create a better experience for home sellers and buyers, we knew that providing a better mortgage solution was essential. We found that in our partnership with loanDepot and look forward to further announcements as we work together to shape the future of the real estate market."
The partnership follows several exciting developments for OfferPad this year. The company recently announced its 'Agent Access' program, which will facilitate the referral of homebuyers to local agents after expressing an interest in buying an OfferPad home. In August, Bair was recognized by Inman News with the 'Most Innovative Agent' award as part of its 2017 Innovator Awards series.
loanDepot's mello technology platform enables the company to integrate partner models such as OfferPad's into an intuitive, web-based customer portal and a state-of-the-art, mobile point-of-sale system for a fully-digital mortgage loan application experience. Last November, the company expanded its product offering for real estate transactions through the acquisitions of Closing USA, LLC and American Coast Title, Inc., establishing a national platform for integrated mortgage, title and closing solutions.
This announcement is the first in what is expected to be a series of milestones that will reflect a shared commitment to innovation in real estate and lending. Mr. Hsieh intends to make a personal investment in OfferPad concurrent with the next round of company financing.
loanDepot is the nation's fifth largest retail mortgage lender and second largest non-bank consumer lender. The company was the first non-bank lender to offer home, personal, and home equity loans. In 2017, the company surpassed $125 billion in funding in just seven years of operation. Headquartered in Southern California, loanDepot has 1,700+ licensed loan officers who hold 12,000+ licenses. The company currently works with partners across the real estate spectrum, including powering the mortgage platforms for four of the top 25 homebuilders nationally. The company also operates local lending stores nationwide. NMLS #174457.
OfferPad is the leading tech-enabled direct home buyer and seller. OfferPad's on-demand technology platform is revolutionizing the industry with an innovative end-to-end real estate solution. The company empowers the consumer with choice, convenience and certainty, and eliminates the stress and unpredictability associated with the traditional real estate process. OfferPad also works with real estate agents, homebuilders and other real estate technology companies, including Zillow, to provide homeowners with more options to buy and sell their homes. Founded in 2015, the company's leadership team has decades of real estate experience and has collectively purchased, renovated, rented or sold more than 100,000 homes. OfferPad is a privately held company headquartered in Phoenix, Arizona, and currently operates in Atlanta, Charlotte, Las Vegas, Los Angeles, Orlando, Phoenix and Salt Lake City, with additional cities being added in the coming months.