CHICAGO, April 23, 2015 /PRNewswire/ -- Today Privlo continues its rapid national expansion, entering Illinois, one of the most populous and economically diverse states in the country. Due to its varied workforce, Illinois sees thousands of borrowers rejected for mortgages each year because their jobs don't fit within the traditional lending mold, causing lenders to unfairly label them as riskier candidates. With Privlo's recent expansion, Illinois' small business owners, self-employed workers, entrepreneurs, contractors, and Millennials with non-traditional career paths will now find homeownership within reach.
Illinois' own John Elias, former Executive Vice President at Chicago-based Guaranteed Rate, says, "It's exciting to finally have a trustworthy, compliant alternative mortgage option that can help put dislocated buyers into their dream homes – like business owners and the self-employed. It will be great for the housing industry in Illinois."
Approximately 1 in 3 workers in the greater Chicago metro area are self-employed and parallel to that, roughly 1 in 3 traditional purchase loan applications in Chicago get denied. "When the recession hit and unemployment soared in the state, that midwestern work ethic kicked in and Illinoisans began starting businesses, turning to self-employment and freelancing," says Privlo CEO Michael Slavin. "No doubt it's helped pave the path to economic recovery but it's also left thousands of deserving borrowers out of homes. Most lenders don't understand how to accurately evaluate those without a W2 or typical tax return, and that's where we excel."
Privlo takes a more holistic approach to mortgage lending by considering alternative documentation and a wider range of information than traditional lenders do. They specialize in lending to:
- Self-employed workers including 1099 workers, contractors, freelancers and seasonal workers. Privlo expects demand in areas like West Town and cities like Glen Ellyn and Naperville, which are experiencing a population boom, as well as tech startup magnet Champaign, often referred to as the hub of Silicon Prairie.
- Entrepreneurs including business owners and tech founders. Privlo aims to serve Illinois' recent surge in tech workers and entrepreneurs.
- Millennials who may have limited credit histories, non-traditional career paths, or multiple streams of income. Privlo is better able to understand their finances and work with those who are ready to get into their first home.
- Professionals who earn uneven bonuses or large commissions.
- Foreign nationals with work visas who plan to remain in the country for years or eventually become citizens. Illinois, especially Chicago, has drawn a growing number of immigrants in the past decade where now nearly every 1 in 6 residents are immigrants.
Illinoisans with a recent credit blemish will also have a second chance at homeownership as Privlo also works with responsible credit rebuilders who may have a foreclosure or bankruptcy as recent as one year, or six months for a short sale.
"What separates us from traditional lenders is the proprietary technology we've developed," says Privlo's Chief Credit & Product Officer, Saro Vasudevan. "Using that powerful technology backend, we aim to lower the cost of mortgages over time for people who are unable to get government-backed loans."
Privlo is operating in 11 states and plans to be active in 21 states (90% of the available market) by the end of the year.
Launched in 2011 by CEO Michael Slavin, Privlo (https://privlo.com/) provides mortgages to high-quality borrowers who aren't eligible for traditional bank loans. The founding team comes from the worlds of consumer finance, real estate and technology startups, and is backed by Spark Capital and QED Investors. Privlo is headquartered in Los Angeles, CA and currently lending in California, Colorado, Idaho, Illinois, Maryland, Minnesota, Tennessee, Texas, Virginia, Washington State and New Mexico with additional states planned in the coming months.