A fund LendingHome began setting up earlier this year raised $100 million in commitments and established a $300 million credit facility that brings its total potential assets to $400 million.
LendingHome Opportunity Fund II is committed to buying more than $1 billion in high-yield bridge loans over a two-year period, but the company also will continue to sell loans to other investors through other existing channels.
"All of our capital channels are expanding," LendingHome CEO Matt Humphrey said in an interview.
LendingHome, which originally took more than two years to produce its first $1 billion in originations, now is on track to produce more than $1 billion in loans annually, according to the release. The company has funded more than $1.75 billion in loans since it began lending a few years ago.
"The platform is able to grow product much more quickly," he said. "We think it's a testament to the receptivity of customers to our simple online approach and scalable technology."
LendingHome's online lending platform doesn't "need nearly as many physical people in the equation of processing and underwriting loans" as traditional mortgage lenders do, Humphrey said. However, the company, which is based in San Francisco, did open its third office in Pittsburgh last week to house some of its production and engineering functions. It also operates out of an office in Columbus, Ohio.
The company also recently raised $57 million in venture capital funding from previous investors and two new investors, Sberbank and Noah Holdings Ltd. LendingHome will use the funds to expand its engineering team and invest in its digital mortgage product for home buyers and property investors.
The digital mortgage enhancements will allow borrowers to self-serve to even a greater extent than they can now. About 80% of LendingHome's loans get originated without human intervention, said Humphrey. The company has no physical branches, but does allow borrowers to ask questions by phone or through online chat technology.
LendingHome funds both bridge loans to investors who buy and fix up properties for sale and more traditional consumer mortgages. It sells loans to multiple investors through various channels, including a peer-to-peer platform. The company received approval to sell mortgages to Fannie Mae earlier this year.
While LendingHome is primarily a bridge-loan lender, its consumer mortgages are growing quickly and will likely come to represent a larger share of originations, said Humphrey.