LoanDepot, the second largest non-bank consumer lender in the U.S., and OfferPad, an on-demand, tech-enabled direct home buyer, and seller, announced recently on a partnership which will include several initiatives designed to streamline real estate processes – both for consumers and real estate professionals.
OfferPad, a startup that uses data to change the way that Americans buy and sell homes, announced earlier, raising $30 million in equity and $230 million in debt from LL Funds, in order to expand its home-buying model. Like its rival Opendoor, the company relies on technology to make offers to homeowners, who value the certainty of a sale and the ability to close within days over getting the highest price. The company currently operates in seven states, including Atlanta, Charlotte, Las Vegas, Los Angeles, Orlando, Phoenix, Salt Lake City, and Tampa with additional cities being added in the coming months.
For OfferPad, which was launched recently, this partnership represents a big milestone. "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 in a call. "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." continued Coleman.
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, mello, to power a fully digital mortgage loan application, offering customers more convenience and control in purchasing and financing their homes.
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