LoanDepot LLC, the second largest non-bank mortgage lender in the U.S., launched two new businesses to expand real estate lending through its technology platform dubbed Mello.
The Foothill Ranch-based firm began a new home improvement unit that lets contractors offer financing to clients. Borrowers can get up to $75,000 and work with verified contractors through a loanDepot smartphone and desktop computer app.
Homeowners spend on average $4,000 to $6,000 a year on home repairs and upgrades, loanDepot said, citing statistics from Zillow and the National Association of Homebuilders. About half of homebuyers in 2016 needed improvements on their new homes and 83% of sellers make improvements before selling.
The second new unit, called mello Home, connects pre-approved borrowers to real estate agents vetted by loanDepot.
LoanDepot is the second largest non-bank consumer lender in the U.S. after Quicken Loans. It recently spent $80 million to upgrade its technology and Mello was introduced last March.
Anthony Hsieh founded LoanDepot in 2010; it has more than $1 billion in annual sales and 6,000 employees.