Lendinghome

Market position

Described as one of the nation's top fix-and-flip lenders and, by 2024 volume, the largest US private fix-and-flip lender with $5.5 billion in fix-and-flip originations — reported as more than three times its nearest competitor. Earlier coverage positioned LendingHome as the largest and fastest-growing mortgage marketplace lender and as a competitive threat to traditional mortgage lenders and Better Mortgage.

The company controls the full origination stack in-house rather than retrofitting paper processes online, enabling rate quotes in seconds, applications in about 20 minutes, closings often in 7–14 days, and property-based underwriting that evaluates the asset rather than borrower W-2 income. Automated document requirements, in-house valuation and servicing teams, and property-level pricing across more than 20 factors are cited as further points of distinction.

Technology

Kiavi built a proprietary end-to-end technology stack spanning the mortgage value chain, including online application and pre-qualification, tech-enabled credit models that assess project viability, an ARV (after-repair value) estimation model, machine learning and real-time data for approvals and pricing, a borrower dashboard with loan status visibility, and in-house valuation and servicing. Management stated the platform closed loans about five times faster and at roughly a third of the industry's average processing cost, versus an industry average of just under $8,000 to originate a loan.

Go-to-market

Customers are acquired through a self-serve online platform offering rate quotes in minutes and applications completed digitally, supported by dedicated loan teams, weekly live webinars demonstrating the platform and loan products, and a broker program allowing intermediaries to manage multiple borrower accounts. The company also cites repeat business and referrals, reporting a 35% customer referral rate in 2015 and 75% of 2020 business coming from returning customers.

Residential real estate investors and developers — from first-time flippers and emerging investors to professional and high-volume operators — plus mortgage brokers who manage multiple borrower profiles on the platform. Earlier in its history the company also targeted consumer borrowers and first-time homebuyers with traditional mortgage products.

Geography

Headquartered in San Francisco, California, with offices listed at 1 California St., Floor 17. Lending coverage expanded from 13 states in 2015 and 25 states for the bridge product (14 for personal mortgages) as of early 2019 to 49 states plus Washington, D.C. today; the current state list excludes only loans in states not enumerated on the company's disclosure.

History

LendingHome was founded in October 2013 and spent roughly a year building its technology stack before beginning to lend in April 2014. It raised $11.3 million in Series A (November 2013), $28 million in Series B (September 2014) and $70 million in Series C (April 2015), then $57 million in Series C-2 in October 2017, bringing total equity to $166 million at that point. The company launched a consumer mortgage product for first-time homebuyers in 2017. It ran a marketplace lending product for accredited investors from roughly 2014 until October 2021, when new investment in Platform Notes ceased. On November 16, 2021 it rebranded to Kiavi, with Arvind Mohan serving as CEO.

Risks & controversies

Reporting on the wound-down retail investor product notes an uncured default rate above 2% on active Platform Notes at the time of the October 2021 wind-down — roughly double comparable residential rehab platforms in that period — non-disclosure of property addresses to note investors, LTVs consistently above 65%, and a February 2021 aggregator survey in which no polled investors said they would recommend the platform, citing slow response on defaulted loans and limited information. The same review reports a mixed Better Business Bureau record with three closed complaints in the prior 12 months, four failed-to-respond cases and no BBB accreditation. The retail wind-down was a managed run-off rather than an insolvency.