Startup to Stardom. July 18, 2016

Transcription

1 Startup to Stardom July 18, 2016

2 Our vision 美国正在开启贷款业的新时代 它将不再是多年形成的邻家银行模式 科技 的变化, 市场的潮流, 以及顾客对信贷的需求, 正在为非银行贷款创造出全 新的机会 loandepot 将受益于这市场格局的变迁, 而成为美国首屈一指 的消费者贷款公司 谢礼谦董事长兼首席行政官 America is at the threshold of a new generation of lending, and it won t be the neighborhood bank as it has been for decades. Changes in technology, market trends and consumer demand for credit are creating new opportunities for non-bank lenders. loandepot is poised to capitalize on the evolving landscape to become America s premiere consumer lender. Anthony Hsieh Chairman and Chief Executive Officer 2 2

3 Our connection Immigrated to the US in 1974 at age of 8 The life we left behind in China The optics of an immigrant Day 3 in U.S. I started 4 th grade in rough LA neighborhood Facing Significant Barriers Language Cultural Stereotypes Working in my parent s liquor store where I was robbed twice at gunpoint My first exposure to lending came at age 10, translating for my parents in negotiating their home loan 3

4 Modern lending 4 4

5 loandepot by the numbers Leading Technology-Enabled U.S. Consumer Lending Platform Corporate Profile: Headquartered near Irvine, CA Launched in 2010 ~5,200 employees Capital-lite model Profitable since 2012 Privately held Nationwide Distribution: Licensed home loan lender in 50 states. 1,700+ licensed loan officers 9,500 individual state licenses 4 web fulfillment centers 150+ local offices across the U.S. 550,000+ new leads each month Lending Infrastructure: Product suite includes mortgage, home equity and personal loans ~$29 billion of loan originations for 12ME Originating over $3.0Bn/mo today $29 billion originated volume for 12ME Housing crisis resets consumer borrowing and lending landscape 1,700+ licensed loan officers loandepot conceived and launched >$80 billion originated volume since launch 1 2 nd largest non-bank consumer lender Scale to 2 nd largest non-bank consumer lender in U.S. 118% year/year origination growth in FY Expansion into nonhome loan credit products and unsecured consumer loans 5 1. Based on originated volume through mid-july

6 Lending platform built for post-crisis environment Consistent market share growth in US residential lending; now supporting product expansion Launched home lending offering via loandepot.com in January Exceeded 1,000 funded units in November Approval to offer Agency home loans Approval to offer FHA/VA home loans Approval for 50 th state license Acquired imortgage, launching Distributed Retail offering Launched LD Wholesale Division to continue to grow customer relationships Acquired MortgageMaster to grow Distributed Retail offering Expanded offering to include personal and home equity loans ~$60 Bn (1) 275,000+ customers $31.7 Bn 137,243 customers $1.5 Bn 6,134 customers $4.1 Bn 16,865 customers $10.1 Bn 40,727 customers $18.5 Bn 78,286 customers Cumulative Home Loan Dollars and Units Funded Since Inception $1.5 Bn in Fundings $2.6 Bn in Fundings $6.0 Bn in Fundings $8.4 Bn in Fundings $13.2 Bn in Fundings ~$28 Bn in Fundings (1) 70% Growth YoY 129% Growth YoY 40% Growth YoY 57% Growth YoY 118% Growth YoY (2) 6 (1) As of Dec. 31, (2) FYE 2015 relative to FYE 2014.

7 Product suite dissolves lines between mortgage & non-mortgage Uniquely positioned non-bank lender capable of pivoting between secured and unsecured loan products Agnostic to how consumer demand and capital markets demand fluctuates between cycles Platform is capable of delivering across both Home loans are foundation of US consumer household credit, but also has the highest barriers to entry State specific licensing and regulatory oversight US government is main source of liquidity post-crisis Increasing regulatory burdens (loan officer licensing, CFPB, TRID, etc.) Product Suite $9.8 Trillion Addressable Market (1) Home Purchase Loans Rate/Term Refinance Home Loans & Home Equity Loans $8.7 Trillion Personal Loans Cash-out Refinance Home Equity Loans Credit Cards & Other Unsecured Personal Loans $1.1 Trillion Student Auto Loans Loans $1.2 Trillion $1.1 Trillion 7 1. Federal Reserve Bank of New York (Q1 2016).

8 $ in Trillions Consumers are seeking credit again, but from different sources U.S. consumer deleveraging ended in 2012 However, Housing Debt share of 72% is lowest since Q US Consumer Debt Outstanding $ % $12.7 Total Household Debt 80% $12.5 $12.4 $12.2 % Housing Share $ % $12.0 $11.5 $11.7 $11.5 $11.3 $11.5 $ % % of Total $ % 73% $10.5 $ % 8 Source: Federal Reserve Bank of New York (Q1 2016).

9 $ in Billions Filling a void left by disappearance of home equity credit Pre-crisis, home equity borrowing (including cash-out refinance) was a mainstream source of credit for US consumers the market is not as simple as purchase vs. refi Despite recovery in home values across the country, liquidity in this market has not returned US Home Equity & Cash Out Refinance Originations (1) $800 $745 Cash-Out Refinance (Cash-Back Portion Only) $600 $315 $604 Pre-crisis, 70%+ of home equity proceeds were used for debt consolidation or home improvement (2) Home Equity Loans (HELOC & CES) $400 $255 Signs of momentum in % year-overyear growth highest since pre-crisis $200 $- $247 $430 $349 $131 $116 $169 $88 $81 $102 $97 $88 $115 $113 $154 $64 $53 $47 $55 $42 $44 $49 $50 $44 $60 $71 $ Cash-out Refinance data from Black Knight Financial Mortgage Monitor Report, Dec Home Equity data from Inside Mortgage Finance data is TTM as of 9/30/ Wall Street Equity Research / Lending Tree customer survey.

10 $ in Millions $ in Millions Case study: LD Personal Loan launch Launched May months from concept For FY 2015 $353 million originations & 23,000 customers Significant overlap with home loan leads: 78% homeownership 715 FICO Massive Demand $9.1 billion in applied loan volume in 2015 Program Specifics Acquisition Fee 1.00% % Tenor 36 and 60 months Loan Amount $5,000 - $35,000 Interest Rates 5.50% % FICO Score 660+ DTI Less than 40% Monthly Personal Loan Originations FY 2015 Applications $100 $80 $60 $44 $54 $65 $66 $81 $10,000 $8,000 $6,000 $9,100 Conversion <4% $40 $28 $4,000 $20 $- $2 $12 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 $2,000 $- Applications $353 Originations 10

11 Lower Borrower Cost Higher Primed for further product expansion Personal Loans Consolidate credit card debt Finance large purchases Refinance higher-rate loan(s) ~$15,000 average balance Home Equity Loans Home improvement Consolidate credit card debt ~$50,000 average balance Home Loans Purchase Cash-back Refi Rate/Term Refi >$250,000 average balance Simple Complexity Complex Current Solutions Offered Potential Future Solutions 11

12 Systems designed for product cross-sell Retail distribution + marketing scale drive 550,000+ unique leads to LD each month Proprietary lead routing platform provides significant strategic advantage vs. competition Existing Leads Database 12+ million ~$150 MM Annual Marketing Spend Contact Management System Proprietary Dialing, Lead Flow, And Routing System Dedicated Contact Management Team making 500,000+ Calls Each Day Monthly Direct Home Loan Lead Flow 550,000 Unique Leads Customer Contacts Loan Apps Monthly Personal Loan Lead Flow 80,000 Unique Leads Customer Contacts Loan Apps >$3.0 bn home loans funded each month Maximize ROI with Cross Sell >$80 mm personal loans funded each month 12

13 Experienced leadership team Anthony Hsieh Bryan Sullivan Founder, Chairman & CEO EVP, Chief Financial Officer LoansDirect.com E*TRADE Financial Home Loan Center LendingTree PIMCO Goldman Sachs FBR & Co. KPMG Dominick Marchetti Chief Technology Officer Brian Biglin Chief Risk Officer Jeff DerGurahian EVP, Capital Markets Peter Macdonald EVP, General Counsel Experience from High Growth, Technology, and Consumer Finance Companies 13

14 Supported by significant lending infrastructure Management team of experienced operators and lenders through various credit cycles Compliance expertise in the most highly regulated consumer credit product Licensed in 50 states and with all relevant government agencies Sophisticated technology with proprietary loan origination system and data warehouse Established capital markets relationships 14

15 Lessons learned along the way Consumer demand for credit is consistent not a demand problem Leverage technology & process engineering to create efficiencies and reduce fulfillment costs while scaling Continually build and invest in your brand 6.5 year old company w/ $150mm+ marketing budget, and growing Be positioned to access capital flows as credit cycles develop and mature Take advantage of most efficient sources of capital when available including public equity/ipo markets Leverage capital to develop new lending programs and assets for example, non- Agency home loans Barrier to entry is protection against new scale competitors 15

16 Q&A Session