i’m writing this note just hours after the announcement of Mike Cagney’s immediate resignation as CEO of marketplace lender Social Finance. It’s quite the coincidence, given the subject of this month’s cover story.
Cagney has been accused of fostering a workplace culture that’s hostile to women and the company he co-founded faces a lawsuit over claims of sexual harassment and fraudulent actions by managers. SoFi originally said Cagney would depart at the end of the year, but it appears the heightened scrutiny and negative publicity became too much of a distraction for the company.
SoFi has become a household name among marketplace lenders, having originated more than $20 billion in student loans, mortgages and personal loans and attaining a $4.3 billion valuation since its founding in 2011. But it’s far from the only company seeking to disrupt traditional lending and investment channels.
As this month’s cover story explains, entrepreneurs like Matt Humphrey, CEO of LendingHome, are merging fintech, marketplace lending and traditional mortgage strategies to make capital more competitive.
Discussions about the competitive differentiators between marketplace lenders and the mortgage industry’s established incumbents often focus on the new technologies that financial startups bring to bear to provide a better customer experience and more efficient back office operations.
What’s often overlooked is how the funding strategies that marketplace lenders employ also create new areas to compete in both traditional single-family residential lending and private-money mortgage originations.
If you’re reading this before or during the Mortgage Bankers Association’s Annual Convention & Expo in Denver, I hope you’ll stop by our booth in the exhibit hall and say hello to everyone on hand from the National Mortgage News team. We love connecting with our longtime readers and are always excited to meet new industry professionals!
Editor in Chief