Edi­tor’s Note

National Mortgage News - - Contents -

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!

Austin Kil­gore

Edi­tor in Chief

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