Online Lenders

SoFi restructures digital mortgage approach, lays off staff

  • SoFi isn't pulling out of the mortgage business.
  • It's restructuring its workforce to outsource origination.
close

Email a Friend

SoFi restructures digital mortgage approach, lays off staff

About 100 employees at online lending startup SoFi are going to be laid off.

SoFi isn’t exiting the online mortgage space — it has plans to dramatically expand its mortgage business in 2019. But it is moving away form directly underwriting loans.

The layoffs will result in a 7% cut to the company’s current staff of close to 1,400 employees. The personnel cuts are set solely in the company’s mortgage department.

SoFi is bleeding money: The company’s financial struggles have been well-documented this year. SoFi has lost money over the past two quarters, with losses accumulating to $12 million over the third quarter. To date the company has raised a total of $2 billion in funding and is reportedly worth over $4 billion.

Tearsheet’s Take: SoFi isn’t the only mortgage lender to experience cutbacks. Other recent staffing cuts including JPMorgan laying off 400 employees in its consumer home-lending department, and Movement Mortgage letting go of 180 employees point to layoffs across the online mortgage lending sector.

Quicken’s Rocket Mortgage, which originated $20 billion in the first quarter of 2018, is an exception in the online mortgage space where no one else has really cracked the user acquisition nut.

0 comments on “SoFi restructures digital mortgage approach, lays off staff”

Online Lenders

‘PPP may end up being the straw that breaks the camel’s back’: Small businesses increasingly turn to smaller banks and fintechs during the pandemic

  • SMBs are finding larger banks busy servicing larger clients rather than their applications for government aid.
  • Smaller banks and fintechs are attracting new customers with technology and a stronger orientation toward service.
Sara Toth Stub | June 05, 2020
Online Lenders

Goldman Sachs gets into point of sale financing with MarcusPay

  • Marcus by Goldman is continuing its foray into consumer finance with a new installment loan product.
  • Launched with Jet Blue, the bank is betting MarcusPay resonates with consumers.
Zoe Murphy | April 13, 2020
New banks, Online Lenders

Customers Bank turns to OakNorth to help monitor its loans for COVID-19 crisis

  • Customers Bank, with $11 billion in assets, is using OakNorth's loan platform.
  • The two companies are looking for customer insights and actionability during the pandemic.
Zoe Murphy | April 10, 2020
Online Lenders

CIT revamps B2B point-of-sale lending platform

  • CIT upgrades its point of sale system to accelerate purchase finance.
  • The company rolls out APIs to ease integration.
Michael Deleon | February 17, 2020
Online Lenders

4 charts that show just how big a deal student debt is

  • Student debt hit historical highs in 2019 with $1.5 trillion in outstanding loans.
  • A new survey by Pillar asked people just how far they'd go to get rid of their loans.
Zoe Murphy | January 22, 2020
More Articles