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.
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.

Online lenders, Podcasts

TS Lending Podcast 3: How SMB lenders scale — JPM Chase gets into POS lending — Amazon thinking about lending?

  • Dan and Zack talk about the techniques top SMB lenders use to grow at scale.
  • Also, decentralized credit scoring? Dan explains what it is and how it's being used.
Tearsheet Editors | March 20, 2019
Online lenders, Podcasts

Using fintech to improve financial wellness with Salary Finance’s Dhiren Master

  • Employees with financial worries aren't as productive or engaged.
  • Salary Finance works with employers to help their people get out of debt and start saving.
Tearsheet Editors | March 18, 2019
Online lenders

How online lenders attract and service the evolving SMB borrower

  • SMBs always need money to finance their businesses.
  • But how they shop for loans and their education about finance has changed.
Michael Deleon | March 13, 2019
Online lenders

Forget about digital marketing, SMB lenders double down on partnerships for growth

  • Direct and digital marketing play a role in growing underwriting for top SMB lenders.
  • But it's partnerships that provide the real key to growth.
Michael Deleon | March 06, 2019
Online lenders

Scooch on over Affirm: JPM Chase enters purchasing financing market

  • JPM Chase plans to enter the point of sale lending market.
  • With 'My Chase Plan', cardholders will be able to finance purchases of $500 and above.
Michael Deleon | March 05, 2019
More Articles