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

Through software, Drummond Community Bank moves into personal and auto lending

  • The bank will provide its customers with AI-powered personal and auto loans.
  • AI-based lending platforms can give community banks a competitive advantage over larger banks.
Ismail Umar | May 10, 2021
Member Exclusive, Online Lenders

With the cannabis market set to double, lenders hope to capitalize on the opportunity

  • Financing in the space typically has come in the form of equity investments.
  • Federal deregulation would give more lending options to cannabis businesses.
Shehzil Zahid | May 05, 2021
Member Exclusive, Online Lenders, Podcasts

‘We see a lot of whitespace in credit cards for near prime customers’: Avant’s James Paris

  • Avant was one of the first digital lenders.
  • Almost eight years later, CEO James Paris is leading the company into new financial products.
Zachary Miller | December 21, 2020
Member Exclusive, New banks, Online Lenders

Digital lender LendUp launches a challenger bank

  • LendUp has introduced its own challenger bank, Ahead Financials.
  • Ahead will provide digital banking and financial education to emerging middle class consumers.
Rimal Farrukh | December 02, 2020
Member Exclusive, Online Lenders

What Affirm’s IPO and Chase’s new installment product say about the BNPL market

  • Affirm files to go public and Chase unveils BNPL feature My Chase Plan.
  • As the pandemic rages on, BNPL products remain more relevant than ever.
Rimal Farrukh | December 01, 2020
More Articles