Commercial real estate marketplace lending platform Money 360 originated loans of $35.6 million in December; the bridge loans ranged from $2.5 million to $12.5 million with durations between one and two years; according to Founder and CEO Evan Gentry, the firm expects momentum to continue in 2017 with performance from the platform a factor of increased demand from borrowers and investors for commercial real estate financing. Source
Sharestates is raising capital for a Series A funding round on SeedInvest; planning for potential investment of $3 million in preferred equity; Sharestates provides real estate investment opportunities and access to capital on its platform; has total loan originations of $178 million. Source
UK online lender Funding Circle has announced it will be slowing its property lending with plans to fully end the product by mid 2018; the firm is primarily focused on SME lending and says the refocused strategy will help it to increase SME lending and shift its resources for international expansion; property loans have previously only been available to UK borrowers and the product has accounted for approximately 5% of the company's revenue. Source
Landbay will add Positive Lending to its distribution network; Landbay has a comprehensive suite of services for its intermediaries and is also supporting them in advance of the UK's September PRA portfolio landlord changes; Landbay is a UK specialist buy to let mortgage lender authorized by the FCA and involved with the P2PFA as one of its members. Source
A report from Crowdfund Insider says AssetAvenue has stopped originating loans; the California-based marketplace lender was providing property loans through its digital platform; firm raised $11 million in a Series A funding round in 2015; the firm's loans were primarily averaging approximately $2 million and the platform was open to all types of investors. Source
Patch Homes has officially launched after operating in private beta; the platform seeks to allow homeowners to greater utilize the equity in their homes; by offering investment versus a home equity loan, homeowners contract with Patch Homes for capital proceeds that can be used for any type of financing needs; Patch Homes then shares in the gains and losses on the home's value over the contracted timeframe; Patch Homes has identified a $4.5 trillion home equity market in the US; along with its launch it also announced $1 million in fundraising to support its growth and to expand its offering beyond California. Source
Revolut will now offer its customers investment at property platform Bricklane; investors can invest in Bricklane tax efficient individual savings accounts for a minimum of 100 British pounds ($122); Bricklane investors receive rental income and capital appreciation from the properties they invest in. Source
Research from TransUnion suggests that the Federal Housing Finance Agency’s (FHFA) move to a bi-merge system could significantly impact both consumers and lenders while providing little benefit.
The Debt Exchange notes how US regulators are flagging some concern with commercial real estate investment concentrations, even as pricing shows steady demand for properties; regulators are finding bank ratios of commercial real estate loans to total risk-based-capital are approaching 300% in certain property markets (300% is possible through leverage) and loan-to-deposit ratios are approaching 100%, both flags on the risk side; the article notes that loan sales, to private investors as well as through securitizations, are an effective way to reduce these ratios. Source
UK debt crowdfunding platform Property Crowd has announced the launch of its innovative finance individual savings account (IFISA); the minimum investment for the IFISA is 5,000 British pounds ($6,220) and the account will target returns of 7% to 10%; Property Crowd will compete for investment across the alternative debt market however its offerings vary slightly from traditional P2P lenders since the firm's debt products include structured real estate bonds. Source