GoodLeap

Last updated
GoodLeap
Formerly
  • Paramount Equity
    (2003–2017)
  • Loanpal (2017–2021)
Company type Private
Industry Finance and Mortgage
Founded2003;21 years ago (2003)
Founders
Headquarters San Francisco, California, U.S.
Key people
Hayes Barnard
(Chairman and CEO)
John Shrewsberry
(CFO)
Daniel Lotano
(CSO)
Services
  • Residential solar and battery storage loans
  • FHA insured loan
  • Conventional loans
  • Refinance and home purchase loans
  • VA loans
  • Fintech
RevenueUS$361 million (2020) [1]
Number of employees
1,300
Website goodleap.com

GoodLeap, formerly Loanpal, [2] is a finance technology company headquartered in San Francisco, [3] that provides financing options for the residential solar energy industry.

Contents

The company employs about 1,300 people. [4] It has locations in Roseville, San Francisco, Irvine, Phoenix, Kansas City, and Bentonville, Arkansas.

History

Paramount Equity Mortgage, founded in 2003 by Hayes Barnard, Jason Walker and Matt Dawson. [5] [6] The company was incorporated in California to provide residential mortgage loans. [7] Although they launched in California's Sacramento Valley, the company lends nationwide. [8]

In 2006, the founders launched an insurance company focused on auto and home insurance. After over ten years offering insurance services, the company sold its insurance company to Brown and Brown.[ year needed ][ citation needed ]

In 2009, Paramount Solar was established. [7] In 2013, Paramount Solar was sold to SolarCity (now Tesla Energy) in a transaction valued at approximately $120 million. [9] In 2011, the company took on an equity investment from Guthy-Renker. [10]

In December 2017, Paramount began originating residential solar loans and later rebranded as Loanpal. [7]

In 2019, Loanpal announced a partnership with PenFed Credit Union. [11] In 2019, Loanpal was responsible for 30% of all new residential loans in the U.S. [11] [12]

In 2020, they launched their online platform. [13] [14]

In June 2020, Goldman Sachs securitized $459 million worth of Loanpal loans they had previously purchased and expanded their warehouse facility to $300 million with Loanpal. Goldman Sachs also committed to buying $320 million in loans from Loanpal. [15] By October 2020, the company had funded over $4.5 billion in solar loans [16] and closed a securitization of $434 million worth of Loanpal loans in November 2020 [17] and was responsible for 41% of the solar loan market in the U.S. and was the top solar lender in the country. [18]

In January 2021, Loanpal raised $800 million in a funding round led by New Enterprise Associates, West Cap Group, Brookfield Asset Management, and Riverstone Holdings. [19] [20] The company received an additional $800 million in funding from MSD Partners, BDT Capital Partners and Davidson Kempner in October 2021. [21] Between January and October 2021 the company had raised a total of over $1 billion in funding. [22]

In June 2021, Loanpal rebranded to GoodLeap. [2]

Leadership

Hayes Barnard is currently the Chairman and CEO. [23] [24]

In December 2022, GoodLeap formed an advisory council made up of celebrities and business veterans, including Tony Gonzalez, Edward Norton, Shailene Woodley, and Jeff Immelt. [25]

As of December 2023 John Shrewsberry, former CFO of Wells Fargo, is chief financial officer. [26] [27] And Daniel Lotano, former president of EverBright, as chief strategy officer. [28]

Ownership structure

The company offers consumers access to a variety of residential lending products including mortgages, solar financing and home improvement loans. [29] As of 2023, the company has loaned more than $23 billion to over 380,000 households upgrading to sustainable power across 50 states. The default rate on their loans is less than 1%. The company is an approved seller-servicer of both government sponsored entities, Fannie Mae and Freddie Mac, and has raised over $2.25 billion in funding for its consumer finance loans. [30]

Controversy

As of 2024, dozens of litigation and arbitration cases are in process in which GoodLeap customers have alleged they were tricked into taking out onerous loans, were misled about the terms of the loans, or were signed up for a loan without their knowledge. [31]

On March 8, 2024 the Minnesota Attorney General filed suit against GoodLeap and three other lending companies (Sunlight Financial, Solar Mosaic, and Dividend Solar Finance—a subsidiary of Fifth Third Bank), the lawsuit alleges the lenders violated Minnesota state laws against deceptive trade practices, deceptive lending, and illegally high rates of interest. [32] [33]

See also

GivePower

Related Research Articles

<span class="mw-page-title-main">International Finance Corporation</span> World Bank Group member financial institution

The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of the World Bank Group and is headquartered in Washington, D.C. in the United States.

<span class="mw-page-title-main">Fannie Mae</span> Government-backed financial services company

The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the New Deal, the corporation's purpose is to expand the secondary mortgage market by securitizing mortgage loans in the form of mortgage-backed securities (MBS), allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on locally based savings and loan associations. Its brother organization is the Federal Home Loan Mortgage Corporation (FHLMC), better known as Freddie Mac.

<span class="mw-page-title-main">Fifth Third Bank</span> American bank holding company

Fifth Third Bank, the principal subsidiary of Fifth Third Bancorp, is a bank holding company headquartered in Cincinnati, Ohio. Fifth Third operates 1,088 branches and 2,104 automated teller machines, which are in 11 states: Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, South Carolina, Tennessee, and West Virginia. It is on the list of largest banks in the United States and is ranked 321st on the Fortune 500. The name "Fifth Third" is derived from the names of the bank's two predecessor companies, Third National Bank and Fifth National Bank, which merged in 1909.

<span class="mw-page-title-main">Freddie Mac</span> American government-sponsored enterprise

The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is a publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons, Virginia. The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with its sister organization, the Federal National Mortgage Association, Freddie Mac buys mortgages, pools them, and sells them as a mortgage-backed security (MBS) to private investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases. The name "Freddie Mac" is a variant of the FHLMC initialism of the company's full name that was adopted officially for ease of identification.

Housing Development Finance Corporation was an Indian private sector mortgage lender based in Mumbai. It was the biggest housing finance company in India. It also had a presence in banking, life and general insurance, asset management, venture capital and deposits through its associate and subsidiary companies.

Bank of America Home Loans is the mortgage unit of Bank of America. It previously existed as an independent company called Countrywide Financial from 1969 to 2008. In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion. In 2006, Countrywide financed 20% of all mortgages in the United States, at a value of about 3.5% of the United States GDP, a proportion greater than any other single mortgage lender.

An asset-backed security (ABS) is a security whose income payments, and hence value, are derived from and collateralized by a specified pool of underlying assets.

<span class="mw-page-title-main">Canada Mortgage and Housing Corporation</span> Canadian national housing agency

Canada Mortgage and Housing Corporation is Canada's federal crown corporation responsible for administering the National Housing Act, with the mandate to improve housing by living conditions in the country.

A commercial mortgage is a mortgage loan secured by commercial property, such as an office building, shopping center, industrial warehouse, or apartment complex. The proceeds from a commercial mortgage are typically used to acquire, refinance, or redevelop commercial property.

A structured investment vehicle (SIV) is a non-bank financial institution established to earn a credit spread between the longer-term assets held in its portfolio and the shorter-term liabilities it issues. They are simple credit spread lenders, frequently "lending" by investing in securitizations, but also by investing in corporate bonds and funding by issuing commercial paper and medium term notes, which were usually rated AAA until the onset of the financial crisis. They did not expose themselves to either interest rate or currency risk and typically held asset to maturity. SIVs differ from asset-backed securities and collateralized debt obligations in that they are permanently capitalized and have an active management team.

Guthy-Renker is a California-based direct-response marketing company that sells health and beauty products directly to consumers through infomercials, television ads, direct mail, telemarketing, e-mail marketing, and the Internet. Many of its products are endorsed by celebrities including actresses and musicians

The subprime mortgage crisis impact timeline lists dates relevant to the creation of a United States housing bubble and the 2005 housing bubble burst and the subprime mortgage crisis which developed during 2007 and 2008. It includes United States enactment of government laws and regulations, as well as public and private actions which affected the housing industry and related banking and investment activity. It also notes details of important incidents in the United States, such as bankruptcies and takeovers, and information and statistics about relevant trends. For more information on reverberations of this crisis throughout the global financial system see 2007–2008 financial crisis.

Collateralized loan obligations (CLOs) are a form of securitization where payments from multiple middle sized and large business loans are pooled together and passed on to different classes of owners in various tranches. A CLO is a type of collateralized debt obligation, or CDO.

PACE financing is a means used in the United States of America of financing energy efficiency upgrades, disaster resiliency improvements, water conservation measures, or renewable energy installations in existing or new construction of residential, commercial, and industrial property owners. Depending on state legislation, PACE financing can be used to finance water efficiency products, seismic retrofits, resiliency, and other measures with social benefits.

<span class="mw-page-title-main">Hayes Barnard</span> American entrepreneur and philanthropist

Hayes Barnard is an American entrepreneur. He is currently the founder, chairman, and CEO of GoodLeap, a technology-based finance company. Barnard is also the founder, chairman, and CEO of GivePower, a nonprofit that facilitates solar powered projects to provide clean water and energy systems to underserved communities.

<span class="mw-page-title-main">Mosaic Inc.</span> Solar crowdfunding company

Solar Mosaic is a clean energy fin-tech company based in Oakland, California. Founded in 2010, Mosaic created its initial business model using crowdfunding principals to offer loans for commercial solar development projects. After shifting its model in 2014, Mosaic is now focused on financing residential solar projects by leveraging third party capital partners. Through this model, the company aims to democratize the social and environmental benefits of clean energy.

<span class="mw-page-title-main">Wyndham Capital Mortgage</span> American mortgage lending company

Wyndham Capital Mortgage Inc. was an American mortgage company based in Charlotte, North Carolina, providing residential mortgage loans through a direct-to-consumer, online lending model. The company was acquired by San Francisco-based personal finance company, SoFi, in April 2023.

SoFi Technologies, Inc. is an American personal finance jason eric puebla and fintech company founded at Stanford University in 2011. It offers loans, credit cards, investing, insurance and banking products, while also serving financial institutions via its tech platform. SoFi reports 8.8M clients and 158M platform accounts as of 2024.

Kenya Mortgage Refinance Company Plc (KMRC), is a financial services company in Kenya, that specializes in lending to other financial institutions in the country, for onward lending in form of mortgages. In addition, KMRC buys good mortgages from other lenders to make more money available to banks for onward lending to eligible homeowners. It also plans to "invest in government debt securities or other guaranteed debt".

<span class="mw-page-title-main">Vishal Garg (businessman)</span> American businessman

Vishal Garg is an Indian-American entrepreneur. He is the chief executive officer of mortgage lending company Better.com and previously co-founded the student loan company MyRichUncle.

References

  1. ↑ "GoodLeap Overview". bizjournals.com. 2021.
  2. 1 2 "Solar Financier Loanpal Eyes Home-Greening Market With New Name". www.bloomberg.com. Retrieved 2021-06-03.
  3. ↑ Brown, Mike (May 4, 2019). "The 3 Main Trends Driving the Imminent Solar Energy Revolution". Inverse. Retrieved August 23, 2024.
  4. ↑ "Life at GoodLeap". GoodLeap.com.
  5. ↑ "Paramount Equity Mortgage grows by staying focused on core business". The Business Journals Sacramento. 2017-09-22. Retrieved 2020-02-27.
  6. ↑ "California Lender Paramount Equity Pairs with Infomercial Creator Guthy-Renker". American Banker. 2011-03-08. Retrieved 2020-02-27.
  7. 1 2 3 "Tesla's solar retreat provides opening for Loanpal's return". Asset Securitization Report. 2019-03-07. Retrieved 2020-03-02.
  8. ↑ "Loanpal, LLC". NMLS Consumer Access. Retrieved 2020-03-17.
  9. ↑ "SolarCity Buys Paramount Solar To Boost Homeowner Outreach". Forbes. Retrieved 2020-03-17.
  10. ↑ "Infomercial Icon Guthy-Renker to Enter the Mortgage Business". National Mortgage Professional Magazine. 2011-03-08. Retrieved 2020-03-25.
  11. 1 2 "PenFed Credit Union, Loanpal partner on residential solar financing options". Solar Power World. 2019-12-02. Retrieved 2020-03-03.
  12. ↑ "Ex-SolarCity Execs Are Baking Solar Loans Into Mortgages". Bloomberg. Retrieved 2020-03-03.
  13. ↑ "Loanpal secures more funding for residential solar loans". Solar Power World. 2020-01-13.
  14. ↑ Misbrener, Kelsey (13 January 2020). "Loanpal secures more funding for residential solar loans". Solar Power World. Retrieved 2020-04-23.
  15. ↑ "Goldman to Buy $320 Million of Loans From Solar Lender Loanpal". www.bloomberg.com. Retrieved 2020-06-11.
  16. ↑ "In a Year of Turmoil, Residential Solar Assets Are a Safe-Haven Investment". www.greentechmedia.com. Retrieved 2020-12-16.
  17. ↑ "Loanpal completes largest securitization of residential solar loans | Solar Builder". Solar Builder Magazine. 2020-11-30. Retrieved 2020-12-16.
  18. ↑ Levy, Ari (2021-01-27). "Exec who quit SolarCity now runs the leading lender for solar installations". CNBC. Retrieved 2021-01-29.
  19. ↑ "Renewable investment wave continues as solar lending company Loanpal raises $800 million". TechCrunch. Retrieved 2021-02-03.
  20. ↑ "Loanpal raises $800 million to grow home efficiency financing". Sacramento Business Journal. 2021-01-27. Retrieved 2021-02-03.
  21. ↑ Wade, Will (13 October 2021). "GoodLeap Gets $800 Million Funding for Sustainable Home Push". Bloomberg.
  22. ↑ Matt, Wirz; Driebusch, Corrie (13 October 2021). "Tech Moguls Back GoodLeap's Green Housing Push With $12 Billion Valuation". Wall Street Journal.
  23. ↑ "This former SolarCity exec is trying to reinvent 2 parts of the solar business". Business Insider. Retrieved 2020-03-25.
  24. ↑ "PenFed Credit Union Teams With Loanpal on Solar Installation Loans". NMP. 2019-12-02. Retrieved 2020-04-08.
  25. ↑ Boudreau, Catherine (December 28, 2022). "These Hollywood celebs and an NFL Hall of Famer want you to electrify your home to help solve the climate crisis". Business Insider.
  26. ↑ Jackson, Amber (2023-11-22). "Top 10 CFOs in the USA". fintechmagazine.com. Retrieved 2024-08-13.
  27. ↑ Broughton, Kristin (June 4, 2024). "Wells Fargo Ex-CFO John Shrewsberry Readies GoodLeap for Next Growth Phase". Wall Street Journal. Retrieved August 12, 2024.
  28. ↑ "People on the move: Omnidian, kWh Analytics, Kore Power and more". pv magazine USA. 2023-12-06. Retrieved 2024-08-23.
  29. ↑ "Loanpal Rockets to Second-Largest Solar Loan Provider in the US". Green Tech Media. 2019-04-22.
  30. ↑ Edgecliffe-Johnson, Andrew (11 June 2023). "Fintech founder Hayes Barnard: half the organization thought 'this guy's out of his mind'". Financial Times.
  31. ↑ Semuels, Alana (25 January 2024). "The Rooftop Solar Industry Could Be On the Verge of Collapse". Time.
  32. ↑ Office of the Attorney General of Minnesota (5 April 2024). "Minnesota v. GoodLeap LLC, Sunlight Financial LLC, Solar Mosaic LLC, and Dividend Solar Finance LLC" (PDF). US District Court for the District of Minnesota. Archived (PDF) from the original on 27 May 2024. Retrieved 27 May 2024.
  33. ↑ Weaver, John Fitzgerald (26 April 2024). "Minnesota sues GoodLeap, Sunlight, Mosaic and Dividend over dealer fees". PV Magazine. Archived from the original on 30 April 2024. Retrieved 27 May 2024.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.