SaaS Interviews with CEOs, Startups, Founders

$70m Loaned in One Click Mortgage Lending Business with Jason van den Brand of Lenda.com EP 220

02 Apr 2016

26 min

4865 words

2 speakers

02 Apr 2016

Audio

Description

Jason van den Brand, owner of Lenda, to the podcast. Lenda is a financial services company that lets people refinance their mortgages with greater ease. Listen as Jason shares his company’s astounding start and explains how Lenda is removing the financial middlemen to give their clients more value. Famous 5Favorite Book? – Traction: Get a Grip on Your BusinessWhat CEO do you follow?— Elon MuskWhat is your favorite online tool?—Slack Do you get 8 hours of sleep?— NoIf you could let your 20 year old self know one thing, what would it be? —At the end of the day, it’s all about the network so don’t worry so much about your GPA. Go and meet more people. Time Stamped Show Notes:01:20 – Nathan’s introduction01:30 – Nathan welcomes Jason van den Brand02:20 – Jason’s take on the Quicken Loans Controversy03:34 – About Lenda03:45 – If you go online today, your mortgage is going to end up looking like a big giant stack of paperwork05:10 – “We are an automated underwriting process so we’re predicting what kind of documentation you’re going to need to qualify for the home loan.”06:28 – Loan servicers07:04 – Wells Fargo07:34 – Loans split up after they transmit it09:27 – We are moving toward servicing our own loans10:28 – Currently raised about $3.8M11:02 – Warehouse Line of Credit11:20 – We hold our loans for 6-7 days before they get sold off to the final investor who will actually service the loan11:56 – $25M pipeline13:36 – Almost $70M loans passed from October 2013 to January 201613:50 – How much money Lenda made in 2015 and how did you do it? -$500,000 – we make a margin on the loan amount15:39 – Because we’re building technology, we don’t have loan officers in our model16:50 – Continuously practice vertical integration19:50 – This business model is going to work because it eliminates middle men, and when you do that, you eliminate costs21:05 –@vandenTweet 3 Key Points:The mortgage industry as it exists today is a dinosaur. When you use technology to replace middlemen or redundant people you cut costs dramatically—that savings can be passed back the consumer.We can make this business model and completely remove all the middle men in the transactionResources Mentioned:Lenda – Jason’s companyWells Fargo – a loan servicer Jason mentionedWarehouse Line of Credit – the credit line Lenda is usingHost Gator - Powerful web hosting made easy and affordable. CreditsShow Notes provided by Mallard Creatives The Top is FOR YOU if you are: A STUDENT who wants to become the CEO of a $10m company in under 24 months (episode #4) STUCK in the CORPORATE grind and looking to create a $10k/mo side business so you can quit (episode #7) An influencer or BLOGGER who wants to make $27k/mo in monthly RECURRING revenue to have the life you want and full CONTROL (episode #1) The Software as a Service (SaaS) entrepreneur who wants to grow to a $100m+ valuation (episode #14). Your host, Nathan Latka is a 25 year old software entrepreneur who has driven over $4.5 million in revenue and built a 25 person team as he dropped out of school, raised $2.5million from a Forbes Billionaire, and attracted over 10,000 paying customers from 160+ different countries. Oprah gets 60 minutes or more to make her guests comfortable to then ask tough questions. Nathan does it all in less than 15 minutes in this daily podcast that's like an audio version of Pat Flynn's monthly income report. Join the Top Tribe at http://NathanLatka.com/TheTop

Chapters

1. What is the main topic discussed in this episode? 2. What is Lenda and how does it change mortgage lending? 3. What was Jason's perspective on the Quicken Loans controversy? 4. How does Lenda's automated underwriting process work? 5. What are the financial benefits of using Lenda for consumers? 6. How much funding has Lenda raised so far? 7. What business model does Lenda follow to eliminate middlemen? 8. How does Lenda generate revenue and what are its profit margins?

Featured

Nathan Latka

Jason van den Brand

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.031 - 15.773 Nathan Latka

This is The Top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base. You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have.

Chapter 2: What is Lenda and how does it change mortgage lending?

16.274 - 18.397 Nathan Latka

I'm now at $20,000 per top.

Chapter 3: What was Jason's perspective on the Quicken Loans controversy?

18.417 - 21.201 Nathan Latka

Five and six million. He is hell-bent on global domination.

Chapter 4: How does Lenda's automated underwriting process work?

21.261 - 46.146 Nathan Latka

We just broke our 100,000 unit sold mark. And I'm your host, Nathan Latka. Okay, Top Tribe, remember, every Monday I give one of you $100 to invest in your idea to help get it to the top. To enter, subscribe to the podcast on iTunes now and then text the word Nathan to 33444 to prove it. Again, that's Nathan to 33444 to prove it.

Chapter 5: What are the financial benefits of using Lenda for consumers?

46.847 - 51.756 Nathan Latka

Last week's winner was Mike Shcherbakov. Mike runs his own internet business.

Chapter 6: How much funding has Lenda raised so far?

51.776 - 84.061 Nathan Latka

He's doing between 100 and 500K per year. He's a blogger, author, and influencer building his business listening to the top. Top Trap, coming up tomorrow morning, you're going to hear from Ray Edwards. He's a best-selling author, and he breaks down the magic words that make people buy. He is the world's most expensive and famous copywriter. Okay, Top Tribe, good morning, good morning.

84.081 - 88.086 Nathan Latka

I'm enjoying a nice tea this morning, and I'm hoping you're enjoying your drive to work.

Chapter 7: What business model does Lenda follow to eliminate middlemen?

88.106 - 108.473 Nathan Latka

You're gonna love our guest. His name is Jason Vandenbrand, and he is the co-founder and CEO of Lenda, a simple, transparent, end-to-end consumer borrowing solution for mortgage. With 11 years of domain expertise, Jason is passionate about using tech to automate the home lending process by cutting out bankers,

108.453 - 116.674 Nathan Latka

and their commissions, along with eliminating telemarketing and excessive paperwork from the process. Jason, are you ready to take us to the top?

118.478 - 120.403 Jason van den Brand

I absolutely am.

120.518 - 139.81 Nathan Latka

Quicken Loans is getting blown up for their Super Bowl ad where they essentially are saying they're helping folks get mortgages super fast. The internet is saying, great, you're just trying to create another 08. I'm curious from your perspective and what Lenda does, what's your take on the controversy?

140.515 - 144.641 Jason van den Brand

Oh, I think the controversy is, is, uh, is absolutely correct.

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Chapter 8: How does Lenda generate revenue and what are its profit margins?

144.721 - 166.455 Jason van den Brand

I think that Quicken went out there and is trying to target millennials. And I think they quickly forgot that, uh, millennials are really not into consumerism. Uh, don't tell me that I should go out there and buy a ton of stuff that I really don't need. I don't want more blenders. I don't want more couches. I want a nice, easy lifestyle and a great community. And, um,

167.043 - 194.893 Jason van den Brand

Does that lead ultimately to another 08? I don't think so. Now that they screw the pooch on the marketing message, absolutely. But does that lead to another 08? Not today. Underwriting standards for mortgage, for buying home loans are actually back to normal levels. All income is validated. Credit criteria is actually sane. Yep.

195.014 - 206.597 Jason van den Brand

So things that happened in the noughties, you know, 01 to 07, it doesn't exist today. So that kind of level of bubble just is not there.

206.798 - 213.672 Nathan Latka

So tell us now about Lenda. What do you guys do specifically? And then let's get into how you guys generate revenue.

213.922 - 239.083 Jason van den Brand

Yeah, so we're an online marketplace lender. We focus strictly today on the refinance market, and we're in California, Washington, and Oregon states. Washington, okay, state, yeah. And so the best way to think about it from a consumer perspective is if you go online today, which sadly includes Quicken Loans, Your mortgage is going to end up looking like a big giant stack of paperwork.

239.163 - 260.517 Jason van den Brand

It is extraordinarily frustrating. Communication is lacking. It takes 60 days to get the deal done. And as a consumer, you're paying for it. You're paying upwards of $7,500 in fees and fees that are baked into your interest rates. So what Lenda has essentially done is taken that paperwork process, allowed consumers to find out what they qualify for in seconds,

260.497 - 277.656 Jason van den Brand

and actually proceed through the process to fill out an application, pull their credit and make sure that they actually qualify for this loan before they go back and forth and deal with telemarketing and all the paperwork that ends up coming down through the process.

277.677 - 293.335 Nathan Latka

Jason, does this have to be for primary living place or can investors use this? You can do primary, you can do second home, you can do investment properties. Oh, interesting. Yeah. So listen, I am buying properties so fast right now to make your head spin. And I'll tell you what, I'm a millennial. I'm 26.

293.976 - 308.053 Nathan Latka

The last thing I want to do is be responding to these emails I'm getting from the bank with a list of like 300 pieces of paperwork that I don't even know the names of that they want. And it's so slow. It sounds like you're taking a lot of this friction out of the process.