LoanDepot's new marketing partnership with Major League Baseball announced Monday shows that a recent wave of IPOs with non-bank mortgages is fueling interest in sports affiliations.
The terms of the agreement provide that creditDepot, which recently filed for an initial public offering, will advertise its brand, products and services through digital outlets, television and radio advertisements. The monetary terms were not disclosed.
According to creditDepot, the agreement also provides for "additional partnership activities and community-based initiatives that will be announced at a later date".
"We are extremely excited to join the MLB family as the Official Major League Baseball Mortgage Provider," said Anthony Hsieh, founder and CEO of LoanDepot, in a press release released on Monday. "LoanDepot and MLB each share a commitment to customers, fans and communities."
Both private and public mortgage lenders have shown an increased interest in building brand awareness through sports-related signage and broadcasts, even as the pandemic limits personal participation.
This is mainly because, with the advent of digital mortgages, "the future customer seems to be just as attracted to a brand name as," Hey, I have a friend who does a great job with mortgage credit, "Bill Cosgrove. President and CEO of Union Home Mortgage said in an interview last fall. The extremely low interest rates, which have led to an increase in originations, also play a role.
The mortgage industry has long been into sports connectivity and its use by digital pioneer Rocket Mortgage has generated additional interest. Rocket's forward-looking decision to go public last year appeared to influence other non-banks to go public and carry out joint ventures with special purpose vehicles.
Rocket paved the way for wider use of multi-year sports marketing agreements in the mortgage industry last January when it signed an agreement with the National Football League.
Rocket's local competitor United Wholesale Mortgage first invested in regional Super Bowl ads early last year. UWM went public this month.