Fix-and-flip mortgage provider LendingHome will be renamed Kiavi in the coming months, a name that represents the appreciation of the country's aging housing stock.
The new name is the English phonetic representation of the Italian word "chiave", which means "key".
"Looking ahead, we see an opportunity to further expand the way we support real estate investors as we believe our approach can benefit all aspects of the investment lifecycle," said CEO Michael Bourque. "LendingHome becomes Kiavi to better express our commitment to real estate investors than just being seen as a lender."
The company expanded from fix-and-flip in 2019 to loan out investors buying properties for redevelopment and rental. Next, the company launched the real estate marketplace for investors to buy and sell houses in 2020.
This year it launched a pilot portfolio rental home loan; The origins included a $ 9.3 million refinancing of a single family rental community in Florida for Pintar Investment. That loan helped increase LendingHome's volume to $ 219 million in March, with production topping $ 200 million in the first month.
In August, LendingHome completed a revolving securitization of unrated residential transition loans for $ 388 million. It is the company's sixth transaction of its kind, the first being in 2019. In addition, six fix-and-flip loan securitisations were carried out in 2016 and 2017.
Flip-and-fix activity among types of investor purchases cited as competition for both low-to-mid-income and first-time home buyers declined in the first quarter.
The first quarter ended with 32,526 homes flipped, or 2.7% of all home sales – one in 37 transactions – during the period, the lowest since 2000, according to Attom Data Solutions. That was a decrease from 4.8% or one in 21 sales in the fourth quarter and 7.5% or one in 13 last year.
Gross profit on the typical home flip declined to $ 63,500 nationwide in the first quarter of 2021. That amount fell from $ 71,000 in the fourth quarter of 2020, although it is still up slightly from $ 62,000 in the first quarter of last year.
Flippers used financing to purchase the property on 40.8% of these transactions in the first quarter, compared with 42.3% in the fourth quarter and 40.1% a year earlier.
Of the $ 8.2 billion in real estate that investors bought for refurbishment and resale in the first quarter, $ 3.3 billion was funded. That compares to $ 13.7 billion and $ 5.8 billion in the fourth quarter and $ 14.6 billion and $ 5.7 billion in the first quarter of 2020, respectively.
But the average page turn time accelerated to an average of 159 days in the first quarter, its lowest level since the third quarter of 2013. That was a decrease from an average of 175 days in the fourth quarter and first quarter of 2020.
Since its inception in 2013, LendingHome has raised $ 241 million in capital in a Series E round last December, according to Crunchbase, including $ 75 million from Benefit Street Partners. It has funded $ 7.8 billion in loans during that time.
"We wanted a name that expressed our intelligence, agility and innovative technology base," said Bourque. "Our new brand name and look, which, like our technology, is bespoke for our future and driven by our desire to help real estate investors reach new horizons."
The renaming to Kiavi will take place in the next few months, which will allow the company a smooth transition for its internal teams as well as customers and partners, he added.