Silicon Valley Vies for a Piece of the U.S. Mortgage Market

Jeff Patmont got his home loan on his phone.

The 30-year-old marketing manager for a medical-device company said he did almost everything electronically for the mortgage on his $980,000 home in the San Francisco suburb of Lafayette, California.

“I didn’t want to deal with a bank,” Patmont said. “I signed my offer sheets and loan documents on my phone while I was sitting in a bar.”

Social Finance Inc., a San Francisco-based online lender that refinances government-backed student loans, is originating about $50 million a month of loans like the one it made to Patmont, according to Chief Executive Officer Mike Cagney. Next year, SoFi plans to issue as much as $3 billion of mortgages, including interest-only loans and others that can be sold to Fannie Mae and Freddie Mac, he said.

Heather Perlberg & Prashant Gopal | Bloomberg

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