GoodLeap explained

GoodLeap
Type:Private
Hq Location:Roseville, California, U.S.
Key People:Hayes Barnard
(Chairman and CEO)
Industry:Finance and Mortgage
Revenue:US$361 million (2020)[1]
Num Employees:1,300

GoodLeap, formerly Loanpal,[2] is a finance technology company that provides financing options for the residential solar energy industry. The company was founded in 2003 as Paramount Equity and was later rebranded to Loanpal. In June 2021, the company rebranded to GoodLeap. As of 2020, the company was responsible for 41% of the solar loan market in the U.S. and is the top solar lender in the country.[3]

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

History

GoodLeap started as 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. Although they launched in California's Sacramento Valley, the company lends nationwide.[7]

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.

In 2009, Paramount Solar was established. In 2013, Paramount Solar was sold to SolarCity (now Tesla Energy) in a transaction valued at approximately $120 million.[8] In 2011, the company took on an equity investment from Guthy-Renker.[9]

In December 2017, Paramount began originating residential solar loans and later rebranded as Loanpal.[10]

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

In 2020, the team launched its 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]

In January 2021, GoodLeap raised $800 million in a funding round led by New Enterprise Associates, West Cap Group, Brookfield Asset Management, and Riverstone Holdings.[18] [19] The company received an additional $800 million in funding from MSD Partners, BDT Capital Partners and Davidson Kempner in October 2021.[20] Between January and October 2021 the company had raised a total of over $1 billion in funding.[21]

In June 2021, Loanpal rebranded to GoodLeap.

Leadership

Hayes Barnard is currently the Chairman and CEO.[22] [23]

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.[24]

As of December 18, 2023 John Shrewsberry, former CFO of Wells Fargo, is CFO.[25] [26]

Ownership structure

GoodLeap, formerly Loanpal, is a finance technology company headquartered in San Francisco.[27] The company offers consumers access to a variety of residential lending products including mortgages, solar financing and home improvement loans.[28] 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.[29]

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.[30]

On March 8, 2024 the Minnesota Attorney General filed suit against GoodLeap and three other lending companies (Sunlight Financial, Solar Mosaic, and Dividend Solar Financeā€”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.[31] [32]

See also

GivePower

Notes and References

  1. Web site: GoodLeap Overview . bizjournals.com . 2021.
  2. Web site: Solar Financier Loanpal Eyes Home-Greening Market With New Name. 2021-06-03. www.bloomberg.com.
  3. Web site: Levy. Ari. 2021-01-27. Exec who quit SolarCity now runs the leading lender for solar installations. 2021-01-29. CNBC. en.
  4. Web site: Life at GoodLeap . GoodLeap.com.
  5. Web site: Paramount Equity Mortgage grows by staying focused on core business. 2017-09-22. The Business Journals Sacramento. 2020-02-27.
  6. Web site: California Lender Paramount Equity Pairs with Infomercial Creator Guthy-Renker. 2011-03-08. American Banker. 2020-02-27.
  7. Web site: Loanpal, LLC. NMLS Consumer Access. 2020-03-17.
  8. Web site: SolarCity Buys Paramount Solar To Boost Homeowner Outreach. Forbes. 2020-03-17.
  9. Web site: Infomercial Icon Guthy-Renker to Enter the Mortgage Business. 2011-03-08. National Mortgage Professional Magazine. en. 2020-03-25.
  10. Web site: Tesla's solar retreat provides opening for Loanpal's return. 2019-03-07. Asset Securitization Report. en. 2020-03-02.
  11. Web site: PenFed Credit Union, Loanpal partner on residential solar financing options. 2019-12-02. Solar Power World. 2020-03-03.
  12. Web site: Ex-SolarCity Execs Are Baking Solar Loans Into Mortgages. Bloomberg. 2020-03-03.
  13. Web site: Loanpal secures more funding for residential solar loans. 2020-01-13. Solar Power World.
  14. Web site: Misbrener . Kelsey . Loanpal secures more funding for residential solar loans . Solar Power World . 13 January 2020 . 2020-04-23.
  15. Web site: Goldman to Buy $320 Million of Loans From Solar Lender Loanpal. 2020-06-11. www.bloomberg.com.
  16. Web site: In a Year of Turmoil, Residential Solar Assets Are a Safe-Haven Investment. 2020-12-16. www.greentechmedia.com.
  17. Web site: 2020-11-30. Loanpal completes largest securitization of residential solar loans Solar Builder. 2020-12-16. Solar Builder Magazine. en-US.
  18. Web site: Renewable investment wave continues as solar lending company Loanpal raises $800 million. 2021-02-03. TechCrunch. en-US.
  19. Web site: 2021-01-27. Loanpal raises $800 million to grow home efficiency financing. 2021-02-03. Sacramento Business Journal.
  20. News: Wade. Will. 13 October 2021. GoodLeap Gets $800 Million Funding for Sustainable Home Push. Bloomberg.
  21. News: Matt. Wirz. Driebusch. Corrie. 13 October 2021. Tech Moguls Back GoodLeap's Green Housing Push With $12 Billion Valuation. Wall Street Journal.
  22. Web site: This former SolarCity exec is trying to reinvent 2 parts of the solar business. Business Insider. 2020-03-25.
  23. Web site: PenFed Credit Union Teams With Loanpal on Solar Installation Loans. 2019-12-02. NMP. 2020-04-08.
  24. Web site: 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.
  25. Web site: Jackson . Amber . 2023-11-22 . Top 10 CFOs in the USA . 2024-08-13 . fintechmagazine.com . en.
  26. Web site: Broughton . Kristin . June 4, 2024 . Wells Fargo Ex-CFO John Shrewsberry Readies GoodLeap for Next Growth Phase . August 12, 2024 . Wall Street Journal.
  27. Web site: The 3 main trends driving the imminent solar energy revolution. 2019-05-04. Inverse. 2020-03-31.
  28. Web site: Loanpal Rockets to Second-Largest Solar Loan Provider in the US. 2019-04-22. Green Tech Media.
  29. News: Edgecliffe-Johnson . Andrew . Fintech founder Hayes Barnard: half the organization thought 'this guy's out of his mind' . Financial Times . 11 June 2023.
  30. News: Semuels . Alana . The Rooftop Solar Industry Could Be On the Verge of Collapse . Time . 25 January 2024.
  31. Web site: Minnesota v. GoodLeap LLC, Sunlight Financial LLC, Solar Mosaic LLC, and Dividend Solar Finance LLC . Office of the Attorney General of Minnesota . 5 April 2024 . 27 May 2024 . US District Court for the District of Minnesota . live. https://web.archive.org/web/20240527081147/https://www.ag.state.mn.us/Office/Communications/2024/docs/SolarLending_Complaint.pdf. 27 May 2024.
  32. Web site: Weaver. John Fitzgerald . Minnesota sues GoodLeap, Sunlight, Mosaic and Dividend over dealer fees . PV Magazine . 26 April 2024 . 27 May 2024 . live. https://web.archive.org/web/20240430093355/https://pv-magazine-usa.com/2024/04/26/minnesota-sues-goodleap-sunlight-mosaic-and-dividend-over-dealer-fees/ . 30 April 2024.