GoodLeap

GoodLeap

Formerly	Paramount Equity (2003–2017) Loanpal (2017–2021)
Company type	Private
Industry	Finance and Mortgage
Founded	2003; 21 years ago (2003)
Founders	Hayes Barnard Jason Walker Matt Dawson
Headquarters	San Francisco, California, U.S.
Key people	Hayes Barnard (Chairman and CEO) John Shrewsberry (CFO) Daniel Lotano (CSO)
Services	Residential solar and battery storage loans FHA insured loan Conventional loans Refinance and home purchase loans VA loans Fintech
Revenue	US$361 million (2020)[1]
Number of employees	1,300
Website	goodleap.com

GoodLeap, formerly Loanpal,^[2] is a finance technology company headquartered in San Francisco,^[3] that provides financing options for the residential solar energy industry.

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

History

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.^[7] Although they launched in California's Sacramento Valley, the company lends nationwide.^[8]

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.^{[year needed][citation needed]}

In 2009, Paramount Solar was established.^[7] In 2013, Paramount Solar was sold to SolarCity (now Tesla Energy) in a transaction valued at approximately $120 million.^[9] In 2011, the company took on an equity investment from Guthy-Renker.^[10]

In December 2017, Paramount began originating residential solar loans and later rebranded as Loanpal.^[7]

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

In 2020, they launched their 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] and was responsible for 41% of the solar loan market in the U.S. and was the top solar lender in the country.^[18]

In January 2021, Loanpal raised $800 million in a funding round led by New Enterprise Associates, West Cap Group, Brookfield Asset Management, and Riverstone Holdings.^[19][20] The company received an additional $800 million in funding from MSD Partners, BDT Capital Partners and Davidson Kempner in October 2021.^[21] Between January and October 2021 the company had raised a total of over $1 billion in funding.^[22]

In June 2021, Loanpal rebranded to GoodLeap.^[2]

Leadership

Hayes Barnard is currently the Chairman and CEO.^[23][24]

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.^[25]

As of December 2023 John Shrewsberry, former CFO of Wells Fargo, is chief financial officer.^[26][27] And Daniel Lotano, former president of EverBright, as chief strategy officer.^[28]

Ownership structure

The company offers consumers access to a variety of residential lending products including mortgages, solar financing and home improvement loans.^[29] 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.^[30]

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.^[31]

On March 8, 2024 the Minnesota Attorney General filed suit against GoodLeap and three other lending companies (Sunlight Financial, Solar Mosaic, and Dividend Solar Finance—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.^[32][33]

See also

GivePower

References

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