Creating a new student loan marketplace
Incenter Mortgage Advisors and CampusDoor team up to create a new student loan market for non-bank lenders and investors.
The $140 billion, private student lending industry is a relatively fast and easy way for lenders to create a new revenue stream by providing a much needed product to parents with college-bound children.
However, because there is no secondary market for these loans, non-bank lenders and private investment firms have been relegated to the student lending sidelines. Until now.
IMA and CampusDoor recently teamed up to create the Student Loan in a Box — a new offering that enables non-bank lenders to offer student loans and refinances to customers while giving investors access to purchasing them.
Here’s how it works: CampusDoor sets up a lender-branded origination platform that makes it easy for students and their parents to apply for an in-school loan or refinance an existing student loan.
CampusDoor does all the application intake and processing, and provides underwriting as well as the funds transfer from the investor/purchaser. IMA, Incenter Mortgage Advisors, provides investor and servicing support.
As for revenues, lenders receive a referral fee for every loan that funds. And investors earn their money on the spread over the life of the loan.