CU 2.0 Fintech Friday: RenoFi

It’s CU 2.0 Fintech Friday! Today, Chris Otey sits down with RenoFi to discuss all things credit union, fintech, and digital innovation.

This is our chance to chat with the people who push our industry forward. They bring new techniques, new technologies, and new points of view to the scene. (And we promise, we’ll try to avoid digital distractions for your credit union’s CEO!)

There’s a good chance that your members are homeowners.  Maybe they’ve been dreaming for years about their renovation wishlist, or maybe they’ve recently purchased a fixer-upper. But as every homeowner learns once a contractor comes out and gives a quote, renovating is EXPENSIVE! By the time the typical homeowner would have enough equity to tackle their renovation wish list, their kids are nearly off to college.

This is because while most homeowners expect to see their homes increase in value from their planned renovations, those gains aren’t recognized with traditional home equity loans or cashout refinances.

That’s where RenoFi comes in, a fintech platform enabling renovation lending for Credit Unions. A standard home equity loan might limit a homeowner to borrowing $35k, while a RenoFi loan may empower them to borrow $125k. That way members can complete their renovation in one swoop and add some serious value onto their home.

 

Introducing RenoFi

Renofi is a fintech platform enabling Credit Union partners to offer a new turnkey way of renovation lending.

  1. RenoFi’s suite of renovation loans allows qualified Credit Union members to borrow based on their homes After Renovation Value, unlocking a massive market opportunity for Credit Unions of all sizes.
  2. By partnering with RenoFi, Credit Unions have an instant turnkey renovation lending solution – no need to increase headcount or add responsibilities to anyone’s plate. RenoFi handles the renovation underwriting while the Credit Union continues doing what it’s always done.
  3. RenoFi provides its Credit Union partners immediate renovation lending expertise through access to its proprietary, data-driven, Renovation Underwriting platform,  which provides a full assessment of the member’s renovation project, such as contractor due diligence, project feasibility, contract review, insurance review, certifying the renovation funding for the Credit Union and their members.
  4. RenoFi’s direct-to-consumer marketing platform and channel partnerships with the top Mortgage Loan Originators in the county, delivers the fastest growth channel for Credit Unions seeking new member acquisition and prime loan assets.

 

If this sounds like an intriguing Credit Union–fintech partnership, check out the RenoFi snapshot below!

 

RenoFi Snapshot

Here’s a quick look at the basics of RenoFi. Check out what they and others are saying about their place in the market.

 

Top 3 Problems Solved

  1. Innovative suite of renovation lending products, brings Credit Unions into the fintech spotlight
  2. Turn-key renovation underwriting platform
  3. High growth channel for of new, direct  members renovating their homes

RenoFi Founder: Justin Goldman & Lee Miller

 

RenoFi Market Strategy

Credit Unions existing membership base, proprietary direct-to-consumer marketing engine, the “renovation ecosystem”, including MLOs, and contractors

 

RenoFi in the News

RenoFi has not hit the press yet, but are currently working with CUs with over $2.5B in assets, closing millions in RenoFi loans.  Here are two of their blogs that take a deeper dive into what they offer:

Before & After: a RenoFi-powered renovation in Villanova

How Appraisals Work for Home Renovation Loans

Interested in seeing more fintech entrepreneurship? Check out the CU 2.0 fintech infographic, Death by 1,000 Cuts. You can see firsthand the impact fintechs have had on the credit union industry, as well as how fintech innovation can improve your income statement, balance sheet, interest margin, services, and more.

Credit Union 2.0 believes fully in the power of credit union and fintech partnerships. With the shared goal to redefine multifaceted financial services models look like to members, more credit unions are looking to partner with forward-leaning fintechs.

If you want to learn more about credit union–fintech partnerships, click here.