TYSONS, Va.–PenFed Credit Union said it has made an investment in San Francisco-based Loanpal, a provider of residential solar loans, to provide Loanpal’s technology platform to make clean energy products more accessible to homeowners.
The capital partnership is Loanpal’s 14th and will provide the capital needed to continue Loanpal’s growth and mission to help homeowners live a more sustainable life, according to PenFed.
According to the organizations, Loanpal is responsible for more than $2 billion in residential solar loans since 2018 and 30% of all new solar loans in the U.S.
“Through the partnership, PenFed will have access to Loanpal’s technology platform to deploy capital without the traditional costs associated with a consumer lending platform,” PenFed said in a statement.
Loanpal will manage the entire lending experience, including installer management, origination, funding and servicing. Loanpal will also provide real-time performance data and insights into the PenFed portfolio via Loanpal’s investor portal, the credit union added.
Low Default Rates
“We are excited to work with Loanpal and are very impressed with the platform they have developed in the clean energy space,” said Jay Fee, PenFed’s VP-lending. “Loanpal’s focus on generating high-quality customers with low default rates and increased prepay speeds aligns well with PenFed’s desire to help more people save money on their everyday expenses.”
Added Loanpal CEO Hayes Barnard, “Most homeowners want to tap into clean energy products but less than 2% of them actually move forward with it. Access to smart, efficient capital is key to clean energy adoption and we’re able to help drive that change by partnering with forward-thinking companies like PenFed who want make a positive impact.”