Envestnet announces that the Envestnet Credit Exchange has launched access to a broad range of residential real estate and unsecured lending products for advised clients from a growing list of lending partners selected for their product breadth and service quality.
The Envestnet Credit Exchange has expanded its product set beyond securities-backed lending with Upgrade and LightStream for unsecured loans, and Ally Home, Better, and Guaranteed Rate to help wealth managers meet what is typically their clients' largest credit need -- real estate financing.
"To compete and succeed in the wealth management arena, Advisors must address both sides of their clients' balance sheet. Helping clients build net worth means managing credit as strategically as investments. This product expansion gives advisors solutions for their clients' financing needs," said Andrew Stavaridis, Executive Group Head, Solutions Distribution at Envestnet. "Creating Financial Wellness is the strategic high ground for our industry, and credit is an essential pillar. Together, with insurance and financial planning, providing credit solutions positions Advisors to confidently answer, 'Why should you be my wealth manager'?"
The Envestnet Credit Exchange, powered by the Advisor Credit Exchange (ACx), provides financial advisors using the Envestnet ecosystem access to a broad choice of secured and unsecured loan options, from $10,000 to $25 million, and above. The potential lending opportunities are gathered based on each client's financial data and come from a list of lending partners curated for their product offering, service quality and financing experience. The expansion of the Credit Exchange's suite of lending products now provides advisors with access to:
- Residential Real Estate Loans: Advisors can help clients obtain loans for everything from purchasing or refinancing homes to paying for home improvements. The Federal Reserve Board of New York reports that mortgages account for over 70% of consumers' personal credit balances.
Ally Home (the residential mortgage lending arm of Ally Bank), Better, and Guaranteed Rate are the first residential mortgage lenders to join the Exchange.
- Unsecured Loans: Envestnet has partnered with Access Financing (a SweetPay brand), a provider of unsecured loan aggregation solutions, to connect the Exchange with multiple unsecured lending partners, and present a wider array of potential loans for each application based on client data and relevance, from which advisors and clients can choose those with the best terms.
In addition to LightStream, a division of Truist (formerly SunTrust), the unsecured lending partners on the Credit Exchange now include Upgrade Inc., a neobank that offers access to affordable and responsible credit to consumers. LightStream joined the Exchange in 2020. Envestnet, ACx and Access Financing plan to add lenders in the second and third quarters of 2021 to continue to expand credit market access.
"The Envestnet Credit Exchange is now positioned to enable advisors to meet the three key personal lending services— securities-backed, unsecured, and real estate-based loans," said Peter Stanton, CEO of Advisor Credit Exchange. "The connections we foster can provide advisors the power and confidence to advise their clients on all aspects of lending and help them access the ideal credit solutions for meeting their needs."
