Is there reason for concern? A Morningstar report on debt shows rising delinquencies in student loans and auto loans. While the rate for student loans more than 90 days past due declined to 11.0 percent in the first quarter, from 11.5 percent in the fourth quarter 2015, it has been rising since the end of […]
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Businesses walking the government tightropeOn July 12th, the Subcommittee on Financial Institutions and Consumer Credit is scheduled to hold a hearing to examine the opportunities and challenges specifically in online marketplace lending. Among the witnesses offering testimony will be Parris Sanz, Chief Legal Officer of CAN Capital and Sachin Adarkar, General Counsel of Prosper Funding. […]
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These answers were offered by the following execs to the question over whether or not lending marketplaces should have skin in the game, during a panel at LendIt in April. Gilles Gade, Cross River Bank YES Jeffrey Meiler, Marlette Funding NO David Johnson, First Associates IT DEPENDS Sid Jajodia, Lending Club YES (but it depends […]
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A hearing about marketplace lending put on by the House Subcommittee on Financial Institutions and Consumer Credit covered a wide array of topics on Tuesday. From merchant cash advance to business loans to consumer loans, the witnesses tried to help members of Congress understand the circumstances in their respective industries. Parris Sanz, the Chief Legal […]
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Wall Street 2015One anecdotal lesson that marketplace lenders seem to be circulating in 2016 is that outside institutional capital alone isn’t enough to succeed long term, at least on the consumer lending side where the yield spreads are typically narrower. Retail investors are crucial, some of them say, to achieve balance. In late March for […]
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Another capital source you say? Online lenders are ready with an answer and this time it seems to be securitization. Time and again we have had heard industry folks harp on about diversification of capital being the need of the hour. Well, that hour is here, it seems like. Things are looking up for Lending […]
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Did someone say trouble in (online lending) paradise? CommonBond has raised $30 million in equity, $300 million in debt and acquired a personal finance startup, Gradible. The New York-based online student loan lender that specializes in higher education loans raised $30 million in series C equity round from new investor Neuberger Berman along with existing […]
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Lending Club has a new chief capital officer. The company hired Patrick Dunne who headed iShares Global Markets and Investments at BlackRock. With 25 years of industry experience, Dunne has overseen 700 investment products with over $1 trillion assets under management. As the resurging online lender looks to amend investor relations, as the new chief […]
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Russian startup Blackmoon, that screens other company’s loans before selling them to investors, has launched in the US, drawn to the lure of its $1 trillion addressable market. Blackmoon aims to reach a billion dollar in loans by the end of 2017 and is targeting business, consumer, student and car loans. The company provides ‘marketplace […]
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We’ve heard a lot about troubles in the marketplace lending space over the last couple months. LendingClub, the industry bellwether, ousted its founder-CEO and revealed it is under federal investigation. Its stock has plummeted, contributing to a steep fall for shares of small business lender OnDeck. Add in layoffs at P2P rivals Prosper and Avant, […]
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