The top stories of 2018
This year saw elation over the rollback of risk retention for CLOs give way to concerns about leveraged lending, the 1st post-crisis downgrade of a subprime auto deal, the 1st AAA for commercial PACE, and much, much more.
Marketplace lending
Colorado raises the stakes in lawsuit against marketplace lenders
The state has expanded the scope of ongoing legal actions against Avant and Marlette to include several securitization trusts and trustees.
OnDeck to offer equipment financing to small businesses
The online lender will roll out the business early next year with a focus on loans of less than $100,000.
OCC sees sharp drop in mortgages serviced by large banks
An agency report said servicing portfolios have shrunk by nearly half in 10 years as much of the mortgage market has shifted to nonbanks.
LendingClub keeps boosting credit quality of prime consumer ABS
This marketplace lender's third securitization of the year again features fewer 60-month loans, slightly higher FICOs and lower coupons.
SoFi is said to cut 7% of staff, revamp ailing mortgage unit
Social Finance, the lending and refinancing startup valued at more than $4 billion, is cutting about 7% of its staff, according to a person familiar with the matter.
LendingClub reports 3Q loss but offers rosier outlook
The San Francisco company, which has racked up big losses over the last two and a half years, signaled Tuesday that it is on a path to profitability after resolving a series of longstanding regulatory problems.
Marlette boosts credit metrics, protections in $266M personal loan ABS
Marlette sharply reduced the share of sub-700 FICO borrowers, while also tightening a trigger tied to cumulative loss rates to enhance investor protections.
By
Glen Fest
SoFi earns 1st AAA on consumer loan ABS from Kroll, DBRS, S&P
It's the first time any of the rating agencies has assigned an AAA for any securitization of consumer loans by a marketplace lender.
By
Glen Fest
Laplanche’s new venture readies 1st exit for loan investors
The $286.4 million deal is an important test for Upgrade, which has raised $142 million of equity over the past two years but has yet to turn a profit.
OnDeck creates new subsidiary for bank partnerships
ODX will pursue deals with banks that want to use the New York lender’s technology to offer online small-business loans.
U.S. Bank takes on fintechs with new online loans, card for small businesses
The bank seeks to answer the threat posed by disruptors with quick online loans and a card that rewards small businesses for more kinds of spending.
Renaud Laplanche’s journey from scandal to second act
The LendingClub founder responded to being booted from his company by starting a new one with involvement from former investors — and a loan buyer he had supposedly wronged.
Fintechs have more work to do to prevent discrimination: Congressman
Rep. Emanuel Cleaver, D-Mo., released a survey of lending practices that he said point to practices such as forced arbitration clauses and extracting a customer’s credit score to determine creditworthiness.
Prosper forgoes prefunding period in next consumer loan ABS
Partly for this reason, Kroll expects losses on the transaction, PMIT 2018-2, to reach just 12.4% over the life of the deal, down from 13.4% for the previous transaction.
Startup’s mission: Help cash-strapped students finish college
It bothered Jeannie Tarkenton, founder of Funding University, that too many kids from lower-income families didn't graduate because they lacked just a few thousand dollars and couldn't get a loan.
LendingClub loss widens on legal, regulatory and impairment costs
The marketplace lender recorded an impairment charge tied to the acquisition of a specialty lending business and is still being hit with costs stemming from the scandal that toppled its previous CEO.
By
Andy Peters
OnDeck reports record profit in 2Q, eyes second bank partnership
The online small-business lender was aided by loan growth, wider margins and stable credit trends. Its shares surged by 25% after second-quarter earnings were announced.
Upstart finds a buyer for its bad loans, lowering funding costs
As a result of the forward flow agreement, Kroll has increased expected recoveries, allowing Upstart to lower credit enhancement on its next securitization.
Online lenders should have same disclosure rules as banks: N.Y. State
The New York State Department of Financial Services report recommended putting online lenders on a more equal playing field with traditional firms.
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