Marketplace lending

The $243 million transaction – Small Business Lending Trust 2020-A – is backed by a static pool of 1,930 loans originated and serviced by an affiliate of the U.K.-based lender.

Macro factors point to a solid year in the securitization market but wild cards abound, many of them political.

Marketplace consumer loan ABS volume is expected to rise in 2020, aided by strong 2019 economic tailwinds benefiting originations as well as favorable federal regulatory proposals that could encourage more securitizations.

Financial regulators’ statement cautiously encouraging lenders to go beyond traditional underwriting in their lending decisions is a big step forward for the use of alternative data and artificial intelligence, bankers say.

In the past year, companies including LendingClub Corp. have been tightening the spigot, following a revolt by investors upset over years of unexpected losses.

Casting aside recession fears, the credit bureau predicts credit cards, mortgages, auto loans and unsecured personal loans should all perform well — including those extended by online lenders.

The 2015 decision posed new legal challenges for institutions trying to sell loans to third parties, but the federal regulatory agency proposed steps Monday for banks and debt parties to evade state interest rate caps.

Banks and lenders have made inroads in analytics and automation with machine-learning technology. Will asset management follow suit?

According to a presale report from Kroll, the additional notes will carry the same ratings and terms on the five counterpart classes of $700 million in outstanding notes.

The San Francisco fintech company has agreed to pay a $110,000 fine for failing to comply with a 2017 state law that requires mortgage servicers to be licensed.

Kroll Bond Rating Agency has tracked rising levels of annualized net losses in marketplace-loan securitizations except for, ironically, the riskiest pools it tracks from unsecured subprime lenders: both losses and delinquencies for subprime lenders' outstanding securitizations have fallen from September 2018 levels.

The company has rolled out an online platform for firms considering marketplace loans as an asset class.

Freddie Mac's test of artificial intelligence to make lending decisions could be a significant turning point in broadening the use of the technology.

Digital-first lenders more than doubled their market share in the last four years, according to a report by Experian.

Digital loan underwriting has taken the lion's share of the volume of unsecured consumer lending, a sector with plenty of room for growth, according to DBRS.

The third issuance from the master trust has a higher average interest rate and greater expected losses than previous pools due to the inclusion of more higher-risk marketplace loans.

SoFi's fourth issuance of marketplace loans includes more contracts in the pool with terms of 24 months, 48 months and 60 months, and fewer 36- and 84-month loans.

The bureau issued three policies removing the threat of legal liability for approved companies that test new products.

The acquisition of Radius Intelligence fits with the online lender's existing focus on small commercial borrowers.

A year after the major credit bureaus agreed to strip tax liens and civil judgments from consumers' credit files, a new study says it is hampering lenders' credit decisions. But proponents of the move insist it was the right call.