Marketplace Lending Investors Ponder Loan Defaults, Issues in Harvey’s PathSeptember 1, 2017 | By: Sean Murray
On the LendAcademy Forum, a Lending Club investor posted that he had been selling notes belonging to Houston borrowers in anticipation of payment issues stemming from Hurricane Harvey. Other users chimed in with assessments of their own personal exposure, including one who noticed that affected zip codes made up a little under 4% of his outstanding principal. By now, secondary note buyers probably have their radar up to heed caution with these.
Elsewhere in the industry, MCA firm Strategic Funding and lender Breakout Capital both announced that they were suspending debits to businesses they’ve funded in the Hurricane’s path.
A message for our customers located in flood-affected areas of Texas pic.twitter.com/4nc8bjWzg5
— Strategic Funding (@SFSCapital) August 28, 2017
The OCC is also advocating that banks suspend payments in those areas from ATM fees to loans. They should consider “restructuring borrowers’ debt obligations, when appropriate, by altering or adjusting payment terms. Payment extensions should reflect individual borrower situations and generally should not exceed 90 days,” according to a statement.Last modified: September 1, 2017
Sean Murray is the founder of deBanked, an 11-year veteran of the merchant cash advance industry, a casual Lending Club and Prosper note investor, the co-founder of Daily Funder, an alternative lending speaker, consultant, writer, and enthusiast. Connect with me on LinkedIn or follow me on twitter.