Will Marketplace Lending Revert Back to Peer-to-Peer Lending?

March 28, 2016
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Peer to Peer

Institutional investors wanted higher yields on Prosper’s latest bond offering, an entire five percentage points higher, according to the WSJ. This wasn’t necessarily brought on by performance either. Instead the once voracious appetite for all things online lending is being tempered by uncertainty. Bain Capital Ventures partner Matt Harris told the WSJ that online lenders […]

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Hedge Funds Will Call The Shots in P2P Lending, Survey Says

March 6, 2016
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wall st

P2P lending platforms will increasingly rely on larger hedge funds to fund their expansion, The New York Hedge Fund Roundtable believes. The Roundtable is a non-profit organization committed to promoting education and best practices in the hedge fund industry. Timothy P. Selby, the organization’s president, said of a recent study they conducted, that institutional investors […]

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Lending Club Loan Size Cap Raised to $40,000 (Should Investors Be Worried?)

March 5, 2016
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Lending Club Max Loan Size

Consumers can now borrow up to $40,000, an increase from the previous cap of $35,000. The new maximum should raise eyebrows. That’s because while one of Lending Club’s biggest allures is the ability to refinance credit cards into a lower rate over a fixed term, there are zero safeguards in place to ensure that the […]

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Lending Club Shifts Fee Arrangement With WebBank

February 26, 2016
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Lending Club IPO

It’s a “belt and suspenders” precaution according to Lending Club CEO Renaud Laplanche. The Madden v Midland case has forced the company to rethink their arrangement with WebBank, the chartered bank that allows them to make loans nationwide. Under the new terms, the fee LendingClub pays to WebBank for the loans it issues will be […]

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Prosper Has Increased Its Estimated Loss Rates

February 15, 2016
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Prosper Loan Listings

“Effective today, Prosper has increased its estimated loss rates and the price charged for risk on the loans originated through the platform,” said an email to investors on Monday. “We believe this move ensures that our borrower payment dependent note and whole loan products remain competitive for our investors in the current turbulent market environment […]

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Lending Club TurboTax Integration Attempts to Solve Marketplace Lending’s Tax Problem

February 15, 2016
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TurboTax

Lending Club’s retail investors scored big on February 12th when they announced an integration with TurboTax software. The complexity of marketplace lending from a tax perspective has historically been one of the most prohibitive cost barriers for retail investors. Unlike savings accounts which issue a standard 1099-INT, Lending Club (and Prosper) issue both a 1099-OID […]

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Real Estate Lender Patch of Land Sells $250 Million in Loans

February 11, 2016
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a patch of land

Real estate lending platform Patch of Land announced that it signed a $250 million agreement with an east coast based credit fund to purchase its loans in a forward flow arrangement. The reluctance to name the city or state of the fund suggests that in doing so would too easily reveal who it is. Patch, […]

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Lending Club nets $4.3 million in Q4 profits

February 11, 2016
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marketplace lending

Wants to buyback shares for $150 million. Online lending marketplace Lending Club earned $4.3 million in profits in Q4 last year and facilitated loans worth $8.4 billion to small businesses and consumers in 2015. The San Francisco-based P2P lender’s revenue grew in Q4 grew by 93 percent to $134.5 million compared to $69.6 million in […]

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Lending Club Borrowers Are Paying Off Really Early – And There’s Something Weird About It

February 11, 2016
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quick loan payoff

This week I surpassed more than 500 lifetime early note payoffs on Lending Club. Considering that loans on the platform are either for a fixed term of 36 months or 60 months, I was quite surprised to see that the average early payoff was happening just 10 months in. My portfolio is too young for […]

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Yirendai Gets Smoked on Global P2P Lending Fears

February 10, 2016
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smoked

The market has turned overwhelmingly bearish on tech-based lending companies lately, but no company has perhaps felt the brunt more than Yirendai, a Chinese company listed on the New York Stock Exchange. Since their IPO less than two months ago, the price has already dropped by more than 60%. Investors seem to be basing that […]

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