Research from TransUnion suggests that the Federal Housing Finance Agency’s (FHFA) move to a bi-merge system could significantly impact both consumers and lenders while providing little benefit.
The UK has launched their borrower referral scheme which came about as a government initiative; businesses who apply for loans at the nine largest UK banks and are rejected will be referred to aggregator platforms Funding Xchange, Business Finance Compared and Funding Options; the aggregators will pass information to alternative finance providers who will be able to provide quotes to the business. Source
JPMorgan asset-backed securities (ABS) analysts have highlighted marketplace lending securitizations, noting their growth and trending performance; cite marketplace lending ABS as one of the fastest growing securitization categories, increasing from $3.3 billion in 2013 to $9 billion in 2016; also say performance is better or similar to the broad market's ABS consumer loan securitizations overall with higher returns and lower default rates; additionally, the analysts report that credit characteristics on Avant's securitizations have improved. Source
The Federal Open Market Committee raised its target for the federal funds rate to 0.50% to 0.75% at its December meeting; Fed officials also signaled a more aggressive approach for rate increases in 2017 with projections showing the potential for three more rate increases next year; improvements in the labor market, positive GDP growth and stable inflation were key market factors for the rate increase. Source
Financial Health Network released its Financial Health Pulse Report, reporting a decline in financial health across most income groups.
Days after the chaos, newly appointed CEO of the SVB bridge bank urges customers to hold deposits. Meanwhile regulators investigate the fall.
Student loan marketplace lender, Earnest, has completed its fourth securitization; Goldman Sachs and Barclays were the lead arrangers; portfolio valued at $174.44 million; the October securitization is the fourth for the year with previous securitization deals in February, May and July. Source
After a successful first quarter, LendingClub posted earnings of $.39 a share on revenue of $289.5 million, beating analysts' expectations.
On Tuesday, Synctera announced the first Baas industry line of credit product, to help companies and users access credit lines.
LendingClub saw revenue and earnings at the high end of their guidance range but, due to ongoing uncertainty remain reserved with next steps.