LendingClub provided an investor update in a blog post yesterday that demonstrates the resilience of their borrower base; the company indicated that 90% of prime borrowers are not enrolled in any hardship plans; of those members that enrolled in the two month Skip-a-Pay program nearly 60% had actually made a payment during that time; LendingClub is estimating a 3% internal rate of return for vintages most exposed to the crisis (loans facilitated from Q1 2018 to Q1 2020); they expect losses to peak in Q4 2020 and Q1 2021 based on the structure and timing of hardship plans; for loans being issued today LendingClub is targeting a 5% return. LendingClub
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.