CapitalStackers has received full authorization from the FCA also allowing them to begin the process for offering the innovative finance individual savings account to their investors; CapitalStackers provides secured loans to real estate developers; says investors can receive double digit returns up to 20%. Source
A member of the Lend Academy forum has created a table sharing the annualized rate of return on 36 month loans based on differing charge off scenarios; the table outlines when returns will become negative at varying interest rates which can in turn be compared to interest rates on loans issued by Lending Club; the findings are valuable to investors who are interested in knowing what might happen to their portfolio if defaults were to increase. Source
Marketplace lending investments offer limited options for investors seeking to save or invest for their children; Lend Academy provides details in their article; currently UTMA accounts are the only investment vehicle; created from the Uniform Gifts to Minors Act, these accounts can be opened for children under a specified age with irrevocable contributions; the assigned minor owns the assets in the account however they cannot gain complete control of the account until a specified age. Source
The Securities and Exchange Commission (SEC) has requested that Lending Club provide increased disclosure on its loan portfolio and sources of funds also suggesting they improve non-GAAP reporting which is potentially misleading for investors; Lending Club has agreed to provide more disclosure and evolved its SEC filings accordingly however it has defended its non-GAAP accounting procedures, reporting it did not see the measures as misleading; recent requests for added disclosure as a publicly traded company are included in the SEC's last correspondence on November 4; the items remain open and the SEC's most recent correspondence is in addition to its review of the company following the replacement of its CEO in May. Source
Emerging online lending platforms from traditional banks could be the market's disruptors with their ability to offer low fees; few banks have emerged with proprietary online lending platforms however the fee structures offered by Marcus from Goldman Sachs have caused some industry participants to fear the emergence of similar models; other speculators believe traditional banks are not agile enough to build and offer market leading online lending capabilities in a competitive timeframe; Orchard says competition will be fierce but the end result is likely to produce improved and expanded access to capital for customers. Source
According to P2P-Banking, Lendico has stopped originating consumer loans in Germany; website is referring consumer loan borrowers to Finanzcheck, but the company is still offering business loans in Germany; company has also ended consumer loans in the Netherlands and stopped new loan originations in Brazil and South Africa; recent activity from the firm includes an announcement last week regarding a joint venture with Postfinance in Switzerland. Source
Credible has announced a new partnership with New Hampshire Higher Education Loan Corporation (NHHELCO); company is a multi-lender focused on loans and refinancing for higher education; the new partnership will add another student loan refinancing option to the site; with the addition of NHHELCO the platform now has seven refinancing lenders; NHHELCO will offer its EDvestinU Consolidation Loan product which allows for consolidation of federal and private loans with a fixed or variable-rate refinancing loan that includes repayment terms ranging from 5 to 20 years; the EDvestinU Consolidation Loan product offers variable-rate loans with interest rates from 2.47% to 6.07% APR and fixed-rate loans with interest rates from 3.94% to 7.54% APR. Source
One of the top three P2P platforms in the UK loses their new chief risk officer only six months after he was initially hired; Cyrille Salle de Chou, who initially came from Lloyd's Banking Group, is now headed to HSBC to be the chief risk officer of their European retail business; Salle de Chou told the Financial Times: "[It is] a great opportunity I could not refuse. Not a sign of concerns re RateSetter. I thoroughly enjoyed my time at RateSetter." Source
The Financial Conduct Authority has issued an update on its rules for the crowdfunding market; the update is based on feedback received since July and its authorization process; seems there will be a number of modifications; some of the key areas for new regulation in P2P lending include disclosure, wind-down plans, mortgage lending standards, cross-platform investment, investment limits, operational risk complexity, marketing promotions, provision funds, money handling standards, regulatory arbitrage, maturity mismatching, investment for institutional investors and liquidity risk for IFISA investors. Source
OnDeck has obtained a $200 million revolving credit facility from Credit Suisse; $125 million of the funding will be available while the remaining $75 million will be provided at the lender's discretion; loans will be made to Prime OnDeck Receivable Trust II, LLC (Port II), financing Port II's purchase of OnDeck loans for collateral; firm says it will use a portion of the funds to prepay its $100 million Prime OnDeck Receivable Trust, LLC facility. Source