Alternative Lending
1.4K views | +0 today
Follow
Alternative Lending
Marketplace Lending + Point of Sale Lending
Your new post is loading...
Your new post is loading...
Scooped by Howard Freedland
Scoop.it!

The Fall 2016 Marketplace Lending Conference Schedule - Lend Academy

The Fall 2016 Marketplace Lending Conference Schedule - Lend Academy | Alternative Lending | Scoop.it
With LendIt USA in the spring every year pretty much every other significant marketplace lending conference takes place in the fall. It will be a very busy three months so everyone will have to pick and choose which conferences to attend. To help you in this regard we are listing all these fall conferences in …
Howard Freedland's insight:

This is a great list of upcoming industry events put together by Peter Renton

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Tony Platt Named Chief Creative Officer of LendingUSA

Tony Platt Named Chief Creative Officer of LendingUSA | Alternative Lending | Scoop.it
From Yahoo Finance: SHERMAN OAKS, Calif., July 7, 2016 /PRNewswire-iReach/ -- LendingUSA, a leading marketplace lender and provider of consumer point of need financing, has announced today that it has appointed Tony Platt as its new Chief Creative Officer. Platt will take a lead role in formulating and coordinating marketing efforts for LendingUSA. "Tony has demonstrated a remarkable ability to build connections between brands and consumers many times over," says Mike Testa, President of LendingUSA.
Howard Freedland's insight:
LendingUSA continues to grow its senior leadership team with highly experienced experts.  Tony Platt brings his 40 years of high-level marketing expertise to a team that includes Mike Testa, former President and the driving force for 15 years of Care Credit's amazing growth and profitablity.  Camilo Concha and Johannes Haze, founders of LendingUSA, already had 15+ years apiece of experience in direct consumer marketing. (full disclosure - Online Lending Partners of which I am the Managing Member is a founder of and owns 20% of LendingUSA).
more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Lending Club Investment Fund Hits Rough Patch | PYMNTS.com

Lending Club Investment Fund Hits Rough Patch | PYMNTS.com | Alternative Lending | Scoop.it
The more disclosures that roll out of Lending Club, the more it seems that its board doesn't know. And what it doesn't know is hurting it.
Howard Freedland's insight:
Hard to believe that the board of Lending Club (and especially its CFO) didn't "know" that LC Advisers has been practicing negative selection since it was formed. It has been widely known that LC Advisers has always been the buyer of last resort to fill loans that institutional and other better informed investors avoided.  The question is did the investors in LC Advisers know this?
more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Revolvers Beware: A Good Credit Score Might Not Be Enough For A Mortgage - Forbes

Revolvers Beware: A Good Credit Score Might Not Be Enough For A Mortgage - Forbes | Alternative Lending | Scoop.it
Big changes are coming to the U.S. mortgage market. On June 25, Fannie Mae will be introducing new underwriting policies that will impact how millions of Americans qualify for a mortgage. The most meaningful change is the introduction of "trended credit data" that will punish revolvers and reward transactors. If you don't know [...]
Howard Freedland's insight:
Mortgage Lenders and credit rating agencies are finally waking up to the fact that the historical FICO rating model is fundamentally flawed.  Not using trended credit data, and especially trended revolving credit card balances and other indicators of a borrowers cash flow, leads to mis-characterization  of a borrower's true credit worthiness.
more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

J.P. Morgan, OnDeck And The Future of Alternative Lending

J.P. Morgan, OnDeck And The Future of Alternative Lending | Alternative Lending | Scoop.it
Earlier this month, J.P. Morgan announced a strategic partnership with OnDeck Capital to originate, underwrite, and distribute loans targeted specifically at..
Howard Freedland's insight:

I believe that the article misses the underlying truth which is why JP Morgan is partnering with OnDeck and other banks are partnering with LendingClub and other alternative lenders.  The underlying truth is that the difference in the cost of origination in bps is much greater than the delta in credit losses.  The net spread is greater for alternative lenders which is why banks are partnering rather than competing.  I expect these economics to continue to widen in favor of alternative lenders over the coming years.

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Direct Lending Investments has reason to celebrate third anniversary - Bankless Times

Direct Lending Investments has reason to celebrate third anniversary - Bankless Times | Alternative Lending | Scoop.it
Marketplace lending and investment firm Direct Lending Investments celebrated its third birthday in style by passing a significant investing milestone. The company, which launched on Nov. 1, 2012, …
Howard Freedland's insight:

Brendan continues to knock the cover off the ball.  He has become a one-man force in small business lending.

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Direct Lending Funds Drive Private Debt Fundraising In 3Q15 - ValueWalk

Direct Lending Funds Drive Private Debt Fundraising In 3Q15 - ValueWalk | Alternative Lending | Scoop.it
Preqin’s Q3 private debt report reveals that direct lending funds in market continue to be the largest part of the private debt market
Howard Freedland's insight:

Direct Lending is the one place investors can go for reasonable returns at reasonable risk levels

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Pitfalls for the Unwary Borrower Out on the Frontiers of Banking

Pitfalls for the Unwary Borrower Out on the Frontiers of Banking | Alternative Lending | Scoop.it
Marketed as a way to get out of debt, loans from online lenders are instead leaving some people deeper underwater.
Howard Freedland's insight:

Worth reading for an example of a way to twist the facts.  The NYT uses an example of an accountant in Queens borrowing from multiple lenders simultaneously and the complaining that they are trying to collect the money using ACH payments, which the borrower most likely agreed to.  Lending Club, Prosper and others have lent over $10 billion to hard working Americans with good or better credit, most of whom benefit from these loans and borrow responsibly.  However, like most consumer lenders, there are bad loans.  While there is some fraud (the NYT article shows a good example of fraudulent abuse), and some individuals will have a change in life circumstances which make it hard or impossible to repay there loan, delinquencies on consumer loans are running at historic lows and many Americans are benefiting from this innovation in finance.

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Valid at Inception Rule Shot Down by the Second Circuit

Valid at Inception Rule Shot Down by the Second Circuit | Alternative Lending | Scoop.it
Law firm providing corporate law, securities law, complex litigation and other legal services to leading businesses and organizations. Pepper Hamilton LLP was founded in Philadelphia in 1890.
Howard Freedland's insight:

Madden vs. Midland should be on every marketplace lenders mind.  This case presents a threat to marketplace lenders who lend in all 50 states relying on the bank charter of their originating bank.

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Personal Loans Vs Credit Cards: When To Use A Loan Instead Of Plastic

Personal Loans Vs Credit Cards: When To Use A Loan Instead Of Plastic | Alternative Lending | Scoop.it
Personal loans and credit cards are different. Learn the advantages of each and which one is better for your needs.
Howard Freedland's insight:

Basic article on the benefits of personal loans versus credit cards for certain purchases.  "a personal loan can be a more affordable way to finance a large purchase than a credit card"

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Bond Street, An Online Small Business Lender, Announces $110 Million In Funding

Bond Street, An Online Small Business Lender, Announces $110 Million In Funding | Alternative Lending | Scoop.it
The financing, which will primarily be used to fund more loans, is yet another sign of the business opportunity in this burgeoning industry.
Howard Freedland's insight:

Another small business lender raises a large war chest.  All of this lending should begin to have a positive impact on the US economy.

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Bryce Mason of P2P-Picks Taking a Job at Direct Lending Investments - Lend Academy

Bryce Mason of P2P-Picks Taking a Job at Direct Lending Investments - Lend Academy | Alternative Lending | Scoop.it
Bryce Mason has broken plenty of new ground in this industry. He was the first Ph. D. level statistician to do some serious analysis of the Lending Club and Prosper loan history and share his results publicly. I first heard from Bryce in early 2012 when he shared the results of hundreds of hours of …
Howard Freedland's insight:

Congratulations to Bryce and Brendan.  Bryce has truly been a thought leader in the P2P space and I have no doubt that he will remain one.

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

From Morgan Stanley to Lending Club: John Mack's unusual career path

From Morgan Stanley to Lending Club: John Mack's unusual career path | Alternative Lending | Scoop.it
It’s rare that a CEO retires at the end of a long career and then starts working with a company looking to disrupt the business whence he came. But that’s just what former Morgan Stanley CEO John Mack is doing.
Howard Freedland's insight:

"There is a whole marketplace being developed on lending, using the Internet, with no expenses coming from branches"

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Avant Aims to Cut Loan Volume by as Much as Two-Thirds

Avant Aims to Cut Loan Volume by as Much as Two-Thirds | Alternative Lending | Scoop.it
Online lender Avant Inc. is putting most of its marketing partnerships on hold to pull back on the company’s volume of loans because of concerns over capital availability, according to a person familiar with the situation.
Howard Freedland's insight:
Marketplace Lending platforms with marginal business models continue to be negatively impacted as investors in the platforms and investors in loans continue to re-assess the alignment of interests.  Investors are looking for models that better align their interests so that they can confidently invest in consumer loans which remain a highly attractive investment asset.
more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

LendingClub Fund Has Its Version of June Swoon

LendingClub Fund Has Its Version of June Swoon | Alternative Lending | Scoop.it
A fund managed by LendingClub that invests in the company’s online consumer loans expects to report its first-ever negative month, according to investor documents reviewed by The Wall Street Journal.
Howard Freedland's insight:
Not surprising to industry insiders, but apparently surprising to LC's BoD and LCA investors, LC admits to prior poor practices at LCA and the LCA Funds.  Since their inception, they have been the repository of loans other investors did not want to purchase and or to "top off" loans that hadn't been fully subscribed for.  This was a key part of LC's strategy to constantly hit their growth targets, especially nearing month-ends.  Now we also know that their loan valuation practices (or default recognition policies) assumed that the performance of the loans in the Funds would mirror the overall pool of LC loans, even though they knew (or should have known) that the performance of these loans would be inferior to the overall pool.  In the past (and before the IPO) a number of investment firms offered to buy LCA.  Renaud always rejected these offers stating that the Funds were critical to the overall strategy of LC.  At least now it is clear why he thought so.  Unfortunately, a short-term strategy to maintain month over month growth and to close the funding of marginal loans seems to be blowing up into yet another significant long-term negative for LC to overcome.  I personally believe that appointing a supervisory board (of people who should have known what was going on all along) will neither satisfy disgruntled investors nor eliminate the problem.
more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

U.S. Treasury Department Issues White Paper on Online Marketplace Lending Industry

Howard Freedland's insight:
US Treasury response from their RFI.  Looking for everyone's thoughts and suggestions
more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

The Evolving Nature Of P2P Lending Marketplaces

The Evolving Nature Of P2P Lending Marketplaces | Alternative Lending | Scoop.it
In March 2014, The Economist published Banking without banks, declaring that peer-to-peer (P2P) lending platforms were set to disrupt banks and other..
Howard Freedland's insight:

This article is right on point.  At the first LendIt conference, I was on a small panel of institutional investors who suggested that the future of the industry would be driven by the growing availability of institutional capital.  Last year I started actively focusing on Point of Sale lending as a more sustainable and organic source of loan flow.  Companies such as LendingUSA, in which I am invested, are rapidly changing the nature of Point of Sale lending by applying new underwriting techniques and technology to an enormous existing source of loan flow.

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

A Specialty Income Strategy Based on Direct Lending - The Wall Street Transcript

A Specialty Income Strategy Based on Direct Lending - The Wall Street Transcript | Alternative Lending | Scoop.it
TWST: Could you explain the Ranger Specialty Income Fund? Mr. Kassul: The strategy is based on direct lending. It is an offshoot of a new asset class that has been building and getting a lot of momentum in the press in the peer-to-peer lending space.
Howard Freedland's insight:

Ranger continues to innovate as an investor in emerging Marketplace platforms

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Finextra PR: Goldman Sachs leads investment in cloud-based POS startup Financeit

Finextra PR: Goldman Sachs leads investment in cloud-based POS startup Financeit | Alternative Lending | Scoop.it
Finextra: Financeit, a market leading financial technology company offering a cloud-based point-of-sale financing platform, today announced the close of a minority equity financing round led by the Merchant Banking Division of Goldman Sachs ("Goldman Sachs").
Howard Freedland's insight:

Fintech investments by major institutional investors into marketplace platforms remains vibrant

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Prosper Marketplace to Acquire Leading Personal Finance Company BillGuard | Business Wire

Prosper Marketplace to Acquire Leading Personal Finance Company BillGuard | Business Wire | Alternative Lending | Scoop.it
Prosper Marketplace today announced that it has signed a definitive agreement to acquire BillGuard.
Howard Freedland's insight:

Yet another evolution in the marketplace lending industry.  

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

The Online Lending Industry Is Growing Sharply (and So Are the Gripes)

The Online Lending Industry Is Growing Sharply (and So Are the Gripes) | Alternative Lending | Scoop.it
Online lenders aren't feeling too loved by regulators and some borrowers. Here's how they're trying to fix things.
more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Personal Loans vs Credit Cards | Expert Advice from Credit.com

Personal Loans vs Credit Cards | Expert Advice from Credit.com | Alternative Lending | Scoop.it
Trying to decide between a personal loan or a credit card for some upcoming expenses? Here is a look at the pros and cons of each from our experts.
Howard Freedland's insight:

"No impact on credit utilization. Personal loans are viewed differently than credit card accounts by many credit scoring models. If your personal loan is listed as an “installment” loan rather than “revolving” credit, it will not be counted in your credit utilization ratio."

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Payoff Finds $250M To Fund Consumer Loans | socalTECH.com

Payoff Finds $250M To Fund Consumer Loans | socalTECH.com | Alternative Lending | Scoop.it
Costa Mesa-based Payoff, the consumer finance startup led by Scott Saunders, has scored a $250M commitment from alternative asset manager Marshall Wace, to go towards the company's consumer refinancing and l
Howard Freedland's insight:

The proliferation of platforms offering direct-to-consumer loans continues

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

Goldman Sachs Is Entering P2P Lending Becoming the 1st Bank to Launch a Platform - Lend Academy

Goldman Sachs Is Entering P2P Lending Becoming the 1st Bank to Launch a Platform - Lend Academy | Alternative Lending | Scoop.it
Goldman Sachs is entering P2P lending.  This is a major milestone for our industry since it marks the 1st bank to enter.  The New York Times posted a lengthy article about Goldman’s plans to launch its online lending platform and compete with top platforms like Lending Club and Prosper. There are many details yet to be …
Howard Freedland's insight:

One more endorsement for consumer and small business lending. Interesting timing given Goldman's recent position as lead underwriter in Lending Club's public offering.  

more...
No comment yet.
Scooped by Howard Freedland
Scoop.it!

The Lending Startup Goldrush

The Lending Startup Goldrush | Alternative Lending | Scoop.it
Lending companies have raised over $1.5 billion in just the last five quarters. International market growth is driving the trend.
Howard Freedland's insight:

Marketplace Lending continues to draw capital from major institutional investors and prominent venture capitalists

more...
No comment yet.