Prosper has announced a funding deal which has been in development since August; the firm has received an investment commitment for $5 billion over the next two years from a consortium of investors including affiliates of New Residential Investment Corp., Jefferies Group LLC, Third Point LLC and an entity of which Soros Fund Management LLC is the principal investment manager; the consortium is also being offered an equity stake which could account for as much as 35% ownership in the company and is expected to help promote a long term business relationship; the committed investment will represent a substantial increase for the firm which is likely to report approximately $2.2 billion in loan originations for 2016. Source
SoFi has partnered with Fannie Mae to help its customers pay down student loan debt using home equity; already focused on student loans, SoFi's new Student Loan Payoff ReFi will allow homeowners to refinance their home and simultaneously pay student loan debt; with home equity, borrowers can combine their mortgage and student loans to make one loan payment on their debt. Source
AutoGravity has added First Investors Financial Services to its car loan financing network; AutoGravity has developed an app that allows car buyers to choose a car online and receive four financing offers; the addition of First Investors Financial Services will broaden the available financing options for users. Source
P2P property lending has been providing steady returns in the UK, according to a report from rating agency, 4thWay; since 2013, UK P2P property lenders have lent £1.6 billion with returns ranging from 2.25% to 12.7%; lenders in the category have achieved success through thorough underwriting processes with maximum loan to value ratios of 70% to 80% and most loans secured by the property. Source
Estimated return on loan production in November 2016 was 6.58%, which is down from the previous three months; Prosper attributes its revised pricing and credit market trends overall to the month's weaker performance; the average FICO score in November was 714.2 which is approximately 10 points above the FICO scores in 2015 vintages; cumulative charge-offs are trending higher in 2015 and 2016 than 2013 and 2014; higher pricing is also a factor potentially affecting prepayment rates which are higher for loans originated in 2016. Source
In Orchard's Weekly Online Lending Snapshot, the company introduces a new section on US marketplace lending funds and highlights the growing business also noting RiverNorth's November 17 webcast, "Incorporating Marketplace Lending into an Institutional Portfolio"; notable data points from the snapshot include monthly gains in publicly traded companies for Lending Club, Yirendai and Square; in UK listed funds, the Ranger Direct Lending Fund continues to lead returns with a monthly gain of 2.27%; the RiverNorth Marketplace Lending Fund also has a monthly gain, with a return of 0.84%; in securitization the snapshot has Lendmark Funding Trust as the most recent securitization with a pricing date of October 26. Source
ID Finance has partnered with Latvian marketplace lender Mintos to list its MoneyMan loans on the platform's marketplace; current loans will be issued to Spain ranging from EUR 300 ($326) to EUR 1,200 ($1,304) with a repayment period of 30 days to 4 months; ID Finance is the first network originator to offer Spanish listed loans on the Mintos platform providing for enhanced cross-border diversification. Source
Funding Circle led international P2P loan issuance in January with originations of 120.9 million euros ($130.21 million), according to data from p2p-banking.com; platform loan volume was followed by Zopa and RateSetter; Zopa reported originations of 94 million euros ($101.24 million) and RateSetter reported originations of 78 million euros ($84.01 million). Source
Abundance sold 72% of all Innovative Finance ISA (IFISA) products in the last year; this represented 62% of investment into the new product overall; while the P2P lender is happy with their success they realize their market lead will diminish as they were one of a few platforms approved in the last year; a host of other platforms, including top lender Zopa, have been approved recently and the numbers are sure to be more widely spread out among a larger group of platforms; Bruce Davis, co-founder and joint managing director of Abundance, tells AltFi, "Abundance's success is very much the good news part of the Innovative Finance ISA story to date." Source
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