Consumer online lender 4finance has announced it will be using FICO TONBELLER Cloud Solution to monitor for anti-money laundering; the new solution will help the firm comply with the 4th EU Anti Money Laundering directive; 4finance is a European online consumer lender operating in 17 countries with total loans of over EUR4 billion ($4.24 billion) since its founding in 2008. Source
Better Mortgage is now offering mortgage loans in thirteen states with the expansion to Florida; the lender offers a number of advantages for borrowers including a 100% digital experience and a verified pre-approval letter for qualified borrowers within 24 hours; with the licensing in Florida, Better Mortgage gains access to lending in Tampa and Jacksonville, recently reported as two of the healthiest housing markets in the country. Source
Sources have reported to Crowdfund Insider that the platform has shut down; the online lender was providing lines of credit for up to $1,000; it last raised $3 million in February 2017. Source
Jet Capital is a Dallas-based online lender primarily lending to underserved small businesses; it was launched in 2015 and currently focuses on businesses with 20 or fewer employees; the firm has identified Albuquerque as a growing target market with over 28,000 businesses in its target range; the firm's cash advances average approximately $25,000 and with the payouts, the company also purchases rights to future sales. Source
Fifteen employees of Jinxing Investment are on trial in Shanghai for fraudulent lending of 1.5 billion yuan (US$220 million); the employees are charged with illegally raising funds and taking investments from the public that were not used for their intended use; Ji Jianhua, the company's chief financial officer, told the court that the investments were fake and that funds were directed to personal or related accounts of president Wang Mian; the company shut down in June 2016 and Wang Mian escaped and has not been found. Source
Marlette Funding has announced plans to cut one-fifth of its workforce as the company scraps plans for expansion to new verticals and remains focused on its online unsecured personal loans; the company has reported significant lending growth with over $3 billion in loans originated through its Best Egg brand in the first three years in business; the more conservative strategy follows some signs of increasing defaults, plans for new regulations and slowed capital investments. Source
Online lender Welendus has announced a Seedrs campaign with targeted fundraising of 300,000 British pounds ($375,060); firm provides short term financing options at affordable rates; plans to launch in the first quarter of 2017. Source
Avant and Marlette Funding are battling state law in Colorado; the state has a 12% rate cap for consumer loans and both lenders advertise loans that exceed that limit; both partner banks that work with the online lenders have filed lawsuits against Colorado claiming the interest rates they charge are acceptable by federal law because of the charters they hold from their state. Source
Online mortgage lending has helped to revive the market for mortgage loan securitizations; new online mortgage lenders are providing a new wave of mortgage loan securitizations for the market specifically with fix and flips; these loans are attractive to investors because of the high yields and offer investors shorter duration investments because of the fix and flip focus; despite defaults and structuring inefficiencies created from the 2008 financial crisis, institutional investors are placing confidence in these investments; LendingHome has been leading the market with steady issuance of fix and flip loan securitizations and the products have been performing successfully for investors indicating the niche investments could begin to scale more broadly. Source
Crowdfund Insider provides a roundup of news occurring in China's alternative finance market; the China Banking Regulatory Commission has released more details on its guidance for online lending partnerships with custody banks; also noteworthy is the potential initial public offering in the US by China Rapid Finance. Source