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securitization

News RoundupOnline Lending
·Jan. 13, 2017

Follow Up Friday: PeerIQ’s Fourth Quarter Securitization Report

PeerIQ released its fourth quarter "Marketplace Lending Securitization Tracker" this week; marketplace lending accounted for $2.4 billion of the securitization market in the fourth quarter; data from the fourth quarter report shows securitization investments as an increasingly important source of capital for marketplace lending platforms; in 2016 70% of loans were invested in through securitizations.  Source

PeerIQ 4Q16 Exhibit 15

 

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News RoundupOnline Lending
·Jan. 12, 2017

Webinar Replay: LendIt Forum Presents Key Considerations for Risk Retention in Securitization

LendIt's most recent forum, Key Considerations for Risk Retention in Securitization, was held on Wednesday, January 11, 2017; the webinar provided insight on new risk retention regulations for securitization in effect beginning December 24, 2016; speakers provided insight on a range of securitization related topics including optimal risk retention structures, commercial considerations related to sponsors and requirements necessary for majority owned-affiliates; a replay of the webinar is now available.

Marketplace Lending Forum-  Key Considerations for Risk Retention in Securitization

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News RoundupOnline Lending
·Jan. 11, 2017

Webinar Today: LendIt Forum Presents Key Considerations for Risk Retention in Securitization

LendIt will be hosting a forum today on risk retention in securitization at 2:00 PM EST; the forum will be held in conjunction with Cadwalader and Lending Times; speakers will provide insight on key factors to consider in choosing the optimal risk retention structure, commercial considerations related to sponsors including brand and investor relationships, requirements necessary to establish a majority owned-affiliate including the amount of equity that must be retained by the sponsor versus an investor and other related topics; register here and join the webinar today.

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Peer to Peer Lending
·Jan. 10, 2017

An Introduction to Securitization

Before the financial crisis the vast majority of the population had never heard of a securitization. But thanks to the...
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News RoundupOnline Lending
·Jan. 10, 2017

Webinar: LendIt Forum Presents Key Considerations for Risk Retention in Securitization

LendIt, in conjunction with Cadwalader and Lending Times, will host a forum on securitization this Wednesday, January 11th at 2:00 PM EST; the webinar will focus on key factors to consider in choosing the optimal risk retention structure, commercial considerations related to sponsors including brand and investor relationships, requirements necessary to establish a majority owned-affiliate including the amount of equity that must be retained by the sponsor versus an investor and other related topics; speakers include Philip Bartow of River North, Bruce Bloomingdale from Cadwalader, Wickersham and Taft, Rupert Chisholm from One William Street Capital, Abe Kahan of CommonBond, Dylan Schuler of CommonBond and Gregg Jubin from Cadwalader, Wickersham and Taft; learn more by registering here today.

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News RoundupOnline Lending
·Jan. 13, 2017

Webinar Replay: LendIt Forum Presents Key Considerations for Risk Retention in Securitization

A replay is now available for LendIt's Key Considerations for Risk Retention in Securitization forum which was held on Wednesday, January 11, 2017; the webinar provided insight on new risk retention regulations for securitization in effect beginning December 24, 2016; speakers talked about a range of securitization related topics including optimal risk retention structures, commercial considerations related to sponsors and requirements necessary for majority owned affiliates.

 

Marketplace Lending Forum-  Key Considerations for Risk Retention in Securitization

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News RoundupOnline Lending
·Jan. 11, 2017

Lend Academy Article: An Introduction to Securitization

Securitization has become increasingly utilized by marketplace lending platforms and in 2016 a record number of deals were done; Lend Academy provides details on securitization structuring, Lending Club's recent securitization and the importance of transparency in their article; in Lending Club's December securitization the total amount of loans in the portfolio was approximately $131.3 million and the portfolio was rated by Kroll Bond Rating Agency.  Source

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News RoundupOnline Lending
·Jan. 11, 2017

Video of the Week: Current State of the Securitization Market

The securitization market for marketplace loans has been increasing in recent years, in reviewing the State of the Securitization panel from LendIt USA 2016 we hear about the deals getting done, new risk retention requirements and what issues crop up when selling to investors.

Panelists covered the increase in rated securitizations from Moody's, Fitch and Kroll, noting the overall market is still small compared to auto or credit cards however it continues growing.

The new risk retention requirements will force sponsors to hold a residual of equity interests when in the past some were able to sell off 100%, though it would depend on the sponsor and the deal.

Common issues when selling deals

- Investors want to know how loans are underwritten, serviced and what does loan performance look like

- Length of performance history is a common theme, investors want to know how the asset performs as compared to credit card deals or auto securitizations

- Selling the deal in comparison to a similar asset helps to mitigate questions and analyze loss scenarios

- Investors want to see platforms retain risk

- True lender, Madden v. Midland, they want to avoid a deal that ends up being dragged through court, like many subprime mortgage securitizations

- Servicing needs to have capacity to make calls and get payments in, whether the servicing is in house or outsourced

To hear more about risk retention, please signup for our LendIt Forum scheduled for today at 2:00 PM EST. You can register here.

Check out the full video interview here:

 

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News RoundupOnline Lending
·Jan. 10, 2017

Chart of the Week: MPL Securitization Issuance by Originator

PeerIQ has released its fourth quarter "Marketplace Lending Securitization Tracker" with details on the marketplace lending securitization market; the chart below shows the marketplace lending securitization issuance for the top 10 originators; SoFi leads the list with $6.85 billion in securitized loans, followed by Prosper and Avant.  Source

securitization-chart-2

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News RoundupOnline Lending
·Jan. 9, 2017

Webinar: LendIt Forum Presents Key Considerations for Risk Retention in Securitization

Securitization continues to be a key source of capital for many marketplace lenders; LendIt, in association with Cadwalader and Lending Times, will host a forum on Wednesday, January 11th at 2:00 PM EST; the webinar will focus on key factors to consider in choosing the optimal risk retention structure, commercial considerations related to sponsors including brand and investor relationships, requirements to establish a majority owned-affiliate including the amount of equity that must be retained by the sponsor versus an investor and more; register today.

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