SoFi has received preliminary ratings from Kroll Bond Rating Agency for a securitization portfolio including prime jumbo residential mortgage loans; the securitization includes 36 classes with 270 mortgage loans; 31 classes are rated AAA; the remaining classes are rated AA to B with one unrated class accounting for $1 million of the portfolio; the portfolio includes high quality mortgage loans with a comprehensive weighted average credit score of 777; the total principal balance of the portfolio is $168,790,946. Source
On Monday, ApplePie Capital announced new investment deals with TowerBrook Structured Opportunities Fund and a group of investors led by QED Investors and Fifth Third Capital; the TowerBrook Structured Opportunities Fund will invest $180 million in the platform's loans over the next two years; QED Investors and Fifth Third Bancorp led a Series B investment round for ApplePie Capital raising $16.5 million; ApplePie Capital has partnerships with 40 franchise brands and provides loans to support their franchisees. Source
In a letter to investors, Prosper has announced they are releasing their seventh generation credit model (PMI7) around December 20, 2016; Prosper also announced they are changing their credit bureau from Experian to TransUnion; according to Prosper, "Using TransUnion will allow us to leverage trended historical data on borrowers and make better underwriting decisions within the new credit model."; Prosper's rating system on loans from AA-HR will remain the same.
Moody's has issued comments on the OCC's announcement to offer a fintech charter; says the fintech charter would help reduce legal risks from partner bank funding; focuses on the effects from the charter on partner bank funding relationships; says banks could stop relying on partner banks to fund loan originations. Source
Payday lender, Advance America, and its representative association, the Community Financial Services Association of America (CFSA), have filed a motion with the court to halt regulatory pressure on banks to end relationships with payday lenders; the motion follows the decision by U.S. Bancorp and four other banks to end their relationship with Advance America citing regulatory pressure as a factor; regulators say they have done nothing to pressure banks to end relationships with payday lenders; the court motion is part of an ongoing litigation process involved with a court case filed by Advance America and the CFSA in 2014. Source
Able Lending has one of the industry's most unique business models, allowing small business lenders to source loans from their personal network to lower lending costs; Lend Academy interviews Will Davis of Able Lending for more insight on the platform's business; at Able Lending, personal network backers take a subordinated position, allowing the lead lender to get paid back first while offering a lower cost of borrowing overall; the firm has been successful with this lending model, reporting over 80% of loans utilizing backers; it has also seen steady origination growth, with volume growing from $3 million in the first year to $30 million in the second year and an expected $100 million in its third year. Source
Polychain Capital, a hedge fund that focuses on investing in digital assets such as bitcoin and ether has raised $10 million; the funding comes from venture firms Andreessen Horowitz and Union Square Ventures; the company launched in September with $5 million from 30 investors and is led by Olaf Carlson-Wee who was also the first employee of Coinbase; according to Olaf: "There will be many types of assets codified into the blockchain, and they are all not just going to be on the bitcoin blockchain — it's going to be a number of different assets here. And the best way to invest in that is a diversified portfolio." Source
LendingHome has reported over $1 billion in mortgage loan originations since it launched two and a half years ago; company is the leading marketplace lending mortgage loan originator in real estate; factors influencing the rapid growth include expansion to jumbo loans and a new investor platform for individuals; active in securitization, it has partnered with Nomura Securities International and developed the industry's first master trust securitization vehicle providing it with ongoing access to the securitization market. 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
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