Lending Industry News
July 18, 2017
Top Stories

The increasing size of quarterly issuance alongside involvement from a larger group of ratings agencies suggests institutions are more and more bullish on the asset class. The second quarter of 2017 saw issuance of P2P and marketplace lending securitization reach $3bn worth of deals, representing a 76 per cent year-on-year growth rate, according to Peer IQ. The period saw nine marketplace lending securitizations meaning to date cumulative issuance has reached $21.9bn across 92 deals.

American consumers increased their borrowing in May at the fastest pace in six months, reflecting a sharp rebound in the category that includes credit cards. The Federal Reserve reported Monday that total consumer borrowing rose by $18.4 billion in May, the strongest gain since a $25.1 billion increase in November. In addition, April's gain of $8.2 billion, the weakest increase in nearly six years, was revised up to a more respectable increase of $12.9 billion.

I don't have center court seats at Madison Square Garden, nor 50 yard line tickets. I did, however, have a once-in-a-lifetime front row seat to the creation of a new industry. I am Gordon Suber, Ron Suber's father. Like many, I heard of the nascent peer-to-peer industry in 2012. It was explained, it was demonstrated, I read all about it. Like others, I had concern and suspicion that it wasn't real, was perhaps a Ponzi scheme or just a fad. Nevertheless, I opened accounts at a couple of platforms to try it myself.

It's classic subprime: hasty loans, rapid defaults, and, at times, outright fraud. Only this isn't the U.S. housing market circa 2007. It's the U.S. auto industry circa 2017. A decade after the mortgage debacle, the financial industry has embraced another type of subprime debt: auto loans. And, like last time, the risks are spreading as they're bundled into securities for investors worldwide.

Spotlight on Services: Primary Loan Servicing
First Associates' best-in-class primary loan servicing will help your business excel. From A-to-Z and back again, we cultivate positive and respectful borrower relationships, focus on service and maximize capabilities with cutting-edge technology. We offer loan and lease servicing across a wide variety of asset classes and employ a team of highly-trained, professional Loan Advisors.

With First Associates, you get a trusted partner with 30+ years of experience, the only company in its class to have earned a Morningstar MOR RV1 ranking for overall excellence and an unparalleled level of compliance as evidenced by our zero-discrepancy SSAE-16 audit.

Upcoming Events
ABS East
September 17-19
Fontainebleau Hotel
Miami Beach, FL

LendIt Europe
October 9 - October 10
London Intercontinental
London, United Kingdom

Save 15% with promo code FIRSTASSOCIATES15
October 11-13
Fairmont Dallas
Dallas, TX

California Financial Services Association
October 12 - October 14
Ritz Carlton Hotel Rancho Mirage
Rancho Mirage, CA

Powersports Finance
October 24 - October 25
Wynn Las Vegas
Las Vegas, NV

Auto Finance Summit 17
October 25 - October 27
Wynn Las Vegas
Las Vegas, NV

American Banker Digital Lending + Investing Conference
November 2 - November 3
Sheraton New York
New York, NY