Marketplace Lending News
April 18, 2017
Top Stories

First Associates Loan Servicing, the nation's fastest growing loan servicer, announced today that the company has been assigned a MOR RV1 Residential Vendor Ranking as a Consumer Finance Servicer from Morningstar Credit Ratings, LLC, New York with a forecast of stable.

David Kimball is on a mission.  Since being appointed CEO of Prosper Marketplace late last year, Kimball has stepped outside his former financial role as Prosper's CFO to take on a more operational-driven strategy. Along with FinTech industry guru Ron Suber, Prosper's president, Kimball is intent on growing loan volumes, offering lower average rates compared to traditional lenders, delivering higher returns to investors and returning Prosper to profitability.

While the prudential regulators are testing the waters in fintech regulation, other federal agencies have also focused on fintech's potential, both as a disruptor and as a potential market infrastructure tool. Marketplace lending has been a topic of regulatory and industry conversation for the last several years.

Co-Founder and Head of Operations Kathryn Petralia has worked for over twenty years with large and small companies focused on credit, payments, and commerce. The Furman University English major "immediately saw the value in using technology to reexamine lending" when future Kabbage CEO Rob Frohwein and Co-founder shared his idea for what became Kabbage. She believed funding decisions could be automated based on access to real-time data generated by numerous business operations rather than a lengthy, manual process.

Funding Circle, the world's largest peer-to-peer/marketplace lender by volume, is scaling down its property lending, with a view to stopping altogether by mid 2018. The company, which is active in the UK, US, Germany and the Netherlands, says the decision will allow it to re-focus its resources on its core small business lending product. Property loans currently account for around 5 per cent of Funding Circle's revenues globally. 

In the last two weeks, WebBank and Cross River Bank-federally insured banks chartered in Utah and New Jersey, respectively-filed separate federal court actions (WebBank Complaint; Cross River Bank Complaint) against the Administrator of Colorado's Uniform Consumer Credit Code, seeking declaratory and injunctive relief. The Banks assert that loans they originated in collaboration with non-bank online lending platforms are exempt from Colorado's statutory limits on interest rates and fees.


As demand from Wall Street for securitization of marketplace loans continues to grow, so does the scrutiny from rating agencies and investors. This informative 30-minute webinar explores successful strategies for structuring transactions for securitizations to receive favorable consideration from the rating agencies.

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