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MonJa Monthly News Update- February 2016

In Industry News by Kitty LinLeave a Comment

Here are some of the top stories and trends of February 2016 for marketplace lending investors and industry watchers: Industry News: 02-03-2016– FDIC Puts Up More Road Blocks for Marketplace Lenders  (Pepper Hamilton LLP) Based on the FDIC’s latest insights on marketplace lending, Pepper Hamilton summarizes specific risks that banks need to examine when dealing with marketplace lenders. 02-05-2016– Misconceptions …

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Moody’s “downgrades” Prosper-backed deal despite consistent performance

In Credit Risk Modeling, Industry News, Risk Management by James WuLeave a Comment

Earlier this month, Moody’s put the C notes of the Prosper/ Citi securitizations CHAI 2015-PM1 / 2015-PM2 / 2015-PM3 on a review for downgrade. The most material change in the forecast was an increase of expected cumulative lifetime net loss to 12%, from 8% to 8.5% of the 3 transactions. On the reason for this downgrade watch, a Moody’s spokesperson …

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Lending Club Performance – The Good And The Bad (Feb 2016)

In Credit Risk Modeling, Industry News, Marketplace Lending by James WuLeave a Comment

As I previously wrote, some of the recent coverage on Lending Club’s credit performance is somewhat one-sided, and we believe Lending Club’s loan performance is broadly in line with expectation. That said, the actual performance depends on the specific segment in question, which we will explore in greater detail in this post. Similar to what some of the commentators have …

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Marketplace Lending Outlooks

In Industry News by Kitty LinLeave a Comment

At MonJa, we strive to support industry watchers and investors further their understanding of the marketplace lending sector. Several financial enterprises release their investment outlooks on marketplace lending. Here are some general trends to be cognizant of: – FinTech Partners’ February 2018 Overview– The PDF reports provide a broad coverage of transactions specifically in the alternative lending space.  –K&L Gates FinTech Regulatory and Litigation …

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LendingClub did not “misfire” in their underwriting

In Credit Risk Modeling, Industry News, Marketplace Lending by James WuLeave a Comment

Late last week, there was a Bloomberg Business article on LendingClub’s recent “misfiring” of loan origination models. While I personally enjoy most of Bloomberg’s coverage of marketplace lending (positive or negative), this article appears to have taken a recent LC-Advisor report out of context. Below are a couple actual data points on LendingClub’s underwriting performance: 1. Consistent performance on quarterly …

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MonJa Monthly News Update- January 2016

In Industry News by Kitty LinLeave a Comment

Here are some of the top stories and trends of January 2016 for marketplace lending investors and industry watchers: Industry News: 01-31-2016 How Alternative Lenders Are Challenging the Traditional Value of Consumer Credit Ratings (Finance Magnates)-FinTech companies continue to find new ways to measure credit worthiness of borrowers, such as abandoning FICO scores, assessing how applicants fill out their application, …

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Top 3 Marketplace Lending Insights in 2015

In Credit Risk Modeling, Industry News by Joanna LaiLeave a Comment

Over this past year, the MonJa team has provided our credit risk insights (and our intern’s cartoon drawings) on our company blog. Investors and partners often refer to these entries (common comment: “Your team really knows what it’s talking about…” Well geez, thanks. Only been in credit risk analytics for 20 years…). These comments have led to richer conversations on how investors …

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What We Learned At Industry Conferences: Marketplace Lending Trends

In Company News, Industry News by Kitty LinLeave a Comment

Earlier this month, MonJa attended the IMN Investor’s Conference on Marketplace Lending, AltFi Global Summit, and American Banker’s Marketplace Lending and Investing in New York. For those who were not able to attend, we present an overview of common themes and challenges that were discussed among issuers, service providers, banks, and investors. We also give a quick recap of some of …

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How Can Loan Investors Prepare For Economic Shock?

In Credit Risk Modeling, Industry News by Joanna LaiLeave a Comment

As the end of the year approaches, many investors show concern about the potential slowdown in the economy. This caution is with good reason, as the slowdown in China and lull in US job growth point to a high likelihood of the US economy being affected. A recent Washington Post Article, “Economists are starting to warn about the risk of a new U.S. recession”, confirms this point, …

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4 Ways An Interest Rate Hike Will Impact Investors

In Credit Risk Modeling, Industry News by Jesse VelezLeave a Comment

This post was originally featured on October 5, 2015, in Orchard Platform’s Thought Leadership Series, where blog series where marketplace lending leaders share their industry insights. Below I share insights gained from my 10+ years of experience overseeing the loss forecasting of $9+ billion diverse small business lending products and managing $100+ billion in retirement assets. On September 17 the Federal Reserve …