Madden v Midland Funding
Some of you may have heard about this case and that it may/might/could/is already affecting marketplace lenders.
Miss Madden had a Bank of America credit card and defaulted on her payments. Midland Funding is a debt buyer and collection agency based in San Diego. Midland bought the debt of Miss Madden, who is a NY resident, and added additional interest costs to her debt balance and tried to collect the total. Madden thought this was wrong and filed suit.
In Click Here To Continue
Lending Club has been in the news alot lately and most of it bad.
Let's face it, Lending Club is not the only marketplace/peer to peer lender but they are the largest here in the US and they are definitely the face and the barometer of the industry.
Lots of things are going on in the industry and it would not be unreasonable to ask yourself Is Marketplace Lending Still Safe? The answer is Yes it is but we need to understand the risks.
More Regulation Coming
After the Lending Club loan sales Click Here To Continue
Another month has come and gone on my AutoInvest plan so let's check results.
Due to my slacking on my investment responsibilities, I have yet to implement my AutoInvest on Bitbond so my only option now is still Loanbase. Let's see how I did.
This month has a little more red on it than the previous 2 and this was something I expected. The repayment history is still pretty strong though as 2 of these loan payments (1 paid, 1 not) were loans I selected and the other 72 were from my AutoInvest Click Here To Continue
You may have heard of the Lending Club shakeup in their executive team last week. The shakeup came from the fraud the former executives perpetrated on a small subset of loans. In response to these actions, the new CEO Scott Sanborn wrote a letter to larger investors about what happened, what they are doing, and how they are looking at and managing data in the future.
I was able to get a copy of this letter and short presentation and have it available for you to read. You can download it right Click Here To Continue
Lending Club CEO Renaud Laplanche, generally regarded as the face of marketplace/p2p lending has resigned his position at Lending Club.
The resignation is based on the discovery that $22 million worth of loans were knowingly sold to an investor when the loans did NOT meet that investors buying criteria. It's yet to be seen if additional executives or employees will be let go or not although the CNBC articles says 3 other senior managers were let go too.
It should be noted that the loans were Click Here To Continue
To say that I have learned some things from this Auto Invest experiment is quite the understatement. So far Loanbase is really up to the task. I'm going to have to launch my Bitbond program soon based on these results. Let's look at the results in more detail for April after a profitable March.
Last month I did a loan by loan assessment, which you can see on my March report here. Going forward I will be tracking total ROI (return on investment) or ROIC (return on invested capital).
Let's Click Here To Continue
This week the largest conference in the peer to peer/marketplace lending industry, LendIt 2016, is going on. In the days leading up to the conference, I got the chance to speak to lots of movers and shakers including platform operators. One of the most interesting lending platforms out there is a new area for p2p lending but one of the oldest forms of financing, POS financing or financing at the Point of Sale.
How many of you are old enough to remember when stores used to do lay away? The Click Here To Continue
So far, I can honestly say I have one success and one failure on my AutoInvest program. Let's start with the failure first.
This isnt exactly my fault but my adding Bitcoin to my BTCJam account happened to almost exactly coincide with their announcement that they are exiting the US in terms of lenders and borrowers. Jam has said its for 2 reasons: regulatory climate in the US and their founding as an emerging market (Brazil first) lending platform to give options to those in these emerging markets Click Here To Continue
There's lots of news in FinTech so let's look at some of the bigger stories from the last week.
Is there trouble with funding for p2p loans?
A Bloomberg article from earlier this week discusses how investor service Moody's is downgrading a portion of a group of bonds issued backed by loans on the Prosper platform.
Impact: For you and me this seems like it would not be that impactful as this is very large institutional high finance stuff. However, the velocity of money, how fast money moves, Click Here To Continue
I'm not done setting up all my AutoInvest stuff yet, however 2 of my 3 accounts are set up: BTCJam and Loanbase. I thought I would show a screenshot from each and let the picture tell the story.
I started with BTCJam so I thought I would show theirs first.
What you don't see here are two things: 1) the term I selected caps out at 6 months so no 12 month loans for me and 2) No loans selected.
There are only 13 active loans listed and most of them are 1 year loans. The resulting Click Here To Continue