News 

Wells Fargo fires head of consumer lending unit

“The dismissal did not relate to the business or operations of the lending business, or to sales practices” writes Ciara Linnane for marketwatch.com. WFC, -0.81% said Friday it has fired Franklin Codel, head of its consumer lending business, because of his actions in a communication with a former team member who was let go. Shares were indicating lower in premarket trade, and are down about 1% in 2017, while the S&P 500 SPX, -0.20% has gained 15%.The unit’s four heads will report to Chief Executive Tim Sloan, while the bank…

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Wells Fargo fires consumer lending head Franklin Codel

“Wells Fargo & Co said on Friday Franklin Codel, a senior executive vice president and head of its consumer lending organization, has been dismissed, effective immediately” reports foxbusiness.com. The company said Codel, who was senior executive vice president of consumer lending for just over a year, was not dismissed over the business or operations of consumer lending or its sales practices.In the interim, the heads of consumer lending’s four main lines of business will report to Wells Fargo Chief Executive Tim Sloan. Source: foxbusiness.com Share This:

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Crypto News Platforms 

Banks Beware. Etherecash Makes Serious Waves in P2P Lending, Sending, and Debit Cards. ICO Begins

“The Etherecash platform is a complete ecosystem to bring speed, security and reliability in the way we lend, send and spend” writes unknown author for cryptocoinsnews.com. With the Etherecash platform, those who are amongst the 2.5 billion persons without basic financial services, will be catapulted to a new era of blockchain based banking.Etherecash are holding an ICO to support the ongoing development of their platform and revolutionize the crypto banking sphere.Etherecash offers crypto backed Peer-to-peer loans that are simply based off the strength of users’ crypto-portfolios. Source: cryptocoinsnews.com Share This:

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News Platforms 

Goldman Sachs’ lending platform is booming

“As such, Goldman Sachs is likely to remain the dominant incumbent in the digital lending space for the foreseeable future” writes Maria Terekhova for businessinsider.com. Other banks may be tempted to emulate Goldman Sachs’ move into lending, but they should proceed with caution.Goldman Sachs launched its digital consumer lending platform, Marcus, in October 2016, and was already displaying rapid growth in June, when it announced it had originated $1 billion in loans in just eight months.Although consumer credit demand in the US is growing, and Goldman Sachs’ success with Marcus may tempt more of its…

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News Regulators 

Auto lending is vigorous even as high-risk delinquencies build

“In all, there were $1.2 trillion in auto loans outstanding in the U.S., up $23 million from the previous quarter” writes Rachel Koning Beals for marketwatch.com. Only about one-third of all outstanding subprime auto debt, that carried by the lowest-rated borrowers, was originated by banks and credit unions.That’s more than double the 4.4% delinquency rate for subprime loans made by traditional banks, a number that’s largely improved since the end of the financial crisis.Auto loans have grown for 26 straight quarters, drawing more scrutiny of the expansion of the riskiest…

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News Stocks 

LendingClub shares tumble 17% on plan to tighten credit scores

“Net revenue hit a record high of $154 million, though that was slightly shy of the consensus forecast of $157 million, Janney analyst John Rowan noted” writes Andrea Riquier for marketwatch.com. For the full year, the FactSet consensus is for revenue of $590.9 million and EPS of 3 cents.LendingClub LC, -17.67%   management said 2017 revenue would total $576-581 million, down from earlier estimates of $585-600 million, while the projected GAAP net loss would narrow to $69-65 million versus the $69-61 million forecast earlier.Rowan rates the stock neutral, and on…

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News 

Longer-term auto loans growing amid overall lending slowdown

“Six-year auto loans have become the most common terms used in auto financing, while loans of seven years or longer have also increased in popularity” writes Sven Gustafson for autoblog.com. CFPB says auto loans are the third largest category of household debt for Americans, behind mortgages and student loans.”The move to longer-term auto loans is opening up more risk for consumers,” CFPB Director Richard Cordray said in a release.The share of loans with terms of six years or more increased from 26 percent of all auto loans originated in 2009…

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News Regulators 

Jerome Powell, Trump’s nominee for Fed chair, will have this big banking issue to tackle

“The Fed interest payments started in 2008, during the throes of the financial collapse and Great Recession” writes Bruce Yandle for washingtonexaminer.com. In 2016, the Fed paid member banks $12 billion in interest earned on excess reserves it held for them.But so do excess reserves held by the Fed.In late 2016, the Fed held $1.9 trillion in excess reserves. Source: washingtonexaminer.com Share This:

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News 

Report: Lending disparities cost Fresno small businesses millions of dollars

“Those are just two findings in a study examining disparities in small business lending conducted by the Woodstock Institute, a nonprofit research organization that focuses on fair lending and financial systems reform” reports thebusinessjournal.com. Access Plus Capital is a community development financial institution (CDFI), which was created to provide financing options to disadvantaged populations.Baldev Birk, a technical assistance analyst with Access Plus Capital, said that refinancing onerous non-bank lending is a common part of their portfolio.The $79 million represents just fewer than 5,700 additional loans that businesses would have received…

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Markets News 

Fintech firm MarketInvoice joins rush into business lending

“MarketInvoice says it employs machine learning and artificial intelligence to provide a better service to business customers” writes Jeremy Warner for telegraph.co.uk. Fast-growing fintech company MarketInvoice is launching a business lending service, after advancing over £1.6bn to UK firms through invoice finance over the past six years.The business loans service, launched today, allows firms to obtain unsecured funds of between £10,000 to £100,000 over a 12-month term.A series of digital start-ups have begun moving into the space in recent months, including Tide and Starling, with the latter saying it will…

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