News 

Alt Lender Fountainhead Secures SBA Loan License

“Small Business Administration (SBA) loans have found a new avenue through which they can reach small businesses” reports pymnts.com. A press release issued on Wednesday (Feb. 13) said that alternative lender Fountainhead Commercial Capital can now offer SBA loans through its platform after securing a Small Business Lending Company (SBLC) loan program license from American Business Lending.The recent government shutdown forced the Small Business Administration to stall its lending operations.The company noted that it has also received final approval from the SBA. According to Fountainhead, the SBA has only issued…

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Markets News 

The riskiest part of the corporate debt market is inching toward a historic danger signal

“Those three charts all suggest that the corporate debt market is becoming bigger and riskier as time goes by” writes Jim Edwards for businessinsider.com. But the market for the riskiest type of risky corporate debt — leveraged loans — remains at an elevated level.Last year, the multiple of leveraged-buyout debt to earnings hit 5.8, its highest since the financial crash, according to LCD/S&P, a research organization that monitors the corporate debt market.Leveraged buyouts are among the riskiest debt deals in the corporate credit market.But 12% to 16% of all companies…

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News 

This start-up is bringing fast home equity loans to your smartphone bank app

“A Silicon Valley start-up is rolling out software that allows customers of lenders including U.S. Bank and Wells Fargo to apply for home equity loans through their banking apps while shaving weeks off the process” writes Alex Flynn for cnbc.com. “The way it used to be was that people had to fill out a paper form or work with a loan officer to get the home equity process started,” Ghamsari said.Now it’s hoping to grab more of the overall real estate loan market with products that let homeowners tap equity…

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AUD News 

Australia’s bruised big banks offered respite in inquiry wash-up

“Broker-originated loans currently account for up to half of some of the big banks’ mortgage books” reports businessinsider.com. Finance Brokers Association of Australia managing director Peter White said the big banks would use their branches to take the lion’s share, at a cost to consumers.The big Australian banks also need to retain sufficient capital to meet new regulator-imposed requirements being imposed in Australia and New Zealand, where they also operate.Many of the wealth management, insurance and financial planning units divested by big Australian banks in recent years were profitable but…

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News 

Prominent Republican wants to take student-loan payments out of your paycheck

“Borrowers could soon be required to pay back their federal student loans directly from their paychecks, if one powerful Republican gets his way” writes Jillian Berman for marketwatch.com. Proponents of payroll withholding for student-loan payments say the idea would help borrowers stay current on their loans and avoid default, while also ensuring taxpayers received a return on their investment, given that taxes pay for the federal student-loan program. Source: marketwatch.com

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News 

Consumer Protection Bureau Aims to Roll Back Rules for Payday Lending

“The way payday loans work is that payday lenders typically offer small dollar loans to borrowers who promise to pay it back by their next paycheck” writes Daniella Cheslow for npr.org. It would also limit payday lenders to only two attempts to withdraw money from borrowers’ accounts, a move designed to target the fees that payday lenders charge.”We strongly urge Kathy Kraninger to reconsider her decision to weaken the payday lending rule and allow it to move forward as planned without delay.”.  Source: npr.org

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News 

29-year-old aims to cut her $16,000 credit card debt in half this year—here’s the plan

“Now, she’s ready to turn things around: “It’s 2019 and time to start getting real about my credit card debt,” she wrote” writes -elizabeth Bracher for cnbc.com. The total represents the credit card debt she has racked up from over six years of moving expenses, vet bills, car repairs and more.That’s in addition to student loans, car loans and other kinds of debt.About 40 percent of millennials (defined here as those 20 to 35 years old) have credit card debt, according to a recent survey by debt consolidation service LightStream.”I…

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Markets News 

Investing startup Pagaya just raised $100 million to disrupt the credit markets using artificial intelligence, and it’s eyeing other industries next

“Enter Pagaya, a New York-based startup using artificial intelligence to evaluate loans” writes Meghan Morris for businessinsider.com. “That’s why an active ABS with artificial intelligence makes so much sense today, when a few years ago, it didn’t make sense …Krubiner said his ultimate goal is a quantitative real estate fund, built on the same principles of active artificial intelligence management.JPMorgan is cleaning up its database to do artificial intelligence better.Artificial intelligence has been the topic du jour on Wall Street. Source: businessinsider.com

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News 

Etihad approaches banks for over $500 million for Boeing deliveries: sources

“DUBAI (Reuters) – Abu Dhabi’s Etihad Airways has approached banks to raise over $500 million to finance four Boeing 787 Dreamliners it previously ordered, two sources familiar with the matter said” reports businessinsider.com. The state carrier sent a request for proposals to banks last week for the financing, which is likely to be provided through bilateral loans or loans involving a small club of lenders, they said.It is common for airlines to approach banks to help finance aircraft deliveries.Loans for 787s generally have a maturity of 12 years, the sources…

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Crypto News 

Blockchain Lending Firm Dharma Raises $7 Million From Coinbase Ventures, Others

“San Francisco-based blockchain lending firm Dharma Labs has raised $7 million from big investors including Coinbase Ventures, as the company confirmed to Cointelegraph on Feb. 5” writes Helen Partz for cointelegraph.com. The crypto lending industry has continued to grow in 2018, with crypto lending firm BlockFi having recorded a tenfold increase in revenue over the second half of 2018.Bronstein stated that Lever would facilitate peer-to-peer crypto lending by allowing two parties of a loan to be discoverable, as well as eliminating the role of the middleman by putting trust on…

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