Hints and tips:
...Last year about 80 per cent of Lending Club’s $575m in net revenues came from transaction fees on $9bn of loans originated via WebBank, a federally-regulated lender based in Utah....
...The best known is probably WebBank, based in Salt Lake City, Utah, which has originated billions of dollars of personal loans for Lending Club and Prosper....
...Loans of between $5,000 and $50,000 will be provided by WebBank, the Utah-based bank that supplies all Lending Club’s personal loans....
...Instead of using state lending licenses, which SoFi does, Lending Club and others have partnered with WebBank, whose home state Utah doesn’t have a usury cap....
...One Ronald Bethune of New York filed suit last month alleging that the online lender’s relationship with WebBank — where Lending Club loans are originated by the Utah-based bank and then sold through Lending...
...FT Alphaville knows WebBank by another description: as the corresponding bank for online lenders like Lending Club, Prosper Marketplace and Avant....
...Most online lending executives refer to WebBank in highly complimentary terms....
...Its loans are currently originated by a regulated bank (WebBank) which makes LendingClub adhere to “bank-like” levels of risk management and compliance....
...Ronald Bethune of New York claims the platform’s relationship with WebBank, which is based in Utah where there are no usury laws, is an illegal attempt to circumvent interest rate caps elsewhere....
...WebBank too is said to be examining ways of adjusting its business model to work around the ruling....
...What’s more, in the US, the likes of Lending Club, Prosper Marketplace and Avant go so far as to rely on the same bank, Webbank, to also originate their loans for them....
...Lending Club then uses that money to buy a loan from WebBank, which is the company’s origination partner. If that’s confusing, let’s go the other way....
...And loans branded Prosper and Lending Club are both issued, in fact, by federally regulated WebBank....
...We do know that they’ve had nine credit checks in the last six months — which is odd, given that Lending Club says it, or rather its originating bank Webbank, won’t lend to borrowers who have more than five...
...the broader online lending industry in the US, parts of which use this exact mechanism to originate loans that they then pass through to investors (for example, Lending Club and Prosper Marketplace use WebBank...
...They find potential borrowers, use another secretive bank, Utah-based WebBank, to write the loans, and then sell them on to investors. The bank is critical....
...- Sure, WebBank could walk away in 2018 and anyway is a non-exclusive partner. Primary issuing banks are ten a penny; this is the new age of finance....
...loans issued to consumers by WebBank....
...Steel Partners II has already reversed into WebFinancial Corporation, an unlisted ”pink sheets” company whose primary asset is WebBank, a Utah industrial loan company....
...Steel Partners II has already reversed into WebFinancial Corporation, an unlisted “pink sheets” company whose primary asset is WebBank, a Utah industrial loan company....
...And they have no choice, as Steel made clear in a letter to investors: the fund has already reversed into WebFinancial Corporation, an unlisted “pink sheets” company whose primary asset is WebBank, a Utah...
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