Hints and tips:
...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....
...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....
...WebBank too is said to be examining ways of adjusting its business model to work around the ruling....
...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...
...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...
...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....
...Any determination that the Bill Me Later, Inc. business does not properly comply with laws and regulations could have a material adverse effect on WebBank, as a participant in Bill Me Later, Inc.’s business...
...Steel Partners II has already reversed into WebFinancial Corporation, an unlisted “pink sheets” company whose primary asset is WebBank, a Utah industrial loan company....
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