Interesting Articles

 SoFi Tackles the Huge Student Loan Problem

In March of this year it was reported that total outstanding student loan debt in this country had topped $1 trillion for the first time. More students are taking on more debt than ever before. Even for those who qualify for federally subsidized programs, the debt burden can be immense. Enter SoFi (short for Social Finance). They are bringing a hybrid p2p lending model to student loans and are already making a big impact.

Recently I chatted with Dan Macklin, co-founder and VP of Business Development at SoFi, about his company and how they are changing the student loan business.

 Lending Club and Prosper Issue $99.8 Million in New Loans

Another great month at Lending Club combined with a significantly down month at Prosper meant that we still haven’t quite broken $100 million in loans in one month yet. I thought it was a safe prediction that milestone would be broken in November. But Prosper was down over 20% from last month which certainly caught me by surprise. Let’s dig a bit deeper into the numbers at both companies.


A Financial Plan for the Truly Fed Up
NY Times – Your Money By Ron Lieber

PEER-TO-PEER LENDING In early 2011, I expressed wariness about relatively new services like Lending Club and Prosper that allow individuals to invest money in loans that other people take out. Since then, however, the services have been humming along quite nicely, delivering returns of roughly 7 percent to investors who spread their money in small bits among hundreds of loans to the most creditworthy borrowers.

America’s new subprime boom: This time it’s cars

The auto industry has been one of the few truly bright spots in the US economy since the financial crisis.
After a terrifying crater during the worst of the panic—albeit with a brief spike induced by the “cash-for-clunkers” program — car sales have crawled back to something like normal. And updates on auto sales from the big car makers Oct. 2 showed Ford Motor and Chrysler Group expect to sell cars at the fastest pace since the financial crisis struck. Good news, right?

Looking For 10% Yields? Go Online For Peer To Peer Lending

After six years of experience and some bumps, including a financial crisis and ensuing recession, peer-to-peer (P2P) lending has finally earned its place on an income investor’s menu.

101: Peer-To-Peer Business Funding
The HBS Blog

While the worst of the global financial crisis is now three years behind us, one area of the economy that has yet to fully recover is the small-business loan market. Because large banks are still dealing with the economic fallout, and trying to reduce the size of their loan portfolios, most of them are only interested in lending money to their biggest, most creditworthy clients. So where is an entrepreneur to go when in need of a loan for his business? One answer may be to look to the world of peer-to-peer (P2P) lending.

LendingClub Brings Another Morgan Stanley Bigwig on Board
Bloomberg Tech Deals

LendingClub, the peer-to-peer Internet lender, has landed another Morgan Stanley heavyweight as part of its push to go from niche to mainstream.
LendingClub Brings Another Morgan Stanley Bigwig on Board

California Real Estate Recovery on The Horizon

A look at the California real estate market has investors asking whether now is the time to buy with the economy slowly on the mend. In an breakdown from California Real Estate Post, the market looks prime to return.

Foreclosures At a 4-Year Low

Foreclosure filings fell in March to their lowest level in four years, according to real estate data provider Realty Trac. For the first time since July 2007, the nationwide number of filings fell under 200,000 — a 4% drop from the month before and a 17% decrease from March of 2011. However, the news isn’t as good as it may sound.

Are Mortgage Credit Standards Loosening? (Hint: No)
Wall Street Journal

It’s no surprise to anyone who has applied for a loan recently that banks are being far more careful. But a new report shows just how tight conditions have become — and how even borrowers with favorable credit profiles are being denied.

An Innovative Boutique Approach to Raising Capital

Strategic Assets Partners LLP Offers Bespoke Ways to Raise Capital for Alternative Investments

Big Investors Are Piling Into the ‘Peer-to-Peer’ Lending Market…
Wall Street Journal

After years of hype and occasional blowups, the “peer-to-peer” lending market, which connects borrowers with mom-and-pop lenders, is starting to attract professional investors.

Former Morgan Stanley Chairman & CEO join Peer-to-Peer Lender Board
Financial Times

John Mack, the former chairman and chief executive of Morgan Stanley, is to join the board of a peer-to-peer lending company that aims to bypass banks and extend credit directly to borrowers through the internet.

Why people hate the banks

You can’t read the series without wondering whether banks have learned anything from the foreclosure crisis, which resulted in a $25 billion settlement with the federal government and the states. That crisis was the direct result of shoddy, often illegal practices on the part of the banks, which caused untold misery for millions of Americans. Part of the goal of the settlement was simply to force the banks to treat homeowners with some decency. You wouldn’t think that that would be too much to ask. But it was never going to happen without the threat of litigation.

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