[ADiamond]

Do you think alternative lenders should require other underwriting functions such as a search through OFAC like traditional banks do before opening someone's account?


http://www.cnbc.com/2015/12/08/onlin...er-source.html

[Triton]

https://www.youtube.com/watch?v=QJJFitq3lQQ

Whatever happened to these guys??

Reporter: "...can you describe to me in as much detail...what did the gunmen look like?"

Eye Witness: Watch the video to hear her description

[AndyYSCISOdept]

Do you think alternative lenders should require other underwriting functions such as a search through OFAC like traditional banks do before opening someone's account?


http://www.cnbc.com/2015/12/08/onlin...er-source.html

I think that the more requirements (hurdles) you put in place to get funding you are losing a key element to our success which has been and always will be the speed and ease with which funding is attained.

[mcaguru]

is prospor lending the money or are they just a gateway? if they are a gateway could have bad people chosen that specific deal to fund and just used prosper as the aggregator for the deal? or i don't know what I'm talking about?? !

so for instance i want to fund Mr X so i tell him go to that site and create a funding request and ill approve your deal...

[Sean Cash]

is prospor lending the money or are they just a gateway? if they are a gateway could have bad people chosen that specific deal to fund and just used prosper as the aggregator for the deal? or i don't know what I'm talking about?? !

so for instance i want to fund Mr X so i tell him go to that site and create a funding request and ill approve your deal...

Prosper is the marketplace technically but all the borrowers are anonymous so you don't know which loan belongs to who. Prosper is responsible for determining who is eligible to be listed on the platform, for the underwriting and approving the loans. WebBank issues the loans for them and then sells them to Prosper to be serviced. The investors on the platform are not lenders. Instead Prosper issues a note/bond for every loan they do and investors buy pieces of that. The only thing backing each note is the performance of the loan it's tied to. The investors are actually lending money to Prosper.

[J.Celifarco]

Web Bank being messed up in this is not good for this industry at all. They have to handle banking for over 50% of the lenders in this industry. This is going to open a giant can of worms that wont be good for anyone

[AndyYSCISOdept]

I completely agree. That old saying about all publicity is good publicity does not apply in this instance. In an industry looking for increased legitimacy, a link to terrorism, no matter how vague, is not a good thing. NOT AT ALL! However in the most up to date article I read they had not used the terms alternative lending etc., they used "bank loan".

[mcaguru]

Prosper is the marketplace technically but all the borrowers are anonymous so you don't know which loan belongs to who. Prosper is responsible for determining who is eligible to be listed on the platform, for the underwriting and approving the loans. WebBank issues the loans for them and then sells them to Prosper to be serviced. The investors on the platform are not lenders. Instead Prosper issues a note/bond for every loan they do and investors buy pieces of that. The only thing backing each note is the performance of the loan it's tied to. The investors are actually lending money to Prosper.

Thanks Sean!

[J.Celifarco]

I completely agree. That old saying about all publicity is good publicity does not apply in this instance. In an industry looking for increased legitimacy, a link to terrorism, no matter how vague, is not a good thing. NOT AT ALL! However in the most up to date article I read they had not used the terms alternative lending etc., they used "bank loan".

What scares me is that some low level congressman sees this and decides to make taking down alternative lending their pet cause.. Once that happens then what actually happened means nothing and how people spin the story is what will matter

[AndyYSCISOdept]

^^^What you are describing seems to be the order of the day to advance your career in Washington. Pretty sure the "Red Scare and McCarthyism" started in much the same manner.

[Fundyman]

Web Bank being messed up in this is not good for this industry at all. They have to handle banking for over 50% of the lenders in this industry. This is going to open a giant can of worms that wont be good for anyone

I didn't even hear about the Web Bank part. If I had heard that, I would have TRULY sobbed last night, when a friend of mine called me telling me that this industry is about to be regulated by Homeland as early as next month! He used to manage money transfer companies, and the same thing happened after a major money laundering incident.

They even thought it was a joke, that the Feds didn't really get involved in this type of things, or didn't even exist as described, or didn't care to get involved in this type of stuff, until an agent came in flirting w/ a cashier, & asked to make a transfer to Haiti w/out any ID....

Basically, Web Bank being associated with so many cash advance companies that once they get an inch deep into their investigation, MCA industry got a problem. & because the amount funded was so small, any advance over $10K may have to be regulated. God only knows.. Long story short, my buddy told me, said: "Get your money now! After that, forget about it!"

[J.Celifarco]

all we can do is wait and see what happens. Unfortunately this is completely out of our control

[AlexSMF]

What this industry needs is a lobbying/government relations arm to push for favorable legislation and engage with state and federal lawmakers. Putting together a Super-PAC may also not be a bad idea. When you organize and start donating money to politicians and engaging them, they start to sing a very very different tune.

[Chambo]

What this industry needs is a lobbying/government relations arm to push for favorable legislation and engage with state and federal lawmakers. Putting together a Super-PAC may also not be a bad idea. When you organize and start donating money to politicians and engaging them, they start to sing a very very different tune.

Already in the works

[J.Celifarco]

Already in the works

yeah I always hear its in the works but never that it has been acomplshed

[AlexSMF]

As someone who worked for a U.S. Congressman and 2 New York City Council members I know quiet a lot about this, so if anyone out there is actually setting up a PAC or an industry relations association then feel free to pick my brain.

[Zach]

What's even worse is that this dude lived in my apartment complex.

IMG_0345.jpg

IMG_0346.jpg

[staten]

yeah I always hear its in the works but never that it has been acomplshed

The issue is all going to be centered about the validity and "true lender" status of originating banks. These banks are regulated and some are extremely diligent about the platforms they work with-others not so much. CR just held 10% of a securitization they did with marlette. I could go on and on.

I will say that i'm shocked that prosper is making loans at around 60% of gross salary. Do they provide static pool defaults? i'm sure that they stretch out the time period default classification, but is the data provided to investors?