[jcoop]

CAN's shift in their renewal eligibility policy from 50% to 75% paid down laid bare the fact that a very large chunk of their portfolio was only still in business because they kept renewing them. Renewals/double dipping/payoffs are arguably a greater threat to this lending market than stacking. CAN is policing their own book and if/when they open their doors again, their credit policy will likely look a lot different. The other big lenders will likely take a page from CAN's playbook and tighten up on renewals and payoffs too. Also, with the announcement of the OCC offering limited charters to fintech companies, a move to more conservative underwriting is heading this way for any company going that route. The OCC isn't going to charter any lender that doesn't actually UW capacity to repay their loan. Lending into top line revenues is going the way of the dinosaur or will only be done at rates seen in the stacking space.

The days of riding the gravy train with biscuit wheels are over, folks.

I apologize but I had not heard of the Treasury department requiring charters for lenders. Can you please go into a little more detail about this?

[Sean Cash]

I apologize but I had not heard of the Treasury department requiring charters for lenders. Can you please go into a little more detail about this?

This would not be required, just an option.