Weekly Online Lending Snapshot – March 17, 2017
The Federal Reserve Open Market Committee (FOMC) voted to raise the target rate for the federal funds rate to 0.75 to 1 percent, stating “…that the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace.” The Office of the Comptroller of the Currency (OCC) published a draft supplement called Evaluating Charter Applications From Financial Technology Companies, indicating that the OCC is moving forward with its plans to offer a special purpose national bank charter for fintech companies. Kroll, a bond rating agency, reported that it had assigned preliminary ratings to notes issued by Marlette Funding Trust 2017-1 (MFT 2017-1), a $257.44 million consumer loan ABS transaction that is expected to close on March 23, 2017. Biz2Credit published their February 2017 Small Business Lending Index report. It indicates that small business loan approval rates have increased for the seventh consecutive month at Big Banks, up ~1% year-over-year. Approvals at Small Banks were roughly flat year-over-year, and Alternative Lenders and Credit Unions have seen declines over the same period. Institutional lender approvals reached a new high for the index at 63.5%. Lastly, Toronto-based DH Corporation TSXDH (D+H), announced that it launched a mobile-first, small business lending platform focused on helping U.S.-based banks and credit unions lend to small businesses.
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