Weekly Online Lending Snapshot – May 5, 2017
The Federal Reserve released its Federal Open Market Committee (FOMC) statement on Wednesday. Largely expected by investors, the FOMC left the federal funds rate target unchanged at this month’s meeting at 0.75% to 1% citing a recent slowdown in growth. Also on Wednesday, it was reported that the Trump Administration would be replacing Comptroller Thomas Curry at the Office of the Comptroller of the Currency (OCC). What this means for the future of the OCC’s proposed special purpose fintech charter is unclear. The Consumer Financial Protection Bureau (CFPB) announced it filed a suit against four ‘Tribal Lenders’ who, according to the CFPB made small-dollar loans between $300 and $1,200 and charged rates between 440 and 950 percent in violation of state usury laws. China Rapid Finance Limited (XRF) became the latest China-based online lender to take their company public in the U.S. 10,000,000 American depositary shares (ADSs) were priced at US$6.00 per ADS, with a total offering size of US$60 million and began trading last Friday. Former Treasury Secretary and LendIt Keynote Speaker Larry Summers published an article on the future of banking. The article, aptly titled “Larry Summers on the future of banking” covers a conversation Mr. Summers had with Markus Brunnermeier at the Fintech @ Princeton conference last week. You can watch the full video here. First Associates announced that it became the latest fintech player to use artificial intelligence as part of its product offering. Lastly, SoFi Consumer Loan Program LLC (SCLP) filed form ABS-15G with the SEC this week. SCLP 2017-3 represents the third consumer loan securitization of 2017 for the SoFi.
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