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Volume 2017 - Number 44

November 17, 2017

Cleveland Fed Calls ‘Peer-to-Peer’ Loans ‘Predatory’ As Marketplace Issuance Continues to Grow

So-called peer-to-peer loans “resemble predatory loans in terms of the segment of the consumer market they serve and their impact on consumers’ finances,” according to a study published last week by the Federal Reserve Bank of Cleveland. The warning comes as issuance of ABS and MBS from marketplace lenders continues to grow, with growing acceptance from rating services and investors.

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This weekly covers the secondary mortgage market, including mortgage-backed securities and asset-backed securities.

 

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Poll

With originations expected to drop in 2018, will your shop turn to non-QM/non-prime mortgage products as a way to bolster volumes?

Yes, definitely. We’re planning a launch.

33%

No. It’s still difficult compliance/regulatory-wise.

20%

Maybe. It’s under consideration.

33%

Not now. But things could change as 2018 progresses.

13%