US Fintechs Tightening Credit Criteria on Consumer Loans

Platforms such as SoFi, Prosper, LendingClub and Avant have tightened their underwriting criteria as of late; loan pools packaged into asset-backed securities now have shorter maturities and higher credit scores; Rosemary Kelley, a senior managing director at Kroll stated, “We have seen many of the platforms tightening their underwriting or essentially eliminating certain segments. They are changing certain criteria in order to move up-tier somewhat in terms of the credit that they’re taking.” Bloomberg reports on other trends in the consumer lending market. Source

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