Marketplace lending

WASHINGTON — Two top Senate Democrats are calling on financial regulators to better examine the role of financial technology firms and how their activities interact with the existing regulatory structure.

In an acknowledgement that many U.S. small businesses cannot qualify for a bank loan, a federal agency that assists minority-owned firms is now partnering with a pair of online lenders.

CommonBond is doubling down on the education-debt market, which has been a pocket of tranquility in an otherwise volatile online lending sector.

The fragmentation of the U.S. regulatory system and uncertainty around what agencies will regulate fintech firms could slow down innovation.

Online marketplace lenders found themselves in the congressional crosshairs Tuesday just as some lawmakers are attempting to provide the industry with sought-after reforms.

The $25 billion-asset company said in a press release Tuesday that BankUnited Small Business Finance is now making loans in Ohio, Washington and Wisconsin.

WASHINGTON — The head of the American Bankers Association on Tuesday defended financial institutions' partnerships with fintech firms but argued that banks top nonbank startups in serving as "trusted custodians" for their customers' funds.

Attempting to impose the fundamental laws of a particular lending universe on another will lead to an eventual collapse of a particular firm or industry segment.

Charles Schwab Bank, BBVA Compass and Mechanics Bank are among the latest investors in a California microfinance firm that specializes in small-business lending.

Offering a new product or considering a merger may boost returns, but the Office of the Comptroller of the Currency says changes in strategy can be risky.

Turmoil in marketplace lending has less to do with loan quality and more to do with how lenders price loans to meet supply and demand.

A centralized platform that validates loan and borrower data and tracks ownership of marketplace loans could prevent fraudulent activities and help investors regain confidence.

Blackmoon, a Russian financial technology startup that analyzes, screens and prices loans issued by others to sell on to investors, is opening a U.S. office to expand in the world's biggest market for non-bank lending.

Medallion Bank in New York has sold nearly $100 million in prime-credit consumer loans, largely consisted of home improvement and recreational vehicle installment loans, to an unnamed buyer.

While fintech companies are urging federal regulators to create a federal charter that would allow them to follow a single national standard instead of a myriad of state rules, such a benefit will almost certainly come with strings attached, including possible compliance with the Community Reinvestment Act.

American Express plans to debut an online loan platform for small-business clients this year, targeting territory occupied by startups like Square and On Deck Capital.

For the second time in six weeks, the online lender Avant is taking steps to reduce the size of its workforce.

Affirm's head of new markets, Brad Selby, says hidden fees and onerous compounding interest terms are trapping too many consumers in deep credit card debt.

Seven weeks into a crisis precipitated by the ouster of the company's longtime CEO, the embattled marketplace lender is trying to convince shareholders that it is turning a corner.

LendingClub Corp. named Scott Sanborn to replace its founder and chief executive officer, who resigned unexpectedly last month, and said it will dismiss 179 employees to cope with the decline in loan volume caused by the turmoil.