RPT-Most recent risk so you can on line lenders: “stacking” regarding several financing

San francisco bay area/Nyc Summer 10 (Reuters/IFR) – Of several on the internet lenders failed in order to discover the fresh “stacking” regarding multiple fund of the individuals exactly who sneak owing to its automated underwriting options, lending company managers and you may traders informed Reuters.

The newest practice try proliferating on market – contributed from the LendingClub, OnDeck and you will Excel Markets – because of many lenders’ hurried, algorithmic underwriting, use of “soft” credit issues, and you will patchy reporting of your own resulting loans to credit bureaus, predicated on on line financing and you will credit rating positives. Continue Reading