CommonBond cannot provide money by itself particularly a lender, the new loans is originated by some other bank

News release out of CommonBond To have Business

On the internet college student bank CommonBond, hence started in 2012 as a way for graduates of your College from Pennsylvania’s organization school to re-finance its student loans, will actually sell as much as $100 mil value of student education loans property so you can buyers because the bonds, having a probably stamp out of capital-values recognition of Moody’s, new ratings department.

Tapping people to pay for money is common in other, old elements of the fresh commerical and personal bank loan community (credit card fund, mortgage loans, and you will old-fashioned beginner debt is consistently packed and offered to buyers), however, here just have started three areas loan providers with properly securitized their money by themselves. Markets lenders have fun with various other criteria than just traditional banking institutions to provide currency (because of a mediator) to individuals and you may businessess then promote those people funds to help you traders.

SoFi, hence primarily gives so you’re able to people and students but has exploded out to the mortgage loans, and you may OnDeck, gives so you’re able to enterprises, did securitziations. Continue Reading