SoFi’s Loan Losses Pile Up as Even Wealthy Borrowers Default – I Guess People Don’t Respect Internet Transactions

SoFi’s Loan Losses Pile Up as Even Wealthy Borrowers Default – Bloomberg

Social Finance Inc.’s online borrowers are defaulting at higher rates than underwriters for one of its bond deals had expected,…

Losses on the company’s personal loans were high enough to breach key levels known as “triggers” last month on a bond deal issued in 2015 and backed by the loans,…

Other online lenders have had similar trouble with defaults and triggers recently, which has broadly made it more expensive for the startups to fund their businesses. One pioneer in the business, CircleBack Lending Inc., stopped making new loans as growing numbers of its borrowers defaulted. “

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