Morgan Stanley Makes $100-Million Move on Fintech Startup Affirm Inc.

Startup lender Affirm Inc. is adding debt from Morgan Stanley as it seeks to increase its loans for tickets, trips and other big online purchases as an alternative to paying with credit cards.

The Wall Street titan is furnishing a $100 million credit line for Affirm, the four-year-old San Francisco company led by PayPal co-founder Max Levchin, which was valued at $800 million in its most recent fundraising.

It is the first time Morgan Stanley has backed the lender, which has raised cash from venture-capital investors and debt from investment bank Jefferies and others.

http://www.wsj.com/articles/morgan-stanley-makes-100-million-move-on-fintech-startup-affirm-inc-1476352982

Online Lender Prosper in Talks on $5 Billion Loan-Buying Deal

Online lender Prosper Marketplace Inc. is in advanced talks with a group of investment firms to sell them roughly $5 billion worth of loans over the next two years, people familiar with the matter said.

The loans would be bought at face value, but the firms are also in discussions to receive equity warrants in Prosper as they make the purchases, the people added. The potential buyers are also talking to banks about borrowing money to support their loan purchases, and a deal could wrap up in the coming weeks, they said.

http://www.wsj.com/articles/online-lender-prosper-in-talks-on-5-billion-loan-buying-deal-1470322065?mg=id-wsj

OnDeck, Kabbage and CAN Capital form Innovative Lending Platform Association

Similar to the Market Place Lending Association formed by LendingClub, Prosper, and Funding Circle (http://www.marketplacelendingassociation.org/), the small business lending plat forms have also organized an association called the Innovative Lending Platform Association, which will focus on advancing small business online lending education, advocacy, and best practices.

http://www.pymnts.com/news/b2b-payments/2016/ondeck-kabbage-can-capital-lending-platform-association/

http://www.prnewswire.com/news-releases/nations-top-online-small-business-lending-platforms-organize-to-advance-industry-standards-300263354.html

http://bankinnovation.net/2016/05/yet-another-association-for-marketplace-lending-launches/

LendingClub, Competitors Face Risks From Lawsuits: Moody’s

A proposed class action against LendingClub Corporation is credit negative for asset-backed securities (ABS) backed by consumer loans originated through online platforms using a partner bank origination model, Moody’s Investors Service says in a new report. The lawsuit confirms that the owners of such loans face legal challenges over whether the loans are exempt from state usury limits.

https://www.moodys.com/research/Moodys-Lending-Club-class-action-case-is-credit-negative-for–PR_348477?WT.mc_id=AM~RmluYW56ZW4ubmV0X1JTQl9SYXRpbmdzX05ld3NfTm9fVHJhbnNsYXRpb25z~20160506_PR_348477

http://www.bloomberg.com/news/articles/2016-05-06/moody-s-warns-of-lawsuit-s-risks-to-lendingclub-online-lenders