Lending Club Business Changing
photo credit: pfalaRateLadder wrote up an interesting piece - Big Lending Club News — Quiet Period Underway for Secondary Market - about an email he received from Lending Club about a major change in how they are going to go about their business. Oddly enough he mentions that he got this info via email, but I didn’t receive an email. I am a borrower over at Lending Club, so maybe that is the difference. RateLadde is a lender there. So, I logged into my account and got the following message:
Lending Club has started a process to register, with the appropriate securities authorities, promissory notes that may be offered and sold to lenders through our site in the future. Until we complete the registration process, we will not accept new lender registrations or allow new commitments from existing lenders. We will continue to service all previously funded loans during this period, and lenders will be able to access their accounts, monitor their portfolios, and withdraw available funds without changes.
The borrowing side of our site will remain generally unaffected by this registration process; borrowers can continue to apply for loans and new loans posted after April 7, 2008, will be funded and held only by Lending Club.
Until the registration process is completed, the company will undergo a quiet period and will not be able to respond to press and other inquiries about Lending Club or the registration process during that time.
I wonder, will this be a plus or a minus for borrowers? And would this be considered P2P lending still? After the huge disappointment of Zopa, I am pretty much expecting the worst.
