Global Capital interviewed Manatt’s Brian Korn, co-chair of the firm’s financial services group, for an article examining the state of online lending in 2018.
Korn explained that it is important for investors to do due diligence by checking the quality of the loans being sold.
“I think investors need to do their homework and ensure that they’re not being sold ‘A’ grade loans which may have been jammed with loans from people who are not ‘A’ level borrowers. As long as platforms stay true to their underwriting models, nothing bad should happen, but if you have marginal borrowers who are able to get past some of these barriers, then that’s where you’re going to have problems,” he said.
Read the article here.