LendingClub Models Misfire as Loan Write-Offs Top Forecasts

Updated on
  • Actual write-offs were higher-than-expected in some cases
  • Lender says loan performance `nothing out of the ordinary'

How Lending Club Changed After Rate Hikes

LendingClub Corp. won over debt investors with algorithms that quickly assess borrowers’ creditworthiness, making it easy for banks, hedge funds and others to snap up billions of dollars of consumer loans arranged through its online platform. Those algorithms still have some kinks.

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