• Ryan Sester

COVID19 & The Lender Response - Lending Club Releases Q2 Plan

Updated: Jun 12


Lending Club released Q1 earnings. 4 main points were listed to navigate COVID-19. Keep employees safe, Protect investor returns, support members, and Preserve liquidity. Do you think this strategy will be effective?

Originations

Expected reduction of 90% of loan origination volume in Q2. 30% reduction in staff announced April 2020.


Loan Workouts

11% of loans enrolled in ‘Skip-a-Pay’ program. Skip-a-Pay is a 2-month deferment. Additional, 3-month interest only repayment plan. Long-term workout option being developed.


Collections

Headcount for collections employees increased 30% from Q1 2020. Further adjustments to be made based on volume.


Liquidity & Investor Returns

Expense run rate reduced by $70 mil. From Q4 2019. Temporarily and significantly tightened underwriting standards and increased interest rates. Acquisition of Radius to proceed.


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