SFIG Issues First Marketplace Lending Best Practices Report

WASHINGTON, Dec. 1, 2016 /PRNewswire/ -- The Structured Finance Industry Group, Inc. ("SFIG") released the First Edition in a series of papers aimed at supporting the responsible growth of securitization in the marketplace lending sector. These papers, termed "Green Papers," are a product of SFIG's Marketplace Lending Committee Best Practices Initiative. The Best Practices Initiative was launched in February 2016, and seeks to identify a framework of market standards and recommended best practices through an open discussion among a broad cross-section of market participants.

The Green Papers are preliminary documents released with the aim of stimulating further debate and discussion.  SFIG is a member led industry organization that represents all sectors of the securitization industry.  Since 2014, the group has successfully led the RMBS 3.0 initiative which relies on Green Papers to lead the industry to collectively solve issues in a way that does not require regulatory mandate. 

Richard Johns, SFIG's Executive Director said, "Marketplace Lending has grown tremendously in the past few years and securitization plays a central role in the success of this innovation.  Our membership has been closely involved in this sector for a number of years and feels that our Green Paper release is the best structure to help the industry toward responsible, innovative growth that provides clear best practices to all market participants.  Through the RMBS 3.0 initiative and efforts on Regulation AB, we have seen that collectively driving an industry viewpoint reflective of all stakeholders enables efficient capital flows and effective regulatory dialogue.  I would like to thank the members of the Committee and our board for its leadership on this important effort."

The involvement by membership in SFIG's Marketplace Lending Committee and the best practices effort is broad. Each working group differs in size, and SFIG's Marketplace Lending Committee currently includes 250 individuals, representing more than 70 SFIG member institutions. The initiative has established the following five work streams related to marketplace lending:

  • Disclosure & Reporting;
  • Representations & Warranties;
  • Regulatory;
  • Operational Considerations; and
  • Enforcement.

This Green Paper is the first work product to come out of the Disclosure & Reporting work stream. The goal of this work stream is to publish recommended best practices for data disclosure of underlying asset pool collateral. The three components of this scope of work are:

1) Loan level data disclosure
2) Pool level data disclosure
3) Ongoing performance reporting

This First Edition Green Paper includes recommendations for the first of these components, loan level data disclosure.  This recommended disclosure package is specific to securitizations of unsecured consumer loans originated by marketplace lenders.  Future editions of Green Papers will address the other components listed above.

About Structured Finance Industry Group, Inc.
Structured Finance Industry Group, Inc. ("SFIG") is a member-based, trade industry group focused on improving and strengthening the broader structured finance and securitization market. SFIG provides an inclusive network for securitization professionals to collaborate and, as industry leaders, drive necessary changes, be an advocate for the securitization community, share best practices and innovative ideas, and educate industry members through conferences and other programs. Members of SFIG represent all sectors of the securitization market including issuers, investors, financial intermediaries, law firms, accounting firms, technology firms, rating agencies, servicers, and trustees.  Further information can be found at www.sfindustry.org

SOURCE Structured Finance Industry Group, Inc.

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