Lending Club Crashes Near Record Lows After Slashing Guidance
Despite record high stocks, record high consumer confidence, and 'full' employment, LendingClub is struggling to originate high-enough quality loans - crashing almost 20% after slashing its Q4 outlook.
CEO Scott Sanborn on LendingClub’s conference call pointed to a new credit model that represents "a tightening with an overall shift to higher-quality grades and higher quality approvals within grades," and said Equifax’s significant data breach "has put consumers on edge."