New York

250 West 55th Street, New York, NY 10019

14 Nov 2018 

25+ Speakers 

Leading figures in the  Marketplace Lending Securitisation

200 Seats

Register here

Agenda

  • REGISTRATION & LIGHT LUNCH

  • OPENING REMARKS: John Owen Waller, Managing Director, SCI; Henry Morriello, Partner, Head of Structured Finance & Derivatives, Arnold & Porter

  • APPLYING BLOCKCHAIN IN SECURITISATION

    Discussions will focus on:

    Digital Currencies and Blockchain

    Incubation and the role of regulation  

    The power and promise of Smart Contracts  

    How can securitization benefit from Blockchain?

    Future for Blockchain-based ABS products. What is next for the ABS market in terms of Distributed Ledger Technology (DLT) implementation? How is DLT already being used at some of the largest financial institutions in the world?  

    Potential applications to the ABS Market in the areas of artificial intelligence, distributed ledger technology, cryptocurrencies and cybersecurity. Roadmaps, hurdles and strategies for adopting this technology.

     

    Panel includes:

    co-chaired by Gary Miller - Intain Fintech & Lawton Camp - Arnold & Porter

    Patrick Dietz - Global Debt Registry

    Dan Long - ARTBLX

    Steven Ehrlich - Wall Street Blockchain Alliance 

    Matt Lisle - DrawBridge Lending, LLC

     

     

  • NETWORKING BREAK

  • INVESTOR PERSPECTIVE

    Discussion will focus on:

    What motivates marketplace lending investors and what are their key requirements?

    The current opportunity offered by marketplace lending ABS for investors includes assets with varying credit quality and attractive yields. How do investors get comfortable with the asset class?

    How does the limited performance history of the asset class impact investor decisions?

    How do investors evaluate risks associated with: platform and technology; borrowers; regulations and other variables?

    Where do investors see relative value in the asset class?

     

    Panel includes:

    Larry Chiavaro - 1st Associates 

    Ram Ahuwalia - PeerIQ

    Kyle Asher - Monroe Capital LLC

    Manish Kapoor - West Wheelock Capital

     

  • NETWORKING BREAK

  • LEGAL AND REGULATORY CONSIDERATIONS

    Discussions will focus on:

    Which regulatory challenges remain for the marketplace lending industry to overcome (true lender status, Madden vs Midland Funding etc.)?

    “Protecting Consumers’ Access to Credit Act of 2017” and “Modernizing Credit Opportunities Act” impact on industry?

    Targeted banking reform bills in the House, including impact on FinTech and other financial services sectors

    Which regulatory challenges remain for the marketplace lending industry to overcome? 

    OCC fintech charter banks and state regulatory resistance

    Which authority regulates marketplace lenders and how does this affect the industry’s progress (the SEC, OCC, CFPB)?

     

    Panel includes:

    co-chaired by Henry Morriello - Arnold & Porter & Tim Saunders - Goldman Sachs  ​​​​

    Brian Victor - SoFi

    Tejal Wadhwani - Goldman Sachs

    Charley Landgraf - Arnold & Porter

    Mark Koontz - Credit Suisse

     

     

  • NETWORKING BREAK

  • STRUCTURING CONSIDERATIONS

    Discussions will focus on:

    How has the securitization of marketplace loans developed since the early transactions? Have marketplace ABS structures evolved and improved over time?

    How has the implementation of risk retention rules affected structuring and pricing?

    Have lessons been learned from early experiences such as building in greater levels of credit enhancement?

    Structuring considerations related to use of single-class certificate pass-through structures

     

    Panel includes:

    co-chaired by Henry Morriello - Arnold & Porter & Tim Saunders - Goldman Sachs  ​​​​

    Chuck Weilamann - DBRS

    Perry Rahbar - dv01

    Stephanie T Yeh - Credit Suisse

    Steven Moffitt - Goldman Sachs

    Nat Hoopes - Marketplace Lending Association

    Seth Perlman -  Morgan Stanley

     

     

     

  • KEYNOTE SESSION

    Senator Christopher J. Dodd, Senior Counsel, Legislative and Public Policy  

     

  • COCKTAILS & NETWORKING

  • CLOSE

Registration

Early bird delegate registration is $873

Start the registration process below:


Speakers

Speaker 1

Steve is Chief Operating Officer at the Wall Street Blockchain Alliance, a global 501(c)(6) non-profit trade association that guides the comprehensive adoption of blockchain technology and cryptoassets across global markets.

Previously, he was Vice President at Citi FinTech, where he drove strategic and new business development initiatives for Citigroup’s Global Retail and Consumer Bank business. Prior to joining Citibank, Steve was Lead Associate for Emerging Technologies at Spitzberg Partners, a boutique corporate advisory firm headquartered in NYC that advises technology and financial services firms on innovation goals and strategies to navigate political and regulatory hurdles worldwide.  Spitzberg Partners specializes in blockchain and cryptoasset technologies, with a strong emphasis on helping clients form investment strategies and introduce these technologies to their business operations.

Prior to joining Spitzberg Partners, Steve was a Senior Intelligence Analyst at Booz Allen Hamilton supporting the U.S. Department of Defense. In this role, he led a team of all-source intelligence analysts that provided intelligence support to U.S. Department of Defense officials and combatant commands on emerging security threats in Europe, Africa, the Middle East, East/Southeast Asia, and Latin America.

Steve has a B.S. in Business Administration from the Tepper School of Business at Carnegie Mellon University and a M.A. in International Affairs from Columbia University's School of International and Public Affairs. Additionally, he is a Certified Information Privacy Professional (United States, Canada, and the European Union) and a Certified Information Privacy Technologist at the International Association of Privacy Professionals (IAPP).

Steve is a sought-after speaker, commentator, and author on emerging technological issues, with a focus on digital banking and blockchain technology.  He is a regular contributor at Forbes and has been featured on numerous outlets, including Nasdaq, Cheddar, Yahoo, Tearsheet, American Banker, International Business Times, and the New York Business Journal.

Steve Ehrlich

 Chief Operating Officer

 Wall Street Blockchain Alliance

Speaker 1

Manish is a Managing Principal at West Wheelock Capital and has 20 years of experience in originating and investing across asset classes. He is fluent in investing and sourcing structured credit, ABS and derivatives opportunities. He has also extensively advised on the impact of regulations on the origination and trading of these products. He has originated and invested in over $20 billion of transactions.

Manish served a two-year appointment as a senior capital markets advisor at the Securities & Exchange Commission from 2015 to 2017. He was mandated to socialise new issues and trends across capital markets.

Previously, Manish was a lead creditor negotiator at the Lehman Brothers Bankruptcy Estate.  He was senior member of group, appointed to monetize and negotiate the liquidation of the largest derivative portfolios across asset classes at the Estate. He worked on the “big-bank team” which developed and implemented a uniform settlement proposal for $20 billion of derivative claims. Manish was the lead negotiator for portfolios with a market value of $2.5 billion.

Manish was the head of Sourcing & Structuring in the Strategic Transactions Group at Lehman Brothers from 2006 to 2008. His mandate was to utilise Lehman’s balance sheet to invest in principal cross-asset transactions in multiple jurisdictions.

Prior to joining Lehman, he was a Vice President at Bear Stearns from 1999 to 2006. Prior to joining Bear Stearns, Manish worked in the new products Asset-Backed origination group at Lehman Brothers from 1997 to 1999 in New York.

Manish holds a B.A. in Economics from St. Lawrence University and is a Chartered Financial Analyst (CFA).

Manish Kapoor

 Managing Principle

 West Wheelock Capital

A thriving network awaits.

SCI's events are set up for effective education and networking. Here's what delegates attending SCI's previous events said:

  • The seminar was excellent...

    I came away thinking that "it's NOT just another regulatory arbitrage fad" ... but that the insights shown in properly structuring solutions to properly recapitalize banks after the credit crunch got me thinking of mechanisms that could be critical in building a new, shareholder value-creating, global banking industry of tomorrow. All speakers were knowledgeable and approachable. Location and time, starting at 12 noon, suited me perfectly! 

  • Also interested in esoteric credit strategies

    "Great gathering of banks, arrangers and investors. Speakers were very forthcoming. I am interested in esoteric credit strategies in general."

  • I'd attend this event every year.

    "...it was very helpful to meet some of the other key players in this space and hear first hand how they navigated some of the difficulties in completing transactions."

  • It was a well thoughtout event...

    ...that covers pretty much the relevant aspects of these transactions. I also like the networking sessions...to be connected with other investors, issuers and others.


MPL COVERAGE IN SCI:

 

12 September 2018

Madden resolution urged Madden resolution urged 

US marketplace lending firms should be freed from restraints around “true lender” status that have arisen due to regulatory developments, such as the Madden vs Midland case. This is according to a recent US Treasury report, which also suggests improvements to servicing standards and borrower communication in the federal student loan sector.

The US Treasury highlights the growing role of fintech and nonbank firms in lending in the US, with 3,300 new fintech firms founded between 2010 and 2017. 40% of these are focused on banking and capital markets and lending from these firms now makes up more than 36% of all US personal loans.

The report highlights the importance of marketplace lending in expanding access to credit for consumers and businesses in the US and, in line with this, recommends eliminating constraints resulting from various court cases, such as Madden vs Midland.

It adds that Congress should codify the “valid when made” doctrine to preserve the longstanding ability of banks and other financial institutions, including marketplace lenders, to buy and sell validly made loans without coming into conflict with state interest-rate limits.

Vincent Basulto, partner at Richards Kibbe and Orbe, comments: “It’s helpful to have the support of the government behind the sector and it provides further momentum behind a resolution for the Madden vs Midland issue. It was hoped originally that it would resolve itself naturally over time, but it has since become ingrained in law.

“People are now coming to the conclusion”, he continues, “that there needs to be a cohesive push, including from Congress, to get the issue resolved in a collaborative fashion, on a national level. It still remains the major regulatory issue in the sector and the status quo doesn’t benefit lenders or consumers. There is generally a feeling in the report that there needs to be some degree of harmonisation and a streamlined approach to regulating the sector.”

In the realm of mortgage lending, the report notes that traditional lenders have - since the financial crisis – ceded market share to non-bank lenders, which now account for 50% of new mortgage originations. Both depository and nondepository lenders are now moving toward a digital front-end, either through a proprietary platform or commercially available products.

Additionally, the use of online platforms to submit mortgage applications has increased from 28% in 2016, to 43% in 2017. Few lenders, however, currently have the capability to complete the digital front-end, but instead use a digital application to trigger referral to a loan officer to continue the process in a paper-based way.

Capabilities to support a digital back-end are even less developed in the sector, but it remains integral in offering an end-to-end digital mortgage product, although this is hampered by disparate rules and non-uniform recognition of electronic and remote online notarisations.

The development of digital mortgages could be supported by wider use of electronic promissory notes (eNotes) due to the advantages for the mortgage industry and borrowers in providing convenience, quality control efficiencies and faster origination timelines. eNotes are also, the report states, more readily transferred between holders as they are bought and sold in the secondary market, cost less to store and transmit than paper and offer greater protection against unauthorised tampering, alteration or loss.

The report recommends that Ginnie Mae accepts eNotes and supports the measures outlined in Ginnie Mae’s 2020 road map to develop digital abilities. Additionally, the report suggests that states yet to authorise electronic and remote online notarisation, pursue legislation to explicitly permit the application of this technology and the interstate recognition of remotely notarised documents.

In the area of student lending and servicing in the US, the report highlights that the federal student loan programme represents more than 90% of outstanding student loan volume and is managed by an extensive network of nonbanks for servicing and debt collections. The programme is very complex due to a variety of loan types, repayment plans and product features that are difficult to navigate and increases the difficulty and cost of servicing.

As a result, the report recommends that the US Department of Education establishes and publishes minimum effective servicing standards, to provide clear guidelines for servicing and help set expectations about how the servicing of federal loans is regulated. It also backs greater use of technology in communications with borrowers, enhanced portfolio performance monitoring and management and greater institutional accountability for schools participating in the federal financial aid programmes.

In the area of communication and servicing Basulto also sees room for improvement and that the federal programmes can learn from online lenders. “Federal student lenders”, he says, “could certainly heed the example of the private loan online firms particularly in terms of harnessing digital communication. Their servicing capabilities also are generally pretty solid.”

Basulto adds that concern around servicing is being seen across the board: “What I would say however is that as the credit cycle is expected to turn, scrutiny of the quality and capabilities of servicers is increasing from investors.

“They want reassurances”, he continues, “that servicers will be able to handle a potential uptick in delinquencies, should the economic situation turn. This is being seen across asset classes and there are particularly concerns in subprime auto loans and unsecured consumer lending, including marketplace lending.”

In general, when it comes to the ability of marketplace loans to survive and perform through a downturn, Basulto is quietly confident about marketplace loan securitisations. He says: “In terms of MPL ABS I think that the deals are generally well supported in terms of credit enhancement to maintain cashflows for the foreseeable future. Equally, rating agencies have certainly been pretty conservative in their ratings.”

The report also highlights the growing demand in the US for short-term, small-dollar loans, but says that lenders have been constrained by unnecessary regulatory guidance at a federal level. As such, the US Treasury recommends that the CFPB rescind its Payday Rule, which applies to nonbank short-term, small-dollar lenders, as states already maintain the necessary regulatory authorities and the rule would further restrict consumer access to credit.

Alongside the Treasury report, The Office of the Comptroller of the Currency (OCC) announced that it will begin accepting applications for national bank charters from non-depository fintech companies engaged in banking. The OCC states that fintech firms that receive special purpose national bank charters will be supervised like similarly situated national banks, to include capital, liquidity, and financial inclusion commitments as appropriate.

Basulto has mixed views on the OCC announcement, although he is clear about the general reception of the decision. He comments: “This was viewed as a really positive sign for the sector and received enthusiastically from almost all corners. However, it could be seen as something of a symbolic gesture because it is unlikely that more than a handful of firms will even be willing at this point to apply and I wouldn’t be surprised if not even one new firm has applied and secured a charter by a year from now.”

He adds: “At best it is only going to be the largest, most established platforms in the country that will consider applying. Less established lenders just won’t be able to meet the criteria and it therefore has somewhat limited applicability.”

Additionally, Basulto suggests that firms may not be successful or may not even bother to apply for a bank charter because the OCC’s requirements - including management expertise, liquidity, capital and financial inclusion – are things many fintech firms will not have and it raises the question about whether the OCC is considering what fintech firms are really capable of. He adds that the announcement does still indicate, to an extent, that the OCC is supporting the development of new types of financial firms.

A bigger concern may be the level of opposition at a state level that fintech firms may face. According to Basulto, the last time the OCC charter issue was raised it was met with “fierce criticism and was challenged from a number of states”, which fear losing control over the companies they regulate.

He concludes: “As such it is highly likely that there will be further legal challenges although the OCC has tried to set out a fairly solid statutory basis for the charter - they recognise the challenge to the states and it seems very likely that there will be litigation to help settle this.”