Moody's has published a comment in thier Credit Outlook that the announcement by the U.S. OCC that it would begin accepting special-purpose bank charter applications from fintech companies is credit positive for marketplace loan ABS.

According to Moody's:

• If marketplace lenders obtained these charters, lenders could stop relying on partner banks to fund their loans at origination, a business model that creates legal risk
• Although the OCC said it would consider applications by fintech companies for special-purpose national bank charters, it is unclear whether marketplace lenders will seek the charters given their accompanying regulatory requirements, or whether the OCC would approve them
• Operating through partner banks or via state licenses carries costs and risks for lenders, but operating under a bank charter could be more expensive and restrictive

Read related news Equipment Finance Advisor news strory: OCC to Consider Fintech Charter Applications, Seeks Comment