In the second quarter alone Sanborn said LendingClub, which has been at it for around 11 years, grew loan volume by 31% year-over-year.
"The money supply is not growing; loans are not increasing.
"Most of these banks have already hit the limits to their lending, so the only way to grow loans is to acquire more deposits, which may lead to cutthroat price competition on deposits".
"As the inspector general suggests, we are increasing our staff and modernizing our systems to meet FHA's growing loan volume," HUD spokesman Neill Coleman said in response.
Politicians have been promising to fix the growing loan crisis for years, but outstanding student debt has now mushroomed to $1.4 trillion.
But, after scaling back its original high street presence, it failed to grow loan numbers as expected and, in 2013 and 2014, it reported operating losses of more than £2.1m.
Marketplace consumer lending (Prosper, Lending Club, SoFi), SMB lending (Funding Circle, Kabbage, OnDeck) and merchant installment plans (Klarna, Affirm, Financeit) have all generated traction by rapidly growing loan books and raising large funding rounds.
Along with FinTech industry guru Ron Suber, Prosper's president, Kimball is intent on growing loan volumes, offering lower average rates compared to traditional lenders, delivering higher returns to investors and returning Prosper to profitability.
Relative to a U.S. bank, for instance, we're attracted to it because it has growing loans--5% this year and we expect that to improve going into 2018.
"We grew managed loans and revenues within our U.S. card segment and maintained strong credit quality.
