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April 15, 2016
excerpt, SNL Financial Extra (April 15, 2016):
Others were not as confident in digital lenders' ability to avoid regulatory burdens. It is very important that state agencies recognize the bank as the "true lender" of the loan for the business model to work, said Scott Cammarn, a partner with Cadwalader Wickersham & Taft LLP. LendingClub's change to its partnership with WebBank means the bank's compensation is tied to the loan's performance, but the bank does not retain credit risk. "It's a spectrum, and where on that spectrum is enough is hard to know," he said.