Five originators on the Mintos peer-to-peer lending marketplace have been marked as defaulted following a shift to a new risk scoring model.
The pan-European platform has launched a new risk score for each originator that funds loans through its platform ranging from 10 for a low-risk level to one for high.
The risk score will be calculated based on an originator’s loanbook quality and performance, how well it recoups bad debts, how it operates buybacks and its co-operation with Mintos.
It replaces Mintos ratings that provided a score based on the financial and operational stability of its originators.
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The platform has revealed that as a result of the new score, five previously suspended lending companies are now becoming defaulted.
These are Capital Service, Cashwagon, Finko Ukraine, Getbucks Zambia and ExpressCredit Zambia.
Lending companies can be defaulted if the estimated cashflows are not sufficient to cover buyback guarantee or if it isn’t passing borrower repayments to Mintos, the platform said.
They can also be defaulted if they are declared bankrupt or in the process of insolvency and if a restructuring solution has not been achieved 180 days after being suspended by Mintos.
The change has also altered the risk score for some originators on the platform and removed the ratings for others that are inactive.
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