As of next week, we will be introducing a new loan contract format which will reflect a new origination source for RateSetter Loans. This will mean that when you are matched with a Borrower, you could be matched with one of two versions of the contract.
Whilst this may sound like a significant development, we wanted to post a blog just to reassure you that nothing fundamentally is changing in how we manage contracts or borrowers, or indeed your rights within the contract.
As we have stated before, our key role is providing creditworthy Borrowers into the RateSetter markets, and assessing the risk levels of all Borrowers to ensure the Provision Fund is compensated adequately. This remains absolutely our priority and these changes are an extension of our desire to broaden the distribution of RateSetter Loans and match the ever increasing demand from Lenders. The contract differences are minor and refer to the process of how we originate the loan, in this case it is being “assigned” to be matched by RateSetter from a third party introducer.
The most important thing that we wanted to clarify is that the key principles of RateSetter still apply: our credit process remains stringent and solely our responsibility, the Fund protects our Lenders from bad debt, and our debt management processes are still clear and robust. All of these things are demonstrated in the data that you can see under the Provision Fund tab in the RateSetter Info area of the Member site.
As we develop our loans marketing channels, it is possible that we will introduce new versions of our loan contract to allow us to deliver new relationships for origination. But the principles above are non-negotiable as we agree new introducer relationships, and the protection of Lenders remains our number one priority.