Before you start exploring Loan Originator, let’s quickly review what a Loan Originator investment is.
A Loan Originator investment is a Claim Right against a loan issued by our loan originator partner. Instead of buying the loan with all the rights and ownership of collateral (if any), you’re buying a right to receive payments from an existing loan.
You buy this claim right from the loan originator by entering into an Assignment Agreement, which governs the terms of your investment.
The Buy-Back Guarantee is an agreement that the loan originator will buy your claim right back if the underlying loan is late by 60 days or more.
The Buy-Back Guarantee depends on the Loan Originator’s financial capability to honor it. We give each loan originator a MyConstant Rating to help you assess the quality of the loan originator and their loans, but as this is just a guide, always use caution and diversify.
You can find out more about Loan Originator investments on our blog