JD2. The loan term doesn't really matter imo. DM1 sell the loans after 30+ days. Assuming they are sold quickly, then the only revenue sought from a sold loan package is via admin and man agent of those loans. I would like to know if DM1 are making a margin when the seller the loan book. Packaged debt is less risky than individual debt (think clo/cdo) so there should be a margin there too. It doesn't look like they are but they should be.
In regards to broker channels, who goes to a broker for a $5-$35k loan? I'd be interesting to see how many loans have come from brokers and whether DM1 has been integrated into broker aggregation platforms or whether it's a separate portal that has to be accessed by the broker.
Besides for the resale value/viability, the credit worthiness of a borrower is of little concern to DM1 as long as there is appetite from funds to buy this debt. How much is being sold to instos/superfunds/funds in comparison to its own direct money fund? Who owns the direct money fund? Does the direct money fund then on sell taking advantage of the margin difference between a single loan and a packaged loan? It seems DM1 doesn't.
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