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LendingClub shares tumble on credit score tightening plan

The lender rolled out a new risk model to try to capture longer-term borrower behaviour

LendingClub shares tumble on credit score tightening plan

LendingClub on Tuesday reported earnings in line with Wall Street expectations, but a plan to restrict lending to all but the most creditworthy borrowers send the stock down 16% in Wednesday morning trading, MarketWatch reports.

“We estimate this cuts originations - and revenue - roughly 5%, and adjust our estimates accordingly,” wrote Susquehanna International Group analysts, who have a positive rating and a $9 price target on the company.

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