Nothing they have disclosed has caused me to stop investing in their loans. In fact you can get some nice high grade loans on their secondary market from people trying to unload their portfolio at a 3-5% discount to face value.

As long as they don't have any debt on the books you are pretty safe. If they did have debt there might be some question about order of payment to creditors.

Default rates have just hit their lowest point in eight years:

https://www.federalreserve.gov/releases/chargeoff/delallsa.h...

From this halcyon point, there's more downside risk than upside going forward. Unless the cyclical nature of debt defaults suddenly stopped after centuries.

The increased scrutiny could reveal much worse, who knows?

That's my logic, I bought stock, and continue to put money into the loans.

(I have zero affiliation with Lending Club, just like the returns.)