Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
735,718-296
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.94%0.02
InvestmentsMortgage

Will sexual harassment claims cost SoFi its bank charter?

Odds slim to start

Shortly before the sexual harassment claims at SoFi overtook news headlines, the company filed a bank charter application in Utah.

The controversy surrounding SoFi right now, though, only increases the likelihood that the company will be denied. The odds of being approved were already slim even before the sexual harassment claims came to light.

SoFi filed the application on June 6 under the name of a Salt Lake City, Utah-based subsidiary called SoFi Bank.

According to an article in the Financial Times by Ben McLannahan, a close adviser and former chairman of the Securities and Exchange Commission said: “SoFi’s application to become a bank has almost no chance of approval in the wake of a sex scandal that forced out its chief executive.”

From the article:

The departure is likely to make the FDIC look askance at SoFi’s efforts to vault itself into the mainstream banking system, said another person familiar with the process. “The FDIC won’t act in a vacuum,” the person said. “For most regulators management is the single most important issue.”

Currently, SoFi focuses on student loans, mortgages and personal loans, along with a handful of other offerings.

One of the newest ventures for SoFi was the bank application. The application came on the heels of SoFi announcing back in February of this year that it acquired Zenbanx, a fintech mobile bank, marking its initial steps into the banking world.

However, with the company still tangled up in a sexual harassment scandal, SoFi’s chances of getting approved are getting pretty low. They were low already since there hasn’t been any new industrial loan company charters approved in about a decade.

The article in the Financial Times noted that sixteen other ILCs are licensed to operate in Utah, including one owned by carmaker BMW.

For more from the Financial Times, click here or below.

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please