Mortgage

Goldman Sachs plans to scale back consumer lending operations

Sign of the times?

Goldman Sachs’ Marcus brand represents the Wall Street’s broker/dealer’s foray into consumer lending, with some home improvement loans thrown in for good measure.

At one point, Marcus toyed with the idea of moving into mortgages

However, Sridahar Natarajan at Bloomberg is reporting Goldman now plans to scale back lending operations at Marcus.

From the report:

The firm’s Marcus unit cut its loan-originations target for next year, according to people with knowledge of the plans. The revision reflects concern about the stage of the credit cycle and changes in market data, the people said, asking not to be identified as the information isn’t public.

Goldman Sachs leaders including new Chief Executive Officer David Solomon have made Marcus a pillar of their plan to boost revenue over the next several years. The unit has grown quickly — lending more than $4 billion in under two years — prompting questions from analysts and investors on how the portfolio will perform in a downturn when more consumers have trouble paying off debt.

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