possibly mess up their ratings, though such fears don’t seem to have much basis in reality as far as I can tell
Well, my understanding is the rating agencies accepting UPST ratings is critical, otherwise the banks will not be able to create MBS or ABS. Right now, rating agencies know about FICO ratings, but not about UPST rating methodology. I think the fear is warranted.
Just to keep an eye I have sold few $40 puts.