Treasury Looking Into Online ‘Marketplace Lending’

With nonbank online “marketplace lending” growing dramatically — originating $12 billion in new loans in 2014, mostly to consumers but also to businesses — the Treasury Department yesterday launched an inquiry into the sector.

Treasury sought information on unique policy concerns raised by marketplace lending, the use and protection of customer data by lenders, customization of products to particular customer categories, credit access for underserved markets, customer acquisition, underwriting, servicing, lender relationships to insured depository institutions, “peer-to-peer” lending platforms, risks to consumers and investors and the secondary market.

Comments are due 45 days after the request for information is published in the Federal Register. Read more.