Peer-to-Peer Lending Braces for Change
Richard Morris was quoted in Institutional Investor about potential regulation in the marketplace lending industry, in which companies offers loans – often unsecured and financed by investors – to individuals and small businesses. The U.S. Treasury Department recently released a white paper detailing “opportunities and challenges” in online marketplace lending, and the Consumer Financial Protection Bureau might view the largest marketplace lenders as banks for its own regulatory purposes starting in 2017. “What will ultimately happen is, it will come down to standardized documentation,” Morris said. “At some point there’s going to be a template for these types of loans.” Morris added that the outcome might resemble the development of template documentation for residential mortgages, but tailored for consumer finance.