The US Treasury released a White Paper on the $1T US online marketplace lending market.
The report released in a pivotal week comes amid several macro economic factors such as:
Rising interest rates and higher default rates.
Recent P2P public market entrants and diminishing loan interests from retail investors.
P2P market maturity and resulting securitization.
Jobs Act Title III going live in days (May 16) for main street Americans and the flurry of niche platforms that are on their way.
Recent non disclosure and malpractice (trust related) events at Lending Club.
The White Paper outlined the following recommendations:
- More transparent underwriting
- Better fair lending practices for SMBs
- Increased cybersecurity monitoring
- Better KYC and AML ongoing monitoring