Department of Treasury to Release Report on Marketplace Lending
The US Department of Treasury has announced its intent to release a white paper next week pertaining to their review of the marketplace lending industry (orginally labeled peer to peer lending). The document is expected to encapsulate the many comment letters submitted to Treasury following their initial “Request for Information” (RFI) in July of 2015. Treasury followed up the request with a gathering of over 80 industry participants in August of 2015 that included an “impromptu” visit by Secretary of the Treasury Jack Lew who gave a brief “supportive” speech. The white paper will provide an overview of what the Treasury Department heard in response to the RFI along with research and recommendations for the online lending industry.
A treasury spokesperson stated: “We look forward to sharing our research and recommendations with the industry and the public and remaining engaged on innovation in consumer and small business lending.”
The white paper comes at an interesting intersection for the marketplace lending industry. Recently the stumbling economy has slowed sector growth as multiple reports, including recent Q1 results from OnDeck, indicate a more challenging environment for online lenders. Also there are rumblings about new regulations in the making. Additional rules may engender an environment that makes non-bank lending a more costly proposition.