p2p lending & investing georgia quinn october 2014

8/11/2019 P2P Lending & Investing Georgia Quinn October 2014

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InvestorBorrower OnlinePlatform

What is P2P?


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What is P2P?


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How Does It Work?P2P

Platform

Borrower


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How Does It Work?Investor/Lender

P2PPlatform

Borrower


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How Does It Work?Investor/Lender

P2PPlatform

Bank

Borrower


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How Does It Work?Platform sells note (a

securitycorresponding to a

specific loan or loans)to Investor

Bank originates anddisburses loan to

Borrower; then sellsloan to platform in

exchange forprincipal amount

received from sale ofplatform note

Platform paysInvestor principal andinterest on platformnote (minus servicing

and other fees) asunderlying loan

proceeds arereceived

Borrower authorizesPlatform to transfer

monthly principal andinterest payments to

collection account

Investor/Lender

P2PPlatform

Bank

Borrower

Issues Platform

Notes

AssignsPlatform

Notes

Promissory Note

$

$

$

$

$


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How Does It Work?Platform sells note (a

securitycorresponding to a

specific loan or loans)to Investor

P2P Platformoriginates and

disburses loan toBorrower

Platform paysInvestor principal andinterest on platformnote (minus servicing

and other fees) asunderlying loan

proceeds arereceived

Borrower paysprincipal and interest

to Platform

Investor/Lender

P2PPlatform-Licensed Lender

Borrower

Issues Platform

Notes

Promissory Note

$

$

$

$

$


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Dodd-Frank Risk Retention

Requirements-

ConsumerFinancialProtectionBureau (CFPB)

Lending Laws State and Federal

Overlay Usury laws Use of

bank charters Bank

secrecyregulations

Statelicensing

Debtcollection

ConsumerProtection Laws Truth in

Lending Act Federal

Trade CommissionAct

Regulatory Framework Lending Side


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Regulatory Framework Investor SideSecurities Act of

1933

Investment Company

Act of 1940

Investment AdvisorAct of 1940

Broker-DealerRegulation

State and Federal

overlay


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Registered vs. Unregistered


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P2P Ecosystem

Banks

Investor Screens

Platforms

Data/AnalyticalServices

Other Third PartyService Providers


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Market Snapshot: P2P vs StandardConsumer Loans


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Use of Loan Proceeds


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p2p lending & investing georgia quinn october 2014

Documents