[jfranz17]

Interesting read http://debanked.com/2016/02/how-the-...place-lending/

"The FDIC says that marketplace lending can encompass unsecured consumer loans, debt consolidation loans, auto loans, purchase financing, education financing, real estate loans, merchant cash advance, medical patient financing, and small business loans"

So the next question is, when does the FDIC wrap its arms around "Marketplace Lending", thus clearing the pathway for (further) regulation?

Likely won't come from the FDIC. They only regulate insured banks, large bank holding companies and non-banks designated as SIFIs, i.e. MetLife. Unless a bank is booking a ton of merchant cash advance/ach loans with poor underwriting or deceptive practices they aren't likely to do anything. The purpose of their letter was to remind banks that if they originate or buy these types of loans, they still need to be responsible for risk management, can't just rely on OnDeck's or Lending Club's black box and operating procedures.

Any blanket regulation will likely come first in the form of legislation from Congress (less likely) or the States (more likely, esp California) that identifies small businesses as consumers.