Money360, Inc. (money360.com) announced today a nationwide expansion of the first peer-to-peer (P2P) real estate lending marketplace. More than $500 million is currently available to lend through registered private lenders across the nation seeking to make commercial and residential loans.
In the run up to the GFC, banks had to package subprime mortgages into ARMS, CDOs and other 3- and 4- letter alphabet soups and sell them to others in order to get rid of toxic assets from their books. On the other hand, Money360 presumably exits the scene
after brokering the deal and collecting its commission. Great business model. Doubt if Money360 will ever hit volumes big enough to threaten the next GFC. So, no systemic threat either.
© Finextra Research 2013