P2P lending, also known as marketplace lending, is revolutionizing commercial and residential mortgage loans by offering another funding options to mortgage professionals
, according to Money360 President and Co-Founder Dan Vetter.
“In general, the Internet really is making something possible that was never possible. It allows borrowers and lenders to connect directly,” Vetter said.
In marketplace lending, the middleman is cut out of the process. Through platforms such as Money360
, investors connect directly with the borrowers looking for money. Investors range from wealthy individuals to institutions to banks.
However, P2P lending also provides mortgage brokers another resource for getting financing, according to Vetter.
Click to continuing read about how marketplace lending can be another valuable tool in your toolbox.
Although lending standards were not strict enough before the housing bust, they are now too tight. Even if a borrower “checks all the boxes,” nothing guarantees they’ll be approved for a loan and possible clients are cut off. This lending environment has left banks reducing their mortgage production, leaving room for specialized mortgage companies to step in and fill the void, like Peer-to-peer (P2P) lenders.