No Due Diligence Yet in Online Lending

San Bernardino Shooter Took out Loan Prior to Terror Attack
– The Wall Street Journal

The Wall Street Journal interviewed Manatt's Brian Korn, a partner in the firm's Capital Markets practice, for an article on the loan taken out by one of the two shooters in the San Bernardino attacks weeks before the shooting.

The Wall Street Journal reports that one of the shooters took out a loan from online lending platform Prosper Marketplace weeks before the shooting. There are no signs that Prosper is suspected of any wrongdoing or negligence in its handling of the situation, nor is it clear whether its role providing a loan to the shooter could raise the intensity of questions about how the industry is regulated.

"There's no due diligence that's done into how these loans are actually going to be used," said Korn.

Read the article here