Marketplace lending

If the decision by the New York appeals court is upheld, banks and other lenders could have trouble finding buyers for credit card and other consumer loans.

One of the biggest U.S. mortgage lenders is looking to disrupt the disruptors in the market for peer-to-peer loans.

The federal government's first broad inquiry into the fast-growing peer-to-peer loan industry raises several important questions, including whether banks will lobby for a clampdown on these lightly regulated competitors.

Citigroup Inc. is preparing to bundle more than $300 million of loans originated through Prosper Marketplace Inc. into securities as Wall Street helps fuel the online-lending industry, people familiar with the deal said.

Marlette Funding is set to announce Friday that it has raised $75 million from investors including a fund affiliated with the Invus Group, a private-equity firm, and Navient Corp. The money will mainly be used to keep a portion of the loans Marlette originates through its website, MyBestEgg.com.

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Upstart, a marketplace lender founded by ex-Google employees, has more than doubled its funding after receiving an investment from a group led by activist hedge-fund investor Dan Loeb. The company plans to use the funds to improve its underwriting analytics.

The Treasury Department launched an inquiry into the marketplace lending industry on Thursday, seeking information on its business models, customers and whether such firms should be forced to keep some "skin in the game."

From Beijing to Paris to Dublin, peer-to-peer lending is blossoming. A quick look at the industry in various parts of the globe.

ZestFinance in Los Angeles has introduced a loan product for subprime borrowers whose credit scores nearly qualify as prime.