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The institutionalization of peer lending is pulling banks into more competitive bidding for loans as originators expand into newer and untested asset classes, such as online real estate loans.
October 7
RealtyMogul.com in Los Angeles said it reached agreements for a total of $250 million in capital, which it will use to offer new products.
The marketplace lender said it obtained the commitments from institutional investors, which it did not identify. RealtyMogul.com will use the investments to offer two new products. One product is a three-to-five-year, floating-rate bridge loan in the 4%-to-6% range. The other product is a fixed-rate program, priced in the 4% range, that follows the standards of the commercial mortgage-backed security market.
"This is the first time an online marketplace is able to offer a competitively priced CMBS loan," Jilliene Helman, chief executive, said in a news release.
RealtyMogul.com is a marketplace lender for real estate that provides mortgages through crowdfunded capital.
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