Marketplace Lenders Win Over Wall Street Lobbyist

The line between marketplace lending and Wall Street just got thinner with the head of a major Wall Street bank trade group switching camps.

Nat Hoopes, VP of public policy and government relations at the Financial Services Forum will head the Marketplace Lending Association.

Formed in April this year, the Marketplace Lending Association was formed by Prosper Loans, Funding Circle and Lending Club to “promote a more transparent, efficient, and customer-friendly financial system by supporting the responsible growth of marketplace lending.”

A requirement to join the association is to be matching 75% of loans, by dollar, with commitments for funding from investors before the loans are issued. The group therefore probably seeks permanent acceptance of the ability for investors to buy loans or securities backed by loans in online marketplaces.

Hoopes has held a couple of stints in Washington as legislative director to Republican senator Scott Brown and as VP of government relations for the ‘Fix The Debt’ campaign. His appointment comes at a time when marketplace lenders have been trying to gain some clout in Washington as regulatory scrutiny tightens.