Patch of Land announces loan collateral changes

Real estate crowdfunding finance platform Patch of Land (POL) took steps to improve investor protection with a format restructuring announced this week.

All existing and future POL loans on the platform will now be directly secured by underlying collateral, making the platform the only marketplace lender displaying investments directly secured by underlying property and which work with a trustee.

Prior to this announcement only directly secured investments were only available with whole note purchases.

“We pride ourselves on having the most secured offering structure and being the most transparent and innovative platform for people investing in fractionalized real estate peer-to-peer loans,” said POL General Counsel Amy Wan. “All of us at Patch of Land think this is very exciting as it’s pushing the industry forward while making peer-to-peer lending for real estate a more commonplace activity for investors.”

Ms. Wan said POL chose to publicly share is documentation in an effort to improve industry-wide transparency.

“We’re committed to improving the marketplace lending industry for investors, and making our documents publicly available may pressure other platforms to do the same,” said Wan. “We’re already in the process of developing our 3.0 offering structure which will continue to push the industry forward, while providing Patch of Land investors an ever more secure, superior product.”