[grumpymouse]

Part of the 2008 crisis was maturity mismatch of assets and liabilities. That's a fancy way of saying 'I get paid in 3 weeks but I have to pay the gas bill tomorrow'.

If you lend money that's paid back over a long period of time (like a mortgage) and you're funding it by borrowing money that needs to be paid back much sooner, you're going to have difficulties when the market moves to make that short-term funding less available. It's a fundamentally risky position to be in.

Banking regulation introduced since the 08 crisis (Basel III) forces banks to rein in these mismatches, but per the article many of these lenders are not banks..