If the borrower defaults, the tokens can be claimed by the lender.
The lending is pseudo-anonymous currently and since lending is collateral-based that is ok. They are going to add KYC as well.
Not sure about FDIC but the smart contract is available for banks and institutional lenders as well.https://app.ethlend.io/faw on how to and for the rest:

Hope this helps, I invite you to Telegram for further discussion if necessary: t.me/@ETHLend