https://app.ethlend.io/faw on how to and for the rest:
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.
Hope this helps, I invite you to Telegram for further discussion if necessary: t.me/@ETHLend