Owner: Prosperous Land URL:http://prosperousland.blogspot.com Join Date: Thu, 23 Aug 2007 11:42:28 -0500 Rating:0 Site Description: Keeping an eye on Prosper and peer to peer lending. Site statistics:Click here
Disclaimer On Prosper's Estimated Default Rate 2007-11-09 09:34:00 Prosper has unveiled their new estimated loss calculation for loans. Notice those disclaimers down along the bottom. Yeah, me neither. Well, there's an interesting note.
If you get out the magnifying glass, you'll read:
1Estimated
average annualized loss rate based on the historical performance of Prosper loans for borrowers meeting the estimated loss criteria, originated between Jun-01-2006
Read more:Default
Prosper and the Community 2007-11-08 12:34:00 I have always been perplexed by the relationship that Prosper has maintained with it's lending community. Just since I've been paying attention, there have been the equivalent of online riots in the Prosper forums over group rewards, personal information, blenders (borrower-lenders), confirmed (yet unconfirmed) features, and information hiding. Some have consisted of lenders trying desperately to
Return of the Expired Listings 2007-11-08 06:48:00 zcommodore was the first to spot that expired listings are back. This fix probably went in with a host of other hot fixes last night. However, folks need to be logged into a Prosper account to view expired listings. This is obviously a nod to Prosper's privacy concerns. I see this as a reasonable limitation since it still lets lenders observe past listings and use them educationally to improve
Read more:Return
Prosper Search Results Lagging Beyond Listing's Status 2007-11-07 11:15:00 I've noticed that when I search for listings to bid on, the listing's status seem to differ between the search results listing and the individual listing view. One of my many individual searches turned up this listing:
C grade, low amount ( Read more:Search
, Status
Older Listings To Return? 2007-11-07 08:36:00 bamalucky has it that the ability to view old listings will be restored in some form in the next week or two:
Tom Underdown just called me to tell me that old listings would be back in the next hot fix.
ETA:By next week
Tom is Prosper's Lender Services Manager. This has been a hot-button topic for lenders in the forums with a significant amount of time spent decrying the change. Lenders feel
Read more:Return
Prosper Crackdown On Ira01 2007-11-06 13:51:00 Ira01 has become the latest crackdown victim (or prospers.org). Ira01 was vocal on the forums and provided many insights to how the marketplace works. His Prosper lending account has been suspended and he's been booted out of the forums. Ira has been a strong voice in the forums and community. Whether this was fair or not, you be the judge.
Prosper's position:
It has come to Prosper's attention
Read more:Crackdown
My Collections Metrics Flawed 2007-11-06 11:09:00 Oh fiddle-faddle. As Lend2 has pointed out, my method of tracking Prosper collections is a bit flawed. Prosper has confirmed that, indeed, loans don't just go current when payments are made. From deep within the inner workings of Prosper:
For the raw “Delinquency Activity” data he is looking at I think he’s assuming a loan has fewer options about how it can change state, aging or curing than it
Read more:Metrics
Borrowers Allowed To Refinance Loans After all 2007-11-14 13:34:00 Prosper Shira has popped up and clarified that the previous interpretations were wrong and that borrowers can refinance their loans and that the agreement will be made more clear in the future. Points to Prosper for getting this one straightened out quickly.
Prosper’s Borrower Registration Agreement (BRA) now permits additional loans under certain circumstances, but also provides that “You may
Read more:Borrowers
, Refinance
, Loans
Prosper Violating The Lender Registration Agreement Again 2007-11-14 07:25:00 As had been previously noted, Prosper is testing out a new collections agency. The fly in the ointment is that HollowOak spotted that it's kinda, sorta, maybe against the lender registration agreement.
I know this is a touchy subject area, but are Prosper (again) violating the lender agreement? Lender
s signed up on a loan on condition that it be handed over to a named agency as laid down in the
Read more:Registration
, Agreement
, Again
Prosper's October Market Survey 2007-11-13 10:07:00 Prosper has released their October
market survey. This one has produced a great wealth of topics to explore, and I find that I have some contrasting opinions as well as insights with Chris Larson's market commentary. Now, where to begin.
While Prosper continues to remain on a rapid growth trajectory as indicated by year-to-date funded loan volume, which is up $48 million or 233%
Read more:Market
Prosper Testing New Credit Agency? 2007-11-12 16:48:00 I have no confirmation other than an individual forum post, but it sounds like Prosper's trying out some new collections technique. Is this the legal field test that Doug Fuller referred to in his Q & A? Ahh, endless, unconfirmed speculation. From the forums:
I decided to look at some of my 4+ lates and I see where it says
Collection agency:"NEW AGENCY TEST".
Then it says something like 0.00
Read more:Testing
, New Credit
Prosper Fixes Lender Agreement Violation 2007-11-12 07:09:00 About two weeks ago, traveler505 noticed that Prosper hasn't distributing funds from borrower payments properly (or in compliance with their loan handling agreement). Prosper Shira has followed up with the explanation.
Thank you for unearthing this error: a classic example of how the Prosper community helps us improve the site and our operations on an ongoing basis. You are correct: there is a
Read more:Lender
, Agreement
Alternative View Of Prosper Forums 2007-11-11 15:07:00 The Prosper forums can turn into an echo chamber with some very angry folks returning to the same arguments again and again. I want to add a difference perspective on the forum wars from one of my favorite forum posters, rgf.
Just another whining poster that thinks because they weren't successful, no one can be, and the reason they weren't successful was prosper's fault, and not their own. And
Read more:Alternative
, Forums
Linkfest 2: The Search For More Money 2007-11-10 08:02:00 Right after buying linkfest the t-shirt and linkfest the flame thrower, check out the latest from around the web (and if you have no clue what I'm referring too, catch up on your Mel Brooks movies):
Hyve Up has done a video interview with Chris Larson. My translation of CEO speak: "Banks are the man. Damn the man! We're taking him down." Nothing about saving the Empire, though.
zcommodore has
Read more:Money
, Search
Off To Thanksgiving Goodness 2007-11-19 21:35:00 I'm going to be taking what I think is a well earned vacation over the next several days. The downside is that the relatives we're staying with are not quite so tech savvy so my internet access may be quite spotty. All that translates into slow motion on Prosperous Land if I'm truly staying at an internet deficient household.
If you're missing your Prosper fix, try some of these folks out:
P2P
Read more:Thanksgiving
, Goodness
Prosper Adding To Collections Effort 2007-11-18 22:50:00 RateLadder beat me to this (that'll teach me to being Thanksgiving sloth-hood early), but you're missing the rest of the story.
Mr Deluxe posted to the forums that while late on his loan, he had received a letter from Prosper:
OK- I will tell. My loan was recently under 30 days late (now current) I received several emails from Prosper, but the letter I got in today’s mail was very effective.
Read more:Effort
Indiana Linkfest And The Temple Of Blogs 2007-11-17 20:25:00 Don't forget your hat!
Finance Is Personal tries to figure out if Prosper is competitive with other investments:
Prosper.com might not be able to beat out a typical mutual fund in terms of investment, but it is several steps ahead of a savings account at an online bank such as ING Direct or HSBC Direct. You’ll only earn around 4.5% APY on your money at these places, but you know that your money
Read more:Indiana
, Temple
, Blogs
Communications Over New Collections Test 2007-11-16 16:15:00 Spotted on the forums and via RateLadder. This a continuation of the new collections agency saga where Prosper might've been violating the lender agreement. A mere trifle, really, and hardly worth mentioning.
Prosper has followed up on criticisms and notified lenders that their loans had become test cases. I've always been a fan of doing the Right Thing (TM) even if the average lender wouldn't
Read more:Communications
It's Friday - Go Laugh 2007-11-16 10:32:00 What good is having a blog if I can't use it to remember stuff. I ran across Yoram Bauman about 6 months ago. It popped up again on Get Rich Slowly this week right when I needed a good (though nerdy) laugh. So, go laugh:
I know what you're thinking. "That's great and all Mike, but this is a Prosper blog". Fine. Be that way.
Prosper passed $100M in loans. They need a cake, and you get to go
Read more:Friday
Prosper Adds Freakonomics To Prosper Days 2007-11-15 13:45:00 RateLadder beat me to the punch, but why waste those precious electrons...
Prosper Days 2008 is Prosper's lender conference happening in late February (yes, in 2008). Prosper Shira just made a quick posting to the forums that Freakonomics
co-author Stephen Dubner will be doing Tuesday's keynote speech.
We are pleased to announce that Stephen Dubner, co-Author of Freakonomics, will be our
Prosper's October Income 2007-11-15 13:42:00 Following up on last month's post documenting how Prosper makes money, I plan to keep looking at their monthly income monthly to see how they're progressing as a business. This will be the last time I can use my simplified method for accounting for servicing income. Prosper adjusted the servicing charge for A and AA loans in their latest large feature upgrade (1% and 0%, respectively), so I'll
Read more:October
, Income
DONE -- Old Debt Never Dies 2007-12-21 19:05:00 For those vindictive lenders, this is a chance to savor the schadenfreude (not that there are any in the Prosper lending community who would be vindictive. No, none at all). For borrowers, this is another indicator that bad debt can haunt you for a long time to come.
In a financial version of Night of the Living Dead, debts forgiven by bankruptcy courts are springing back to life to haunt
Digging For Gold Around Prosper's Portfolios 2007-12-07 12:12:00 This was a guest post on Prosper's new blog.
When Prosper created their portfolio plans, they added a tool to help new lenders enter the marketplace. It assembles a portfolio of loans whose only objective is to track the average loan return in the specific market slices, much like index funds have done with the stock market. Want to play it conservative, you buy a S&P 500 Index. Feeling
Read more:Portfolios
Anecdotal Stories Of Improving Collections 2007-12-07 07:28:00 There have been some anecdotal reports that Prosper is making minor headway in improving their loan collections. It's very preliminary and sketchy, but it leaves open the possibility of progress.
First, a few members of the prospers.org forums have noticed that loans transferred to the new test collection agency have shown some life (reg required). Two loans in this group that were 4+ months are
Read more:Stories
The Cathedral of the Bizarre 2007-12-06 14:29:00 I had originally replied to Prosper's blog post by leaving a comment (which was deleted by moderators - grrrr), but found that there was more to pontificate on and kept going.
In Prosper's blog post Money and Merit: Web 2.0’s Threat to the Power Elite, Chris Larson invokes Eric Raymond's The Cathedral
and the Bazaar and draws allusions to Prosper being the bazaar that will challenge the banking
Read more:Bizarre
Hiccup In Portfolio ROI Estimation 2007-12-05 08:54:00 Prosper refreshed the statistics for the bidding and portfolio ROI in the last day or so. The new statistics are for loans underwritten between June 1, 2006 and Sept 30, 2007 as viewed from Oct 31, 2007. Prosper Andrew has suggested that it takes several days for all of the ACH transactions to settle out in the statistics, which I'm guessing is why they don't use Nov 30 as the observation date.
Read more:Hiccup
, Portfolio
, Estimation
Sizable Prosper Upgrade, Including Prosper Blog 2007-12-06 12:17:00 Prosper dropped a rather sizable upgrade last night, including the Prosper blog as I revealed was coming soon. The full list can be found on the Prosper forums (login required - grrrr), but two items caught my interest.
First, Prosper will now be providing rate guidance for borrowers. This is beneficial since it will help borrowers avoid the frustration associated with low-balling their initial
Official Prosper Blog Coming Soon 2007-12-04 17:00:00 It started with an eagle eyed lender on the prosper.org forum spotting an interesting tid-bid in a Prosper job posting on the San Francisco Craigslist employment area. Prosper is looking for a temp to fill in for a while, and running the Prosper Company Blog (noted as forthcoming) was one of the job responsibilities.
Prosper has now confirmed to me that they will be launching an official blog in
Read more:Official
Revisiting Group Rewards 2007-12-04 07:49:00 After my initial reaction to Prosper removing group rewards, I spent some time understanding the (near) collective wisdom that group rewards needed to go. I've hit acceptance. The positive group leaders could not overcome the market-distorting effects of the pump and dump and the community payment.
Here's how the pump and dump worked. A group leader would take smaller loans with high interest
Read more:Group
, Rewards
New Attempt At Observing Collections Progress 2007-12-03 06:56:00 My previous attempt at getting a handle on how collections are proceeding on Prosper following the arrival of the new VP of operations didn't go so well. I did not have a grasp on how successful collections impact the reported loan status. Time to try again.
At the beginning of each month, I'll download the raw Prosper loan data. It'll be processed to determine loans that increased in their
Read more:Observing
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