zcommodore

Prosper had another site update early last week.  Lenders seem to be reacting to the news but it doesn't look good already.  Loan counts are going down from day to day on average.  Check out this graph:

Notice how the 10-day average is dropping very rapidly.  Of interest to me is that a similar thing happened after the last update in mid-September but it recovered by the en dof the month and was fairly flat after that.

I wonder how much of the change is due to Prosper showing lenders how much they could lose on borrowers who don't meet certain minimum criteria so lenders just stopped lending altogether and how much is a backlash from the removal of past listings and/or in reaction to some of the recent turmoil in the forums.

This is going to be interesting to watch.