zcommodore

I just placed my first bid since before Thanksgiving.  Once again, it's an autofund loan.  For some reason I can't stop bidding on those.  However, in this case it's a friend from IRC who has AA credit but is somewhat rate-capped in Texas at 8.32%.

Anyway, I have noticed Prosper is continuing to make improvements towards profitability.  Even though the totals for December are flat compared to January of last year, they increased borrower fees significantly so that will help their bottom line.  Lenders are making significantly better choices overall as far as loan quality based on credit grade it appears and Prosper is continuing to work on collections--all good signs.  Also, Prosper is working on correcting some mistakes they made in the various lender/group leader agreements and compensating the lenders and group leaders so that tells me that Prosper is trying to do the right thing.

For me, the acid test will be if Prosper can finally start to attract enough of the higher-grade borrowers such that total loans starts to go up significantly.  I want to believe in this company but it's hard when I see the number of loans staying flat when I know they are losing money and there's no sign of stopping.