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[onthefence]

Where is it?

[Spider5]

http://www.sec.gov/Archives/edgar/data/1416265/000110465909002910/0001104659-09-002910-index.htm

Links to the other recent filings here:

[nonattender]

granted, i skimmed, but still no accounting for the NAT loans and whatever it is that lenders own now instead of loans... (i dare not say it.)

-t

[xraider]

Since our inception in November 2005 through October 16, 2008, we have facilitated 28,940 borrower loans with an average original principal amount of $6,172 and an aggregate original principal amount of $178,622,722 on our platform.  As of December 31, 2008, of these outstanding loans, 61.1% were current, 16.5% were paid in full, 1.2% were 15 to 30 days late, and 4.8% were more than 30 days late.  In addition, of these outstanding loans:

 

·                  7,959 loans, or 27.5%, have ever been more than 15 days past due on at least one occasion;

 

·                  6,814 loans, or 23.5%, have been more than 30 days past due on at least one occasion at one time; and

 

·                  16.5% had defaulted (a borrower loan is considered to have defaulted when it is more than 120 days past due or has filed a bankruptcy which has been discharged).

Fred, any comment?

[yankeefan]

The S-1 outlines a possible secondary market- with loans offered and traded through a broker-dealer, not Prosper.

Also describes loans offered by other institutions on Prosper platform- we can buy the bank's auto loans, I guess, but won't have direct interest in the car if default- depend on the bank to seize it and sell.

[Investar]

Also describes loans offered by other institutions on Prosper platform- we can buy the bank's auto loans, I guess, but won't have direct interest in the car if default- depend on the bank to seize it and sell.

Can you tell us about what page # this is on? I wasn't aware of this!

[yankeefan]

Also describes loans offered by other institutions on Prosper platform- we can buy the bank's auto loans, I guess, but won't have direct interest in the car if default- depend on the bank to seize it and sell.

Can you tell us about what page # this is on? I wasn't aware of this!

These are the "open market notes" or "open market loans"- described throughout the S-1-  use find or search on those terms

First description is on page 2

Open Market Loans.  Our platform permits originators to offer open market loans for sale by posting listings on the platform indicating an initial sale price of the loan and the yield percentage that corresponds to the sale price.  Open market loans have a fixed interest rate, maturities of at least three months and may be unsecured or secured by personal property.  Open market loans are existing loans that are owned by the originator that posted the listing, whether or not such originator originally made the loan.  Open market loans may include existing consumer loans or retail installment sale contracts as well as small business loans, where the borrower is a business entity, not an individual (although one or more individuals may be a guarantor of the loan).  Open market loans will be serviced, both before and after any default, by the originator.  In servicing open market loans the originator will use commercially reasonable efforts to service and collect the loans in accordance with industry standards customary for loans of the same general type and character as the open market loans.

[Investar]

These are the "open market notes" or "open market loans"- described throughout the S-1-  use find or search on those terms

First description is on page 2

Open Market Loans.  Our platform permits originators to offer open market loans for sale by posting listings on the platform indicating an initial sale price of the loan and the yield percentage that corresponds to the sale price.  Open market loans have a fixed interest rate, maturities of at least three months and may be unsecured or secured by personal property.  Open market loans are existing loans that are owned by the originator that posted the listing, whether or not such originator originally made the loan.  Open market loans may include existing consumer loans or retail installment sale contracts as well as small business loans, where the borrower is a business entity, not an individual (although one or more individuals may be a guarantor of the loan).  Open market loans will be serviced, both before and after any default, by the originator.  In servicing open market loans the originator will use commercially reasonable efforts to service and collect the loans in accordance with industry standards customary for loans of the same general type and character as the open market loans.

Very very interesting. Thank you. I guess my question is, aside from another source of fee revenue from both sides of the transaction, why is Prosper muddying the waters with this new notion?

edit to revise and extend Oh wait, this refers to the secondary market. Nothing new here.

[Urbi_et_Orbi]

How could anyone feel confident investing on Prosper after reading through that filing?

[112233]

they have 13M left as of 9/30/2008

[112233]

15.  Subsequent Events
...
On November 26, 2008, a class action lawsuit was filed against the Company, certain of our executive officers and our directors in the Superior Court of California, County of San Francisco, California.  The suit was brought on behalf of all loan note purchasers in our online lending platform from January 1, 2006 through October 14, 2008.  The lawsuit alleges that Prosper offered and sold unqualified and unregistered securities in violation of the California and federal securities laws.  The lawsuit seeks class certification, damages, the right of rescission and the award of attorneys’ fees and costs against Prosper and the other named defendants.  The final outcome of this lawsuit is not presently determinable or estimable.
..

[arebelspy]

they have 13M left as of 9/30/2008

what i'm worried about is not them running out, but running to a point where the vc yanks back what's left to save a little capital.

[Spider5]

what i'm worried about is not them running out, but running to a point where the vc yanks back what's left to save a little capital.

Could that even happen?  I don't think VC's do that.

[mothandrust]

They should thank their lucky stars that no one is suing them for fraud, misappropriation of funds, bad faith, breach of contract, etc.  That wouldn't be a rosy thing to have to put in the prospectus.

[ira01]

they have 13M left as of 9/30/2008

And no doubt a hell of a lot less now, 4 months later.  $1M to the NASAA (or whatever that group's acronym is), probably $1M in legal fees, a hell of an operating burn rate with very little income coming in, etc.