I disagree.
I think if your credit is good enough, you should get a 2 point discount in APR in exchange for the 5 point prepayment penalty, and make that an option on the loan.
That way "greedy" lenders like moth here can filter out "non-conforming" loans and then brag how you guys are stupid for funding the ones that don't carry a prepayment penality and prove it with portfolio performance---and then everyone can live happily ever after.
Deadbeats still don't care whether their loans carry prepayment penalties are not. If people actually cared about not being charged a bunch of gotcha fees when they sign a contract, then Sprint/NEXTEL and Verizon would have zero customers.
...and only 18.12% have been payed off...
...And when they paid you off you lost the strongest loan in your portfolio (a borrower who was able and willing to pay the entire balance).
Those borrowers either refinanced at a lower rate or their financial situation improved so he didn't need the loan.
Prosper 2.0 should have a 5% prepayment penalty.