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[Loan_shark_74]

Unless I missed it, I don't see your account balance listed anywhere.  All I see is your remaining principal balance, without the accrued interest on the active loans.  That makes it impossible to get accurate XIRRs.    

You can have accurate XIRR's. Your XIRR will just not reflect accrued, but unpaid, interest. Think of it like a CD; once a month your value updates with accrued interest compounded in to your balance. The list of bad loans in your XIRR document must include only outstanding principal. Essentially, this is a more accurate XIRR, because it reflects only interest earned that you have actually recieved not accrued.

Yes, but it makes the XIRR jump around from day to day, for no good reason.  Accrued interest (at least on current loans) should be included in the account balance.

IRA,

It's even worse. I received over 39$ in completed payments 20 minutes ago. My "principal value of active loans" did not change. Where the "account value" of old entailed principal, interest, cash, and pending payments, this "principal value of active loans" only entails unpaid principal. The principal for pending payments is not included in the "principal value of active loans."

[Loan_shark_74]

While it is nice that Prosper has a total for "principal value of active loans", they should also have a "Prosper account total". The "Prosper account total" would include all value of your Prosper account to include interest accrued, principal, cash, and pending payments.

[bamalucky]

Are closing fees for all loans 3%?

[cowdog]

There is a closing fee of 3% on all loans now, with a minimum of $75.

http://www.prosper.com/help/contextual/fees.aspx

[Senator]

SO that's a $750 fee on a $25,000 loan ! Crazy if you ask me.

[Chamatrain]

There is a closing fee of 3% on all loans now, with a minimum of $75.

http://www.prosper.com/help/contextual/fees.aspx

3 points on a high-rate, low-balance personal loan to AA rated borrowers?  I wonder how many of us would pay any attention whatsoever to Prosper.  Xenon, I hope you're paying it off after you pay the points.

[bamalucky]

Once again with an origination fee that high only the most desperate will borrow.

[ira01]

SO that's a $750 fee on a $25,000 loan ! Crazy if you ask me.

Not as crazy as a $75 fee on a $1,000 loan.   

[bamalucky]

SO that's a $750 fee on a $25,000 loan ! Crazy if you ask me.

Not as crazy as a $75 fee on a $1,000 loan.   

Well in all honesty,none of those fees really matter when you don't intend to repay the loan.

[cowdog]

For 3% it would be better to deal with a cash advance from a credit card.

At least there would be customer service, you could call and actually speak to someone.

 

[ira01]

SO that's a $750 fee on a $25,000 loan ! Crazy if you ask me.

Not as crazy as a $75 fee on a $1,000 loan.   

Well in all honesty,none of those fees really matter when you don't intend to repay the loan.

True -- although since the origination fee is withheld from the loan disbursement, Prosper -- unlike the lenders -- gets its money even if the borrower doesn't make a single payment.  I bet Prosper would care a lot more about collections if it only got the origination fee at the END of the loan term.

[Capital_Finance_Group]

For 3% it would be better to deal with a cash advance from a credit card.

At least there would be customer service, you could call and actually speak to someone.

 

I did the calculation on a $25K 15% 36-month loan - the APR is 17.17% - the fee adds 2.17% to the borrowers interest rate.

[Senator]

I did the calculation on a $25K 15% 36-month loan - the APR is 17.17% - the fee adds 2.17% to the borrowers interest rate.

Is that in addition to the $750 due at closing?

[ira01]

I did the calculation on a $25K 15% 36-month loan - the APR is 17.17% - the fee adds 2.17% to the borrowers interest rate.

Is that in addition to the $750 due at closing?

No -- the APR is the effective rate taking any upfront fees into consideration.

[fitznd]

Minimum credit scores from individual borrowers will be 640.

640 was the bottom end of the "C" credit grade.  Goodbye to the old "D" and "HR".   Good move.

C & D were by far the best cohort of borrowers, in my estimation.  Many students fit into this group, and they are/were (as I am aware) the most profitable group.

Basically the only way to garner value from Prosper is to find loans where the credit rating does not adequately reflect (exaggerates) the risk.  For instance, an individual with 2 years of credit history just starting his new job.  Then you're encountering a situation where your information is better than the bank's information, and that edge is a potential positive return.  Eliminating low Cs & Ds, while eliminating many poor borrowers, also cuts out some of the best value there is to be found on Prosper.