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Author Topic: I clicked on a random car loan  (Read 21622 times)

ferengi31337

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I clicked on a random car loan
« on: April 28, 2009, 07:59:37 am »
Funny that these CPS guys are selling notes through Prosper.  Now I can see why they could afford to pay me 10% for two years:  because they're relending at 17-22%.

I clicked on a a random car loan:

http://www.prosper.com/invest/listing.aspx?listingID=414868

$10,956.56 principal balance offered at premium
$11,277.66 @ 13.20% [that's net yield, but not net of servicing, AFAICT]
Borrower interest rate:
17.70%
Servicing fee:
3.00%
Loan-to-value:
118%

WTF, 118% LTV at origination and selling for a premium?  Yow, that is one spicy meatball.

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Senator

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Re: I clicked on a random car loan
« Reply #1 on: April 28, 2009, 08:09:19 am »
Will the car be repo'd when this loan goes late?
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Stats as of 12/29/2010:
Total withdrawals: $3,488.87 minus (-) Total deposits: $3,600.00 = ($111.13)
Cash balance: $0
Principal value of active notes:  $0
Total active notes: 0 of 70.

Successful loans are made to persons who are on a clear path to financial stability. -Mjerryfirst May 18th, 2008.

I know that when I make my 10% those "unbelievers" will call it luck cause that will be the easiest way to excuse their mistakes. -Researchpro May 5th, 2009.

It's a great time to be poor and irresponsible in America. -PPT May 2009

ferengi31337

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Re: I clicked on a random car loan
« Reply #2 on: April 28, 2009, 08:20:10 am »
And the answer is:  maybe.

Quote
If one of the Open Market loans underlying one of your Notes becomes delinquent, the loan seller may refer the Open Market loan to a collection agency at any time, or elect to initiate legal action to collect the Open Market loan, repossess or foreclose upon any collateral securing the Open Market loan, or sell an Open Market loan to a third party debt buyer at any time.
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xraider

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Re: I clicked on a random car loan
« Reply #3 on: April 28, 2009, 08:20:57 am »
Senator, of COURSE the car will be repo'd.  Doug Fuller will be in charge of that, and we've all seen how effective he is!
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Prosper missed me.  They lifted my suspension a day early.

msava

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Re: I clicked on a random car loan
« Reply #4 on: April 28, 2009, 08:23:01 am »
How did the borrowers know Prosper would be up and running today? Was there some secret communication to borrowers?
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big-al

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Re: I clicked on a random car loan
« Reply #5 on: April 28, 2009, 08:27:14 am »
Quote from: msava on April 28, 2009, 08:23:01 am
How did the borrowers know Prosper would be up and running today? Was there some secret communication to borrowers?

Contrary to appearances, there are not that many borrowers yet.  I see 8 listings other than those where CPS is trying to pawn off it's bad loans on us.

ETA:  And of those 8, 7 of the borrowers had prior Prosper loans.  The other borrower had 2 prior listings.  I suspect Prosper sent out an email begging for borrowers.
« Last Edit: April 28, 2009, 08:30:06 am by big-al »
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112233

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Re: I clicked on a random car loan
« Reply #6 on: April 28, 2009, 08:43:17 am »
yeah, I want to see some evidence that companies arent going to use prosper's framework to dump their crap loans on us before we can see what makes them crappy.
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bankomatic

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Re: I clicked on a random car loan
« Reply #7 on: April 28, 2009, 09:06:41 am »
Quote from: 112233 on April 28, 2009, 08:43:17 am
yeah, I want to see some evidence that companies arent going to use prosper's framework to dump their crap loans on us before we can see what makes them crappy.

I am seeing evidence of just the opposite. Every loan I clicked on had a current DQ and to me current DQ means huge risk. I think they are dumping their trash on prosper.
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bamalucky

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Re: I clicked on a random car loan
« Reply #8 on: April 28, 2009, 09:12:14 am »
These car prices look way too high..

Notice the loans are for oddball cars too..Those you see being dumped at car sales.
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bamalucky

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Re: I clicked on a random car loan
« Reply #9 on: April 28, 2009, 09:12:49 am »
Here's a nice Hawaii loan for those with the itch  :ninja:

http://www.prosper.com/invest/listing.aspx?listingID=414874
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bamalucky

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Re: I clicked on a random car loan
« Reply #10 on: April 28, 2009, 09:14:09 am »
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There are no stupid questions, just stupid people.

Tokyo Joe

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Re: I clicked on a random car loan
« Reply #11 on: April 28, 2009, 09:19:30 am »
Here's a "D" car loan for sale...

http://www.prosper.com/invest/listing.aspx?listingID=414885

It says his credit is 500-520...

Didn't Prosper ban individuals from taking out loans with a score below 540? 

But it is OK for "institutions" to sell *worse* credit holders' loans??

Seems pretty sleazy to me.  Mealsothinks these loans are not what they appear to be...
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bamalucky

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Re: I clicked on a random car loan
« Reply #12 on: April 28, 2009, 09:21:10 am »
Quote
Mealsothinks these loans are not what they appear to be...

Me either..Looks like they are teamed up with used car central to dump loans.

A car default swap,sorta like the mortgage loans.
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bankomatic

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Re: I clicked on a random car loan
« Reply #13 on: April 28, 2009, 09:22:09 am »
Well the company who is supposedly dumping loans is publicly traded.

http://www.google.com/finance?q=NASDAQ%3ACPSS

They aren't having a very good year, heh.
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Tokyo Joe

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Re: I clicked on a random car loan
« Reply #14 on: April 28, 2009, 09:22:55 am »
Quote from: bamalucky on April 28, 2009, 09:21:10 am
Quote
Mealsothinks these loans are not what they appear to be...

Me either..Looks like they are teamed up with used car central to dump loans.

A car default swap,sorta like the mortgage loans.

That's what I'm thinking too...  Hmmm.... This could turn out to be interesting.  I almost want to call in sick to work today so I can spend all day digging deeper into all of this...
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