very interesting read... looks like P is going to make a WHOLE NEW SET OF INCOME-REQUIREMENTS IN ORDER TO LEND... HAHAHAHAHAHAHAHAHAHAHAHA!!! seeing how they were totally incompotant on verifying incomes of borrowers just how do they plan on determing members non-real-estate-net-worths:
FROM PAGE 6 AT
http://www.sec.gov/Archives/edgar/data/1416265/000110465909035890/a08-29602_5s1a.htmFinancial suitability
To purchase Notes, lender members located in Alaska, Idaho, Kansas and Pennsylvania must satisfy minimum financial suitability standards and maximum investment limits. Specifically, lender members must either: (1) have an annual gross income of at least $70,000 and a net worth (exclusive of home, home furnishings and automobile) of at least $70,000; or (2) have a net worth (determined with the same exclusions) of at least $250,000. In addition, no lender member located in these states may purchase Notes in an amount in excess of 10% of the lender member’s net worth, determined exclusive of home, home furnishings and automobile.
Lender members that are residents of California must meet certain suitability requirements, described herein. There are no suitability requirements for individuals who have not purchased more than $2,500 of Notes in the past 12 months. To purchase more than $2,500 of Notes, a California lender member’s investment must not exceed 10 percent of his or her net worth, and either: (1) the lender member must have a minimum net worth of at least $75,000 and had minimum gross income of $75,000 during the last tax year and will have (based on a good faith estimate) minimum gross income of $75,000 during the current tax year; or (2) the lender member must have a minimum net worth, exclusive of homes, home furnishings and automobiles, of $200,000. Assets included in the computation of net worth shall be valued at not more than fair market value. For the purpose of this net worth requirement, both a husband and wife may be counted as a single individual.
Lender members should be aware that we may apply more restrictive financial suitability standards or maximum investment limits to residents of certain states. If established, before making commitments to purchase Notes, each lender member will be required to represent and warrant that he or she meets these minimum financial suitability standards and maximum investment limits. See “Financial Suitability Requirements” for more information.