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[God-Father]

All I had to do was ask.  Here is the answer from Prosper Support.

Back in January we entered into a back-up servicing arrangement with CSC to act as Prosper’s back-up servicer. Essentially Prosper has purchased servicing insurance on behalf of the lenders. In exchange for a monthly fee, CSC has agreed to step into Prosper’s shoes and service any active loans through their remaining life. If CSC became the servicer, they would also be entitled to Prosper’s future servicing fees. CSC is a large reputable company with an established track record of loan servicing and we are thrilled to have them as a partner [http://www.csc.com].

[Mark12547]

May I move this thread to The Lobby?

[bamalucky]

So who pays this fee?

Shouldn't these funds be in escrow now in case of a BK?

[God-Father]

May I move this thread to The Lobby?

Sure

[red12049]

All I had to do was ask.  Here is the answer from Prosper Support.

Back in January we entered into a back-up servicing arrangement with CSC to act as Prosper’s back-up servicer. Essentially Prosper has purchased servicing insurance on behalf of the lenders. In exchange for a monthly fee, CSC has agreed to step into Prosper’s shoes and service any active loans through their remaining life. If CSC became the servicer, they would also be entitled to Prosper’s future servicing fees. CSC is a large reputable company with an established track record of loan servicing and we are thrilled to have them as a partner [http://www.csc.com].

So who was the servicer during the previous three odd years that Prosper said it had?  (bolding mine)

R

[God-Father]

http://www.csc.com/banking/ds/11312/13023-consumer_loan_administration

Backup servicing is a specialized field, requiring proven systems and
processes, as well as the experience of professionals who understand
the specific business needs of each client.