As can be seen HERE, the historical default rate for E loans on Prosper has been almost 50%. Gee, I wonder what that will do to the ROIs of lenders lending at 28%?
Prosper changed the rating system. They used to give us "credit grades" AA, A, B,... HR. Now they give us "Prosper Rating" AA, A, B, ... HR.
An "E" in the old system (which is what is plotted by rateladder) is not an "E" in the new system. The old credit grade E meant a credit score in the range of 560-599.
In the new Prosper, folks with a credit score in that range aren't allowed to borrow at all. Every borrower now has to be >640.
By using the same scale, ie AA, A, ... HR for both systems they made this all confusing, but those are the facts.