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[Beerbud1]

1) Hasn't Prosper already hired a company to service notes in case of BK?

Depends on what you mean by "hired".  There's supposed to be some sort of arrangement, but I doubt that Prosper has paid them anything.  Therefore I suspect it's just "talk".

of course, since Prosper lies all the time, it could be total baloney that they've got someone "lined up"

"In January of 2009 we entered into a back-up servicing arrangement with a company called CSC.  By this agreement essentially Prosper purchased servicing insurance on behalf of all lenders.  In exchange for a monthly fee, if Prosper were unable to continue servicing loans CSC will step into Prosper’s shoes and continue to service such active loans through their remaining life.  Upon such event CSC would also be entitled to Prosper’s future servicing fees.  CSC is a reputable company with an established track record of loan servicing and we are thrilled to have them as a partner [http://www.csc.com].

Sincerely,
Prosper Customer Support "

BAEVentures

I wonder if this is who they are talking about:
http://www.csc.com/credit_services

[mothandrust]

Servicing is easy--if there is money in Prosper's account, someone can and will collect a fee to pay it to the appropriate party, be that a lender, an employee, a contractor, etc.

If there isn't enough money to pay everyone then you have a problem--why should the lender get 100 cents on his claim but the phone company has to wait and maybe get 20 cents?

Worry about solvency, not servicing.

[xraider]

1) Hasn't Prosper already hired a company to service notes in case of BK?

Depends on what you mean by "hired".  There's supposed to be some sort of arrangement, but I doubt that Prosper has paid them anything.  Therefore I suspect it's just "talk".

of course, since Prosper lies all the time, it could be total baloney that they've got someone "lined up"

"In January of 2009 we entered into a back-up servicing arrangement with a company called CSC.  By this agreement essentially Prosper purchased servicing insurance on behalf of all lenders.  In exchange for a monthly fee, if Prosper were unable to continue servicing loans CSC will step into Prosper’s shoes and continue to service such active loans through their remaining life.  Upon such event CSC would also be entitled to Prosper’s future servicing fees.  CSC is a reputable company with an established track record of loan servicing and we are thrilled to have them as a partner [http://www.csc.com].

Sincerely,
Prosper Customer Support "

BAEVentures

Yeah, yeah, yeah.  They were thrilled to bring us the reputable AmSher too.   

[zapp05]

1) Hasn't Prosper already hired a company to service notes in case of BK?

Depends on what you mean by "hired".  There's supposed to be some sort of arrangement, but I doubt that Prosper has paid them anything.  Therefore I suspect it's just "talk".

of course, since Prosper lies all the time, it could be total baloney that they've got someone "lined up"

"In January of 2009 we entered into a back-up servicing arrangement with a company called CSC.  By this agreement essentially Prosper purchased servicing insurance on behalf of all lenders.  In exchange for a monthly fee, if Prosper were unable to continue servicing loans CSC will step into Prosper’s shoes and continue to service such active loans through their remaining life.  Upon such event CSC would also be entitled to Prosper’s future servicing fees.  CSC is a reputable company with an established track record of loan servicing and we are thrilled to have them as a partner [http://www.csc.com].

Sincerely,
Prosper Customer Support "

BAEVentures

yep, still doesn't mean it is true