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[SLN]

I noticed that Prosper released their Form 10-Q yesterday for the 3rd quarter. Now, I am not an accountant but I would be interested to hear the take on these numbers by others here. They don't look great at first glance, a $2.2million loss which is about the same as the 3rd quarter last year.
http://www.tmcnet.com/usubmit/2010/11/12/5135290.htm

[pioneer11]

In limited instances, we verify the income, employment, occupation or other information provided by Prosper borrower members in listings.

[JohnCalmus]

About the same net loss that Lending Club is sustaining (unless something totally unexpected happens in their next SEC filing).

The fact is, it is still not entirely clear that P2P lending as an industry is viable, although I suspect that it will be within 24 months.

[Urbi_et_Orbi]

I noticed that Prosper released their Form 10-Q yesterday for the 3rd quarter. Now, I am not an accountant but I would be interested to hear the take on these numbers by others here. They don't look great at first glance, a $2.2million loss which is about the same as the 3rd quarter last year.
http://www.tmcnet.com/usubmit/2010/11/12/5135290.htm

You don't need to be an accountant to see where this is ultimately headed.

http://www.ericscc.com/stats/prosper-listing-volume

[Urbi_et_Orbi]

the company incurred expenses related to the renewal of our state securities registrations or qualifications, as well as state security registration payments, in which we were inadvertently late in filing applications to renew our registrations or qualifications in several states.

That explains why some states went offline for a while.

[Urbi_et_Orbi]

We have incurred operating losses since our inception and we anticipate that we will continue to incur net losses through the end of 2010.  We had negative cash flows from operations of $7.3 million and $7.6 million for the nine months ended September 30, 2010 and 2009, respectively.  Additionally, since our inception through September 30, 2010, we have an accumulated deficit of $48.1 million.

[Urbi_et_Orbi]

Exhibits 10.3 and 10.4 are still available from the SEC site, describing the relationship with WebBank.  Prosper has requested these be treated as confidential, so they'll probably disappear soon.

If you're interested in reading them, grab them NOW.

http://sec.gov/Archives/edgar/data/1416265/000141626510000490/0001416265-10-000490-index.htm

ETA: this document also contains Prosper's policies regarding collection and detailed approach to identity theft prevention.

[ira01]

We have incurred operating losses since our inception and we anticipate that we will continue to incur net losses through the end of 2010 our existence. 

Fixed.

[ira01]

Exhibits 10.3 and 10.4 are still available from the SEC site, describing the relationship with WebBank.  Prosper has requested these be treated as confidential, so they'll probably disappear soon.

If you're interested in reading them, grab them NOW.

Have you archived them for posterity?

[Urbi_et_Orbi]

Exhibits 10.3 and 10.4 are still available from the SEC site, describing the relationship with WebBank.  Prosper has requested these be treated as confidential, so they'll probably disappear soon.

If you're interested in reading them, grab them NOW.

Have you archived them for posterity?

Nope.

[Fred93]

Exhibits 10.3 and 10.4 are still available from the SEC site, describing the relationship with WebBank.  Prosper has requested these be treated as confidential, so they'll probably disappear soon.

Yipes, I found this... In exhibit G "Collections policy"...

It is the current policy of Prosper that loans which exceed 120 days delinquent shall be marked for sale to a qualified Debt Buyer.  At the time of the sale, the proceeds shall be credited against the outstanding principal and remainder charged off as a defaulted loan.

They haven't sold any loans in a long long time.  I guess they mean they "mark" them for sale, not actually intending to sell them?

[Urbi_et_Orbi]

Is that kind of like "marking" a loan for review or "marking" a loan for collection?

[Urbi_et_Orbi]

Peer-to-peer lending - or Prosper simply acting as the gimmicky marketing front for a traditional bank, but shifting the risk by using other people's money?

1.   Objective Statement

The Bank’s goal is to establish a Loan program that will be marketed by Prosper.  Marketing and delivery of this product will be made available through Prosper.

http://sec.gov/Archives/edgar/data/1416265/000141626510000490/webbank9d14d2010.htm

[yankeefan]

From 10.4

Company may not securitize the Loan Accounts, or any amounts owing thereunder, without the prior written consent of Bank, which consent may be withheld or conditioned in Bank’s sole discretion

Doesn't prosper attempt to provide Lenders with a security interest in the loans?  THis wording seems strange to me.

[Urbi_et_Orbi]

Credit score (currently using Experian Scorex Plus score):

 
·   For first time Applicants >= 640

 
·   For Applicants who had previously obtained a Prosper loan and paid off the loan in full >= 600

 
·   For Applicants seeking a second loan, and otherwise are eligible for a second loan >= 600