I'm assuming the "2" is the number of months until Jan. loans start defaulting.
I always figured the auction process helped the borrower. If I'm willing to borrow at 20% and my final rate is 15%, I'm ahead of the game. But if you tell me - "take 25% or leave it", I'm gone. You're now no different than CitiFinancial, or the cash advance check on my CC statement.
My guess is that even with better repayment rates, the returns aren't near the advertised 10.2%. Stabilizing this piece, may give them a better handle on the numbers. But I think originations are going to drop severely. At least in Q1. If the whole experience is perceived as better (by both sides), it may work out...but I doubt it.