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[ira01]

From Prosper's latest email spam (just received minutes ago):

We also wanted to let you know that we've heard your requests and are making some changes to the loan listings available on the site. Most noticeably, we have brought back the HR category and reinstated the E-HR Automated Plan. In addition, we have lowered rates for many borrowers, particularly lower-risk customers returning for a subsequent loan.

 

[pioneer11]

They have a short memory.

[DCS]

Is it just they're adding a category named HR, or are they actually lowering the minimum credit score?

I just checked the help, and it still says minimum score is 640 to borrow, though they might simply not have updated it yet.

[kenL]

Since there have been so few listings lately, it probably was a good idea to drop the HR's because too many of them would have funded. I think once they get the listing numbers up again, they might bring back the HR's.

It does look like the listing numbers are up now.

[Xenon481]

Nominating to The Lobby.

[TotoMMB]

Since there have been so few listings lately, it probably was a good idea to drop the HR's because too many of them would have funded. I think once they get the listing numbers up again, they might bring back the HR's.

It does look like the listing numbers are up now.

Is this all listings? Or are more just not fully funding? Also, today is "bonus" day, I imagine there will be a big spike.

Guess Prosper doesn't know what to do without a bunch of defaults...might as well bring the HRs back.

[kenL]

There was definitely a spike in listings today. A lot of repeat borrowers jumped in to take advantage of the promotion.

There still hasn't been a single expired listing since December, which kind of negates the value that lenders are supposed to add to the p2p lending game. Now, with the healthy amount of available listings hopefully not to many ridiculous HR's will get funded and lenders will be able to contribute their part to the selection process.

[JGuide]

Is it possible that default rates are better predicted by factors other than credit score?

Truth or Fiction? : From a Lenders perspective there is much more money to be made in HR folks that are willing to pay than in ‘good’ credit score folks that are not as likely to pay….

 

[TotoMMB]

Is it possible that default rates are better predicted by factors other than credit score?

Truth or Fiction? : From a Lenders perspective there is much more money to be made in HR folks that are willing to pay than in ‘good’ credit score folks that are not as likely to pay….

 

The problem is, what happens when things go south? The market is up (until today), housing hasn't re-crashed (until today), unemployment hasn't gone down. Not the brightest of outlooks, but what happens when things get worse? I'm willing to bet Prosper loans are one of the first things to go unpaid. Here, HR's are the most likely to crap out, even if they fully intended to pay loans back.

[divindj]

it just means Prosper needs to generate some high % rate loans so that their lying marketing wing can manipulate those numbers to claim impossible ROIs to future new investors suckers.  someone's gotta try and break muleshoes n pensioners loss-records and bringing back HRs is just the vehicle to do it =)

[Ray Kremer]

Is it possible that default rates are better predicted by factors other than credit score?

Sure, but credit scores remains the simplest and most universal measurable factor.

Truth or Fiction? : From a Lenders perspective there is much more money to be made in HR folks that are willing to pay than in ‘good’ credit score folks that are not as likely to pay….

Every borrower is willing to pay in theory, other than the ones that are deliberately ripping Prosper off because they know Prosper won't do anything to them. Good credit score folks are more likely to pay than HR folks, that's the issue. If we could accurately spot the good score people that will default and the HR people that will complete their payments through the end, well hell, why even bother with Prosper, that level of prognostication could be put to better use on the stock market or the state lottery, and banks would be beating down your door to learn your method too.

[JGuide]

... double post..

[JGuide]

If we could accurately spot the good score people that will default and the HR people that will complete their payments through the end...

http://www.ericscc.com/groups/lendersclub

3 years. 73 loans of mixed credit scores. 1x default.

[Ray Kremer]

3 years. 73 loans of mixed credit scores. 1x default.

Then you've answered your own question, for a relatively small sample set, anyway.

[kenL]

I'm doing pretty well with the (post-relaunch) HR's. 12 recently issued, 78 current and 10 paid off out of 100. Not a single late HR loan yet. ROI = 29.4%

http://www.lendstats.com/loansearch/loanfilter.php?pr1=HR&pr2=HR&sho1=1&lender=lendstats_com&type=lender