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Author Topic: How Prosper Works  (Read 24869 times)

112233

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How Prosper Works
« on: December 28, 2007, 01:00:41 am »

just follow the arrows

http://www.prosper.com/prm/lender2.htm
http://www.prosper.com/prm/lender3.htm

now, is anyone surpised by the MNH reports?
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caliostro

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Re: How Prosper Works
« Reply #1 on: December 28, 2007, 01:20:08 am »

Is that Garry Kasparov looking at the laptop?
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msava

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Re: How Prosper Works
« Reply #2 on: December 28, 2007, 06:43:18 am »

Prosper publishes those returns like they are the norm.  The reality is only a very few smart, conservative lenders are getting those returns. 

 
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ira01

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Re: How Prosper Works
« Reply #3 on: December 28, 2007, 12:47:19 pm »

just follow the arrows

http://www.prosper.com/prm/lender2.htm
http://www.prosper.com/prm/lender3.htm

now, is anyone surpised by the MNH reports?

As I noted in this thread, Prosper's claims are not even truthful, even aside from the misleading aspects of using "average" in the ads, and of having big returns in huge numbers and a tiny footnote cherry-picking a small subset of loans.  I hope that someone who falls for these ads sues the hell out of prosper for false advertising.  It isn't like we haven't warned Prosper about its misleading advertisements many times in the past.
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Xenon481

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Re: How Prosper Works
« Reply #4 on: December 28, 2007, 12:50:39 pm »

I'm not sure that somebody would have to fall for those tactics to be able to claim damages.  Any lender who has loans that fit into any of those categories and/or any Prosper pre-made category should be able to claim damages via lower interest rates due to more lender competition for said loans.

112233

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Re: How Prosper Works
« Reply #5 on: December 28, 2007, 12:53:22 pm »

im making fun of the arrows. they cant make up their mind which way they should go. look at the difference between the 2 ads. I noticed this a while ago, but I thought maybe they would have fixed it by now.
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LoanChimp

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Re: How Prosper Works
« Reply #6 on: December 28, 2007, 10:53:52 pm »

shouldn't both arrows point to the borrower?  :-\
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SGriff

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Re: How Prosper Works
« Reply #7 on: December 28, 2007, 11:32:41 pm »

Irony.

Prosper compares itself to a CD, a single MM account (E-Trade) - when other MM accounts are paying far better, and an interest checking account (Wells-Fargo) when other interest checking accounts are paying far better as well.

Meanwhile...

Even the #10 real estate fund is performing close to the raw number Prosper is passing out - http://www.mutualdecision.com/mutual_fund/top_ten_funds/fund/42

and if you look at pure stock funds, based on their 3-year RoR, since you're locked in at Prosper for 3 years, you get...

http://www.mutualdecision.com/mutual_fund/top_ten_funds/fund/6

any of which absolutely crush Prospers RoI....
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Re: How Prosper Works
« Reply #8 on: December 29, 2007, 12:01:06 am »

9.49%[1]


[1] Rate of return shown is the average annual return on Prosper loans originated between 7/1/06 and 10/30/07 to borrowers with AA - C credit grades who requested automatic funding, have 0 - 1 current delinquencies and 0 inquiries in the last 6 months on their credit record, as of 11/30/07.

.
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traveler505

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Re: How Prosper Works
« Reply #9 on: December 29, 2007, 12:08:41 am »

9.49%[1]


[1] Rate of return shown is the average annual return on Prosper loans originated between 7/1/06 and 10/30/07 to borrowers with AA - C credit grades who requested automatic funding, have 0 - 1 current delinquencies and 0 inquiries in the last 6 months on their credit record, as of 11/30/07.

.

There are currently 8 listings meeting those criteria.

None of them look like they will fund.
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ira01

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Re: How Prosper Works
« Reply #10 on: December 29, 2007, 01:13:40 am »

9.49%[1]


[1] Rate of return shown is the average annual return on Prosper loans originated between 7/1/06 and 10/30/07 to borrowers with AA - C credit grades who requested automatic funding, have 0 - 1 current delinquencies and 0 inquiries in the last 6 months on their credit record, as of 11/30/07.

As I noted here, aside from all the other problems with this ad, it isn't even true -- The 9.49% is really 9.25% for Prosper's cherry-picked collection.  And there are only 71 loans in that bucket (which is for AA's). 
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cowdog

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Re: How Prosper Works
« Reply #11 on: December 29, 2007, 01:25:11 am »

As I noted here, aside from all the other problems with this ad, it isn't even true -- The 9.49% is really 9.25% for Prosper's cherry-picked collection.  And there are only 71 loans in that bucket (which is for AA's). 

But... It's Simple, Safe & Secure.

 ;D
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Mercurio

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Re: How Prosper Works
« Reply #12 on: December 29, 2007, 02:44:39 am »

9.49%[1]


[1] Rate of return shown is the average annual return on Prosper loans originated between 7/1/06 and 10/30/07 to borrowers with AA - C credit grades who requested automatic funding, have 0 - 1 current delinquencies and 0 inquiries in the last 6 months on their credit record, as of 11/30/07.

.

There are currently 8 listings meeting those criteria.

None of them look like they will fund.
That saves me a little research.   I had looked once at the "portfolio plans" and then checked out the listings.  I noticed one class within the top tier portfolio plan had very few listings that met the requirements.  I wondered if those would begin funding quickly when the rare bird showed up that met the requirements to trigger that standing order.   

Remember, the plan  is restricted so that of the four types of standing orders, none can be over 40% of the total portfolio.   This means that if enough people used these plans, it would favor some listings just to fulfill the requirements of the plan.   If very few listings met the criteria, the portfolio's standing orders should go bananas if a listing popped up that met it.   The listings that occur most frequently would be harder to fund since the portfolio plan may already have its 40% of them. 

So the fact that this standing order within a portfolio plan has 8 listings that meet its requirements but are lacking bids is highly informative.  It means very few people are using the much vaunted portfolio plans.  Those 8 listings should have fully funded by now since so few listings meet the criteria. 

This tells me the experiment with the portfolio plans has been a dud so far. 



 
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bamalucky

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Re: How Prosper Works
« Reply #13 on: December 29, 2007, 09:07:09 am »

Using 10-1 cutoff is very misleading.Prosper's own suggestion on the performance tab is to use a cutoff date of at least 4 months old so the loans have a little seasoning on them.
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traveler505

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Re: How Prosper Works
« Reply #14 on: December 29, 2007, 09:39:27 am »

In fairness, one explanation for the fact that there are only 8 listings meeting Prosper's standards, none of which will fund, is that the fundable listings which met Prosper's criteria were immediately funded by standing orders/portfolio plans.

However, when I checked the Performance Page, during the month of December, only 26 loans meeting Prosper's standards were originated. 
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