Mtnchick reported getting back her principal (no interest) on this loan:
http://www.ericscc.com/listings/12808in this thread on the old forums on 2/6/07:
http://www.prosperreport.com/prosper/forums/archive/threads/1/8/4/18429.1.htmThese 10 all have in common that the loan went bad right from the start, with the loan making no payments right from the start, or at most 1.
If you think Prosper is doing a crummy job on its Guarantee, then go find out how many May 2006 loans did not make their first payment but Defaulted and were not Repurchased.
If Prosper bought back 10 out of 10, that's pretty good. If they only repurchased 10 out of 20, then the Guarantee has no teeth. If it's 10/10 in May 2006, has that ratio stayed the same or dipped as time goes on?
I only looked at the first week in May 2006, but Prosper seems to have bought back all the bad-from-the-start loans from that week.
Even if Prosper has been doing a spectacular job on the Guarantee, how long can it continue? What is their cash position? How much is in the Prosper budget for Repurchases under the Guarantee, and what the the actual expenditures for 2007 and projected for 2008? Anyone seen a balance sheet?