Print

[Urbi_et_Orbi]

This was one of the first pieces of Prosper-related videos early lenders were able to access.  This should give you an interesting overview of how we started - and you will probably be surprised how much things have changed.

http://www.youtube.com/v/KUza-c74z_4&

[cubbiesnextyr]

This was one of the first pieces of Prosper-related videos early lenders were able to access.  This should give you an interesting overview of how we started - and you will probably be surprised how much things have changed.

http://www.youtube.com/v/KUza-c74z_4&

Memories....

[Urbi_et_Orbi]

Prosper Karen's portfolio is still performing better than most (above 6%, per LS) - but she stopped lending a long time ago.

[treebird]

Highlights:

Default rates will be lower than Experian data because of the social aspect of groups.  (I never knew they really thought defaults would actually be lower, rather than much higher.)

A secondary market will be available by Jan. 07.

We'll be coming out with a group rating system.

A couple of people identified themselves at lenders (does anybody recognize audience members?) One of them asked for more credit data.

Lending to Katrina victims was apparently a big draw.

Applauded how great the lender community communication with each other and vetting was contributing to the process.

The danger of "blenders" was discussed (for newbies...thats borrowers who lend) but obviously the term had not yet been invented.

An astute lender tried to explain the problem with the platform that expects a borrower to feel the need to repay people who they never met and only know as a screen name.

Prosper Andrew correctly predicts that GLs who try get lots of borrowers to join their group for the purpose of growing a large group rather than being selective, will earn the disrespect of lenders.

And my very favorite....by Prosper Andrew...."We haven't had any defaults yet... if we have any..."

[Urbi_et_Orbi]

- State-of-the-art fraud detection
- Allowing borrowers to share as much info as they want
- Prosper looks at - and sometimes verifies - the listing narrative
- Prosprer using 3 of the strongest collections companies
- Relying on lenders and collective wisdom to screen loans and flag for fraud
- Nutty way to calculate ROI in relation to the Experian data
- Comparing secondary market to selling bonds

[Mtnchick]

Ah, back when we believed what we were told....I remember it well.

[LoanChimp]

I've run across this video before, but never sat thru it.

I am on a loan from the first borrower featured in the presentation:



mike966 reached "Late" Status last month. Luckily he caught up, but is now <15 days late...



http://www.prosper.com/lend/listing.aspx?listingID=21519

http://www.ericscc.com/listings/21519

[Xenon481]

:wub: Prosper Karen.

[zcommodore]

Highlights:

Default rates will be lower than Experian data because of the social aspect of groups.  (I never knew they really thought defaults would actually be lower, rather than much higher.)

For reference purposes... I came across some notes I took once of the Experian default rates recently that Prosper used to provide to lenders.  I don't know that they exist anywhere on Prosper's site anymore so I thought I'd post them here:

Grade	Range	Average
AA	0-0.5%	0.2%
A	0.5-1.3%	0.9%
B	1.3-2.5%	1.8%
C	2.5-4.5%	3.3%
D	4.5-8.2%	6.2%
E	8.2-10.8%	9.1%
HR	10.8-17.5%	13.9%

As you can see, even if HR's defaulted at the high end of the range (17.5%) lenders thought they might be able to make a little bit of money loaning at 29% rates.  I think Pensioner thought he would focus on D/E grade borrowers with only an 8-11% default rate and make a lot as well.  As we all know now, those rates were very optimistic.

[Oak_Hill_Fire]

Those rates may not be there anymore but they certainly were in August 2007 when I became active. I copied them and was using them for guidance when I started lending.

[zcommodore]

Those rates may not be there anymore but they certainly were in August 2007 when I became active. I copied them and was using them for guidance when I started lending.

I think they disappeared in late October when Prosper first came out with their "lender guidance".  That information was much closer to reality and you can see a significant change in default rates overall in Fred93's graphs starting in November.

[Penelope]

Thanks Urbi ...  funny BFP.

Ahhh, we were such children then ...