So...now Doug Fuller and PMI are making investment decisions on behalf of their customers without prior consultation/consent? It would appear so, since they are making the decision on whether to sell or hold in an attempt to maximize ROI, which could quite possibly backfire...damaging both PMI and lenders in the process.
PMI is to provide the platform in which lenders make transactions...and to put in place the process that these debt sales are taken care of. There should be no ambiguity or "timing" involved.
I believe PMI has crossed a dangerous line with this move, because this now sounds an awful lot like a mutual fund. In a MF, the fund manager decides whether or not to sell or hold an underperformer. The difference, of course, is that mutual funds are governed by SEC regulations which mandate a certain level of transparity and truth-in-advertising. Prosper won't play by those rules...so they should not be trying to play that game!