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[Urbi_et_Orbi]

If the alleged borrowers did not, in fact, request the loan - and did not sign, then they would be claiming ID-theft, no?

[ira01]

If the lawsuits are discharged due to the borrower not signing,them Prosper has to pay the lenders back..

That's pretty simple! 

Actually, this is 100% correct.  Paragraph 7 of the LRA provides:

7. Representations and Warranties as to Notes Sold. Prosper makes the following representations and warranties to you that, with respect to each Note sold to you under this Agreement, as of the date the Note is sold, assigned and transferred to you:

* * *
c. Prosper has made commercially reasonable efforts to authenticate and verify the identity of the borrower on the loan evidenced by the Note. Based on such authentication and verification, to the best of Prosper's knowledge: (i) the borrower had full legal capacity to execute and deliver the Note, and (ii) each Note sold to you by Prosper is the legal, valid and binding obligation of the borrower, and is enforceable in accordance with its terms.

Thus, if Prosper's Prommissory Notes and/or procedures are defective, such that a Note is not the "legal, valid and binding obligation of the borrower, and is enforceable in accordance with its terms," Prosper has breached this warranty.  And Paragraph 8 of the LRA specifies the remedy for such a breach:

In the event of a breach by Prosper of any of the foregoing representations and warranties that materially and adversely affects your interest in a Note sold to you under this Agreement, Prosper shall either (i) cure the defect in the Note, if the defect is susceptible to cure, (ii) repurchase the Note from you, . . . .  In the event Prosper repurchases a Note, Prosper will pay you a repurchase price equal to the outstanding principal balance of the Note as of the date of repurchase, plus any accrued but unpaid interest on the principal balance as of the date of repurchase at interest rate set forth in the Promissory Note."

If Prosper's Prommissory Notes prove defective, that would be the best thing that ever happened to lenders -- Prosper would have to repurchase all the defaulted/late loans, at full value including accrued interest!

[NewHorizon]

Lots of posts with lots of words.  No lawsuits.  Pfft.
 

[cubbiesnextyr]

If the lawsuits are discharged due to the borrower not signing,them Prosper has to pay the lenders back..

That's pretty simple! 

Actually, this is 100% correct.  Paragraph 7 of the LRA provides:

7. Representations and Warranties as to Notes Sold. Prosper makes the following representations and warranties to you that, with respect to each Note sold to you under this Agreement, as of the date the Note is sold, assigned and transferred to you:

* * *
c. Prosper has made commercially reasonable efforts to authenticate and verify the identity of the borrower on the loan evidenced by the Note. Based on such authentication and verification, to the best of Prosper's knowledge: (i) the borrower had full legal capacity to execute and deliver the Note, and (ii) each Note sold to you by Prosper is the legal, valid and binding obligation of the borrower, and is enforceable in accordance with its terms.

Thus, if Prosper's Prommissory Notes and/or procedures are defective, such that a Note is not the "legal, valid and binding obligation of the borrower, and is enforceable in accordance with its terms," Prosper has breached this warranty.  And Paragraph 8 of the LRA specifies the remedy for such a breach:

In the event of a breach by Prosper of any of the foregoing representations and warranties that materially and adversely affects your interest in a Note sold to you under this Agreement, Prosper shall either (i) cure the defect in the Note, if the defect is susceptible to cure, (ii) repurchase the Note from you, . . . .  In the event Prosper repurchases a Note, Prosper will pay you a repurchase price equal to the outstanding principal balance of the Note as of the date of repurchase, plus any accrued but unpaid interest on the principal balance as of the date of repurchase at interest rate set forth in the Promissory Note."

If Prosper's Prommissory Notes prove defective, that would be the best thing that ever happened to lenders -- Prosper would have to repurchase all the defaulted/late loans, at full value including accrued interest!

What about all the loans that have already been sold off?

[ira01]

If the lawsuits are discharged due to the borrower not signing,them Prosper has to pay the lenders back..

That's pretty simple! 

Actually, this is 100% correct.  Paragraph 7 of the LRA provides:

7. Representations and Warranties as to Notes Sold. Prosper makes the following representations and warranties to you that, with respect to each Note sold to you under this Agreement, as of the date the Note is sold, assigned and transferred to you:

* * *
c. Prosper has made commercially reasonable efforts to authenticate and verify the identity of the borrower on the loan evidenced by the Note. Based on such authentication and verification, to the best of Prosper's knowledge: (i) the borrower had full legal capacity to execute and deliver the Note, and (ii) each Note sold to you by Prosper is the legal, valid and binding obligation of the borrower, and is enforceable in accordance with its terms.

Thus, if Prosper's Prommissory Notes and/or procedures are defective, such that a Note is not the "legal, valid and binding obligation of the borrower, and is enforceable in accordance with its terms," Prosper has breached this warranty.  And Paragraph 8 of the LRA specifies the remedy for such a breach:

In the event of a breach by Prosper of any of the foregoing representations and warranties that materially and adversely affects your interest in a Note sold to you under this Agreement, Prosper shall either (i) cure the defect in the Note, if the defect is susceptible to cure, (ii) repurchase the Note from you, . . . .  In the event Prosper repurchases a Note, Prosper will pay you a repurchase price equal to the outstanding principal balance of the Note as of the date of repurchase, plus any accrued but unpaid interest on the principal balance as of the date of repurchase at interest rate set forth in the Promissory Note."

If Prosper's Prommissory Notes prove defective, that would be the best thing that ever happened to lenders -- Prosper would have to repurchase all the defaulted/late loans, at full value including accrued interest!

What about all the loans that have already been sold off?

I guess that would depend on whether the lenders were "materially and adversely" effected by Prosper's breach.  In most cases, presumably, the borrower did not assert any irregularity in the Note as the reason for nonpayment -- they just didn't have the money.  I doubt Prosper would have to repurchase those.

[xraider]

I wonder if this is related to one of the "unacceptable" jdb conditions?

[Urbi_et_Orbi]

If a Chapter 7 BK shows as already having been discharged - with the balance "extinguished," why is it still sitting in my 4+ Late bucket?

[bamalucky]

If a Chapter 7 BK shows as already having been discharged - with the balance "extinguished," why is it still sitting in my 4+ Late bucket?

Ask nonattender. He's on the PMI defense team.

[NewHorizon]

Looks like instant transfers are scaled back..?

Old:

When a transfer to Prosper meets certain requirements, funds are made available in a lender's Prosper account instantly, with no delay.

...as still seen at http://www.prosper.com/help/topics/lender-transfer_funds.aspx

New:

All transfers of $500 or more initiated by 3:00PM PST will be approved for same day bidding on Monday's and Wednesday's.

Quoting the June 2008 Lender Newsletter I received via Email over night last night.

OK, well, in the blog comments, RL says this is old news after all.
But given LoanChimp's ability to do an instant transfer today, I remain confused about the announcment - no matter how old it is.  Ah well....

[Urbi_et_Orbi]

Perhaps Neo-Gulp could use his back-channels?

[bamalucky]

Now the blog editor has posted 1 comment that tells all the borrowers how to get out of paying.

[bamalucky]

If my notes are unsigned,then i want them all bought back.Even the current ones.

[xraider]

If my notes are unsigned,then i want them all bought back.Even the current ones.

+1

[Xenon481]

If my notes are unsigned,then i want them all bought back.Even the current ones.

+1,000,000

[AmexFan]

Hmm . . . isn't there a postcard that goes out physically as a part of verification?

Why then couldn't a postcard be sent out for the loan referencing the terms, requiring a handwritten signature on it, and returned?

Hindsight is 20/20, I know, but . . .