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[bamalucky]

“Most loans are very serious transactions; lenders need to be licensed and loan brokers need to be registered,” Lund said. “Is there a security associated with the [Prosper.com] loans? My concerns would be as much for the investors as for the borrower.”

http://blog.kennebunkpost.com/2008/08/21/people-to-people-lending--can-it-make-dreams-come-true-aug-22-2008.aspx

[bamalucky]

Lendingclub.com has a third- party servicer that would administer the loans if it went out of business. Prosper.com says it's looking for one.

[/b]http://www.bloomberg.com/apps/news?pid=20601039&sid=a7LI2Jh3XdHM&refer=home

[ira01]

Lendingclub.com has a third- party servicer that would administer the loans if it went out of business. Prosper.com says it's looking for one.

[/b]http://www.bloomberg.com/apps/news?pid=20601039&sid=a7LI2Jh3XdHM&refer=home

Hmmm, so much for the speculation that WebBank would simply take over servicing.    I guess we'll find out how the 3-man shadow Prosper or however it was described in Prosper's SEC registration put it works out.

[Urbi_et_Orbi]

Lendingclub.com has a third- party servicer that would administer the loans if it went out of business. Prosper.com says it's looking for one.

[/b]http://www.bloomberg.com/apps/news?pid=20601039&sid=a7LI2Jh3XdHM&refer=home

I guess this means that Prosper now considers this scenario sufficiently feasible as to warrant some attention.

Nominate for lobby.

[nonattender]

C'mon Urbi...

When they didn't have one, you complained they weren't prepared for the possibility.
When they look for one, you complain that it must mean they're about to go under.
When they find one, you'll probably find some reason to complain about that, too.

I liked you better when you were bribing them with cookies - and getting results.
Of course, being responsive to cookie bribes is clearly an indication of evil intent.

-t

[bamalucky]

Nominate for lobby.

Fine with me..

[dliebs97]

I think they got it right with this line


'lenders donate money to the cause – a $50 minimum'

[Cushie]

I thought Prosper said they had a third party servicer from the start?

[NewHorizon]

I thought Prosper said they had a third party servicer from the start?

Now:
http://www.prosper.com/help/topics/start-faq.aspx

What if Prosper were to go out of business?

First, no new loans would be created. All lender funds not actively associated with a loan would be returned to the individual lenders immediately, and all existing loans will be serviced to completion by a third party loan servicing agent.

Borrowers are still legally obligated to make payments on their loan. Prosper's existence (or lack thereof) does not change that obligation, and failure to meet those obligations would result in the same consequences for the borrower.

April 2007:
http://web.archive.org/web/20070418163946/http://prosper.com/help/topics/start-faq.aspx

What if Prosper were to go out of business?

In short, no new loans would be created, all lender funds not actively associated with a loan would be returned to the individual lenders immediately, and all existing loans will be serviced to completion by a third party loan servicing agent.

If Prosper were to go out of business, the third party loan servicing agent would take over the administrative responsibilities such as the transfer of monthly loan payments, providing timely payment notices, monthly lender statements and required tax documentation, overseeing the collection of delinquent loans on behalf of the lender, and reporting payment performance to credit bureaus.

Borrowers of course are still obligated to make payments on their loan. Prosper's existence (or lack thereof) does not change that obligation legally or otherwise, and failure to meet those obligations would result in the same consequences for the borrower.

I guess if you parse this real closely, it doesn't actually say the 3rd party servicing agent has yet been selected...?  (Altho' that's how I read it when I first joined Prosper.)

And as for the removal of the second paragraph, maybe Prosper decided that it's best not to commit that 3rd party loan servicing agent to anything via the FAQ.

[bamalucky]

Maybe the 3rd party servicer has quit or BK.

[NewHorizon]

Maybe the 3rd party servicer has quit or BK.

They didn't want to just ask for a $25K bridge loan on Prosper instead...?   

[bamalucky]

Maybe the 3rd party servicer has quit or BK.

They didn't want to just ask for a $25K bridge loan on Prosper instead...?   

Maybe they did 

[phreddy148]

Apparantly the moderator on the Prosper official forums does not want anyone to know that Prosper is looking for a third party loan service.  They wouldn't let my post though.

[Urbi_et_Orbi]

C'mon Urbi...

When they didn't have one, you complained they weren't prepared for the possibility.

When did I complain about them not having a plan for servicing loans post-failure?  Prosper has, from the very begining claimed to have a plan.

[bamalucky]

The actual business plan