another random thought
1) underwriter does not approve borrower at a brick and mortar lending institution (look at the crisis in the financial market and the tightening of approval criteria)
2) they say hey, let's try prosper. if it funds, they split the profit with prosper or mark up the fees to the borrower.
result: we get to bid on the crap that wouldnt be approved otherwise and we dont have the advantage of reviewing the borrower's complete credit report.
again, just a thought. no proof. im just trying to understand why a listing would be automatically created