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[traveler505]

Would one of the Prosper employees who read this forum religiously be kind enough to clarify the following language from the second loan guidelines:

Monthly payments made in advance do not count towards your consecutive months of on-time payments. A payment must be more than 15 days past due to be considered late as it applies to obtaining a second loan.

http://www.prosper.com/help/topics/borrower-second_loan.aspx

Does this really mean what it says?  HR borrowers who are late on every payment for 12 straight months (but not more than 14 days late) are allowed to request a second loan, but AA borrowers who make all of their payments a couple weeks before the due date are not?

[zcommodore]

Are they saying that you can't get a loan, immediately make 12 payments, and then expect to be able to get another loan?

[112233]

uh oh .. I see trav has changed his clothes .. I clearly can see the MNH on his chest

[Mtnchick]

The brilliant P-----r legal contract writers strike again.

[traveler505]

Are they saying that you can't get a loan, immediately make 12 payments, and then expect to be able to get another loan?

For each credit grade, the second loan criteria include both a minimum number of months since the first loan originated, and a minimum number of consecutive on-time payments.  So a borrower who immediately made 12 payments (6 or 9 for higher credit grades) would still have to wait 12 (or 6 or 9) months before requesting a second loan, even in the absence of the "early payments don't count" footnote.

[112233]

don't worry though .. they are taking a hard line by not allowing any drops in credit grade for HRs

[Loan_shark_74]

don't worry though .. they are taking a hard line by not allowing any drops in credit grade for HRs

LOL. What are you if you drop from an HR? 

[NewHorizon]

Would one of the Prosper employees who read this forum religiously be kind enough to clarify the following language from the second loan guidelines:

Good luck with that.

To my knowledge, nobody from Prosper has replied directly to any post in any forum for over a month.

Fostering the sense of community isn't on their agenda these days.

[112233]

don't worry though .. they are taking a hard line by not allowing any drops in credit grade for HRs

LOL. What are you if you drop from an HR? 

exactly .. in fact, in some cases and HR will be allowed to get a loan where an AA dropping to a B would not. I wonder if there are any statistics behind this to support this reasoning

[Urbi_et_Orbi]

Why would anyone even consider bidding on a second loan for a person who has had ANY level of delinquency (especially to the point of triggering action by the collection agency) at any point during their participation on the Prosper platform?  Why is 12 any more magical than 6?  IMO, the moment a borrower is subject to collection, they should no longer be allowed to borrow on Prosper.  For purposes of participation, borrowers should be treated like we treat defaulted borrowers.  Judging by the cure-rates on late loans, I am not sure I see much of a difference.

Also, until Prosper can get their crap together, they should cut off HR borrowers.  Once DoFu has demonstrated Prosper's ability to pursue and recover at an acceptable level, then we can re-consider whether or not HR borrowers have a place on Prosper.

Based on how things went the first year on Prosper, allowing loans to fund above 30% is just asking for trouble.  

[Loan_shark_74]

don't worry though .. they are taking a hard line by not allowing any drops in credit grade for HRs

LOL. What are you if you drop from an HR? 

exactly .. in fact, in some cases and HR will be allowed to get a loan where an AA dropping to a B would not. I wonder if there are any statistics behind this to support this reasoning

I would rather loan to an AA dropped to an A, than an E dropped to an HR. They should not allow HR's to obtain a second loan. After 12 payments, An HR should have improved his/her credit.

[NewHorizon]

Monthly payments made in advance do not count towards your consecutive months of on-time payments. A payment must be more than 15 days past due to be considered late as it applies to obtaining a second loan.

I'm thinkin' they mean to say that if you're an HR, for example, who's made 11 on-time payments, making your 12th payment early does *not* allow you to go for a 2nd loan at the time of that early payment.  But then it also sounds like you need to wait for 15 days after the 12th payment is due/paid before going for a 2nd loan - which seem unnecessarily complicated to me...

[112233]

don't worry though .. they are taking a hard line by not allowing any drops in credit grade for HRs

LOL. What are you if you drop from an HR? 

exactly .. in fact, in some cases and HR will be allowed to get a loan where an AA dropping to a B would not. I wonder if there are any statistics behind this to support this reasoning

I would rather loan to an AA dropped to an A, than an E dropped to an HR. They should not allow HR's to obtain a second loan. After 12 payments, An HR should have improved his/her credit.

good idea .. prosper should change the text for D/E/HR from "Drop in credit grade allowed" to "credit grade improvement required"

[Loan_shark_74]

The brilliant P-----r legal contract writers strike again.

It seems they take pleasure in confusion.