September 23rd, 2008 — , Pictures That Make You Wanna Bid, Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
This pianist looks like treble…
“I am a good candidate for this loan because I just need a lilttle of extra money to make ends meet.”
“I am caught in a trap”
“we a sweltering.”
“I can show you proof of anything you’d like to see. ”
“If these loan don’t get funded i will have no choice but to turn to bank loan sharks! So
Related StoresSeptember 17th, 2008 — , Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
I just found out today that Prosper had a Screen Name Generator * (after seeing some rather strange borrower screen names on listings, such as “value-demon”). I have no idea how long this thing has been around, but it sure makes some interesting names.
*-must be logged out to see
So, lets have some fun!
Here are some good ones we’ve seen so far:
debtasaurus-rex
the-loot-emperor
September 15th, 2008 — , Pictures That Make You Wanna Bid, Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
“I am a server at red robin making $80-$140 night and I would like so dearly to make this web company become my future career.”
“Do you want to make money?” No, I want you to put some clothes on…
I didn’t realize it was possible to play twister without the mat…
“My Credit score is 660 as of last month before My identity was stolen.”
“I could ask my
Related StoresSeptember 8th, 2008 — , Pictures That Make You Wanna Bid, Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
“This past year I hit rock-bottom. “
“A major crash is inevitable and drawing near.”
“I was in a bad relationship with my 20 month olds father and he burned all of my belongings a little over a year ago while I was at work.” Except the bath tub and a little soap…
A nice group of attractive friends. What a wonderful memory this picture must bring. Except
Related StoresSeptember 5th, 2008 — , Prosper.com, WnF Index from LC @ LC's Warm n Fuzzy Prosper Blog
August 08 Warm n Fuzzy Index:
53% - 37/70
(Last month’s reading: 53%)
8/10 - Personal Performance: +1 from previous month. My ROI broke above 8% again (just barely)
6/10 - Peer Performance: No Change.
7/10 - Prosper Management: No Change. John Witchel, co-founder of Prosper left. I’m not sure if this is a big deal or not.
8/10 - Platform Improvement: +1 from previous month. (click here to
Related StoresSeptember 3rd, 2008 — , Defaults, Prosper.com, ROI, late from LC @ LC's Warm n Fuzzy Prosper Blog
It’s been a while since I went through the trouble to see how my Prosper portfolio is doing, so here it is.
I use Excel’s XIRR function and count all loans 1 month late or more as having $0 loan value, 17 loans.
XIRR (ROI) = 8.06%
Average Loan Age = 511 days
I was a little surprised that the ROI went up since the last time I calculated it. I’ve had a bunch of loans slip into the death zone
Related StoresContinue reading → Sept. Performance Update – LC’s Prosper ROI
September 2nd, 2008 — , Pictures That Make You Wanna Bid, Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
A crapper with cup holders? Now we’re talkin’! But it’s still missing a magazine rack, foot-rest, and pillow…
“My financial situation:is very stable I am a Poker dealer . I’ve been one for three years going on four. It’s a very lucrative business I been in the field since I graduated High School first starting out as a hostess. During my tenure I met a host of prominent
Related StoresAugust 19th, 2008 — , chimps from LC @ LC's Warm n Fuzzy Prosper Blog
Chimps 1
Humans 0
August 18th, 2008 — , Listing Quotes, Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
“I may have had no reponse from prosper in the past but I do believe in their television ads. I know that I beleive in this and that there is someone that will believe in me and give me a chance. ”
“Although I am technically un-employed (layed off in January), I do have unemployment money coming in to help me financially while I try to strat up this business. ”
“I do not have outstanding
Related StoresAugust 7th, 2008 — , Pictures That Make You Wanna Bid, Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
Description from Listing:
“Purpose of loanCash Flow- We need to increase our inventory for the winter season.
My financial situation:I am a good candidate for this loan because… I have never defaulted or been late for a loan. The business is already making money after only being open 7 months.
Monthly net income: $ 11,700.00″
Pretty girls help sell motorcycles. Will they help sell this listing?
July 25th, 2008 — , Pictures That Make You Wanna Bid, Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
Out comes the obligatory bikini pic after the first listing didn’t fund.
This photo follows Law #3 of the “Fundamental (and very unscientific) Laws of Borrower Photos for the Prosper Lender”.
Also in the second listing, this borrower is no longer looking for a $25,000 loan…
Related StoresJuly 15th, 2008 — , Defaults, Portfolio Plans, Prosper.com, ROI, Strategy from LC @ LC's Warm n Fuzzy Prosper Blog
I’ve been pretty harsh on Prosper’s Portfolio Plans (PP) since they were introduced in October 2007.
This last January I wrote, “While the introduction of Portfolio Plans was a great idea for the rookie lender, I just don’t think that they will perform as well as estimated.”
The good thing is that I was right. The bad thing is that I was, err… right. I must admit that I only looked at one PP
Related StoresJuly 15th, 2008 — , Pictures That Make You Wanna Bid from LC @ LC's Warm n Fuzzy Prosper Blog
“Single mom starting over”
Law 3 of the Fundamental (and very unscientific) Laws of Borrower Photos for the Prosper Lender applies to this picture.
Oh, Law 2 as well…
Related StoresJuly 14th, 2008 — , Pictures That Make You Wanna Bid from LC @ LC's Warm n Fuzzy Prosper Blog
Nothing shows your unbridled enthusiasm about your Prosper listing than a cell phone picture of yourself…in a mirror…with a thumbs up…in a men’s bathroom…
Related StoresJuly 14th, 2008 — , Pictures That Make You Wanna Bid from LC @ LC's Warm n Fuzzy Prosper Blog
Only a really good cold beer could make a guy that happy…
Related StoresJuly 14th, 2008 — , Pictures That Make You Wanna Bid from LC @ LC's Warm n Fuzzy Prosper Blog
What a stud…
Related StoresJuly 14th, 2008 — , Pictures That Make You Wanna Bid from LC @ LC's Warm n Fuzzy Prosper Blog
The occupation reads “Professional”, but the picture screams “Realtor”…
Related StoresJuly 14th, 2008 — , Pictures That Make You Wanna Bid from LC @ LC's Warm n Fuzzy Prosper Blog
This is the face made after realizing the phone sex operator is really a man.
Related StoresJuly 14th, 2008 — , Pictures That Make You Wanna Bid, Prosper.com, Strategy from LC @ LC's Warm n Fuzzy Prosper Blog
Prosper Borrowers are competing with each other for Lender’s hard earned money. Some stand out on their own because they have good credit and show up on saved searches or receive bids automatically from Portfolio Plans. However, those with less than stellar credit need a way to attract you to their listing and hopefully bid.
Some Borrowers use the title to get you to click on their listing.
Related StoresJune 18th, 2008 — , Defaults, Prosper.com, ROI, bankruptcy, late from LC @ LC's Warm n Fuzzy Prosper Blog
I just went through my account details, and using Excel’s xirr function determined that my Prosper Lending ROI stands at 7.88% at the moment.
I was a little surprised at the result, considering I’ve picked up more late borrowers since I last reported. Fortunately the ROI still manages to hover between 7.5% - 8.0%. It is also hovering between the two ROI estimates given by Eric and Lendingstats.
Related StoresJune 17th, 2008 — , Listing Quotes, Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
More selections from recent Prosper listings.
“I am a good candidate for this loan because… it’s a small loan and I’m using it for financial reasons.”
“I am a good candidate for this loan because I have a steady, long term job and I pay my bills I would just like to stop paying so much interest.”
“I am a good candidate for this loan because I am a very loving father and want the best
Related StoresJune 10th, 2008 — , Prosper.com, WnF Index from LC @ LC's Warm n Fuzzy Prosper Blog
May 08 Warm n Fuzzy Index:
57% - 40/70
(Last month’s reading: 61%)
8/10 - Personal Performance: No Change.
6/10 - Peer Performance: No Change.
7/10 - Prosper Management: No Change. Nothing going on.
8/10 - Platform Improvement: -2 this month. Not too much on the improvements side this month.
Back-end updates – Booorrring…
Institutional Lending interface – What happened to P2P lending?
2/
Related StoresJune 6th, 2008 — , Portfolio Plans, Prosper.com, ROI, Strategy from LC @ LC's Warm n Fuzzy Prosper Blog
Despite a record setting May 08, Prosper’s Conservative Portfolio Plan isn’t attracting much interest (pun).
It could be because the estimated return is only 5.10%.
There is a recent listing falling within the Conservative Plan. The interest rate offered on the listing is not high enough to attract PP bids from PP lenders that did not update their PP specifications and are still using the old
Related StoresJune 6th, 2008 — , Defaults, Portfolio Plans, Prosper.com, late, prospers.org from LC @ LC's Warm n Fuzzy Prosper Blog
If you follow Prosper stuff, you should have already heard by now that May 08 became Prosper’s largest month for loan originations. Over $9.5 million in loans originated last month, besting April 07, which was the previous high.
It took Prosper over a year to set a new originations record. Not exactly stellar (nor consistent) growth, but there’s more going on in the background. Let’s take a look
Related StoresJune 4th, 2008 — , Listing Quotes, Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
More samples from potential borrowers at Prosper.
“I am a good candidate for this loan because… im a hard worker and good citizen”
“The current negative accounts are all due to a discharged Chapter 7 Bankruptcy. They are showing negative but they were discharged over a year ago.”
“This loan will be used to… pay off credit cards that would provide me the opportunity to live more
Related StoresMay 29th, 2008 — , Listing Quotes, Prosper.com from LC @ LC's Warm n Fuzzy Prosper Blog
“I thought prosper was to help out in need and I am good for it.. Just give an chance, thats what life is taking an chance.”
“I cannot get a loan from any banks without haveing a job and I need the money right away if I can get it. ”
“I want to start a Cash Giftng Program, so I will be able to make some serious money $$$$”
“I am two months behind on my mortgage payments and I need this loan
Related StoresContinue reading → What Hopeful Prosper Borrowers are Saying
May 28th, 2008 — , Defaults, Prosper.com, bankruptcy, late from LC @ LC's Warm n Fuzzy Prosper Blog
*sigh*
Another loan tagged with a bankruptcy in my Prosper loan portfolio.
Just turned less than 15 days late too. 18 on-time payments.
What is it with some folks? Oh, right. Nevermind…
Related StoresMay 24th, 2008 — , chimps from LC @ LC's Warm n Fuzzy Prosper Blog
May 23rd, 2008 — , Misc from LC @ LC's Warm n Fuzzy Prosper Blog
But now it’s back to feeling like a regular, 9 year old car…
Related StoresMay 22nd, 2008 — , Defaults, Prosper.com, late from LC @ LC's Warm n Fuzzy Prosper Blog
To my surprise I noticed a second small collections payment from a 3 month late borrower within the month. This loan is two years old.
It looks like Prosper’s Collection Agency Amsher may have worked out some sort of payment plan with the borrower, about 1/4 of the monthly payment amount every two weeks. It won’t bring the loan current, but it will keep putting my money back in my pocket.
I
Related StoresContinue reading → Prosper Collection Agency Amsher Workin’ It
May 20th, 2008 — , Defaults, Prosper.com, late from LC @ LC's Warm n Fuzzy Prosper Blog
I had my fingers crossed. I saw a dagger on a 6 month late Prosper.com loan, meaning a payment (a rather large one) was attempted. It had a regular payment number (did not start with “OP”), so I could only assume this payment was initiated by the borrower.
This borrower has had an interesting history. First becoming 3 months late, and then catching up late last summer. Then only to go late again
Related StoresMay 9th, 2008 — , chimps from LC @ LC's Warm n Fuzzy Prosper Blog
May 8th, 2008 — , Defaults, Prosper.com, bankruptcy from LC @ LC's Warm n Fuzzy Prosper Blog
The automated Prosper message title said it all: “One of your loans defaulted due to bankruptcy”. Ugg.
I received two of these messages just recently. It’s not a surprise, since I’ve known that both of these borrowers had filed for bankruptcy. But defaults still suck.
Here’s a little about each of these:
Loan: Consolidation Loan (Listing 30873)
Borrower: SDL
Default date: Apr-30-2008
Continue reading → One of Your Loans Defaulted Due to Bankruptcy
May 6th, 2008 — , Prosper.com, WnF Index from LC @ LC's Warm n Fuzzy Prosper Blog
April 08 Warm n Fuzzy Index:
61% - 43/70
(Last month’s reading: 54%)
8/10 - Personal Performance: +1 this month. I’ve managed to claw my way back to just under 8% ROI when using Excel’s XIRR function.
6/10 - Peer Performance: No Change.
7/10 - Prosper Management: +1 this month. The recent change to use WebBank to originate Prosper loans so that rate caps and state restrictions could be
Related StoresMay 6th, 2008 — , Lending Presentation, Prosper Days 2008, Prosper.com, Strategy from LC @ LC's Warm n Fuzzy Prosper Blog
(part 18 of my Prosper Lending Presentation)
If you have followed along to at least this point, then it should be obvious to you that you need to set your own bidding rates to accommodate the risk you’re taking on with each Prosper loan. duh! Don’t chase a rate down too far just because you were outbid and have to be on the loan. There is always a point to let a loan go free without your bid.
Related StoresMay 6th, 2008 — , Lending Presentation, Portfolio Plans, Prosper Days 2008, Prosper.com, Strategy, bidding guidance from LC @ LC's Warm n Fuzzy Prosper Blog
(part 17 of my Prosper Lending Presentation)
As absolutely nifty as Prosper’s new Bidding Guidance and Portfolio Plans are, they just do not have the capability to capture the amount of detail that the manual bidder can.
Let’s consider the Borrower’s description. The way a borrower presents themselves can offer insight into their financial situation. A lot of borrowers these days include a
Related StoresMay 6th, 2008 — , Lending Presentation, Prosper Days 2008, Prosper.com, Strategy, bidding guidance from LC @ LC's Warm n Fuzzy Prosper Blog
(part 16 of my Prosper Lending Presentation)
Just because someone is an AA doesn’t mean they should get a 25k Prosper loan! Based on their income and DTI, they might only be considered an AA for a 1k loan.
Credit Grade is not the only thing the Prosper lender should be looking at. Actually, in my opinion, Credit Grade is quickly becoming a thing of the past.
When Prosper was first launched,
Related StoresMay 6th, 2008 — , Lending Presentation, Prosper Days 2008, Prosper.com, Strategy, bidding guidance from LC @ LC's Warm n Fuzzy Prosper Blog
(part 15 of my Prosper Lending Presentation)
One of the most important things one should consider when looking for listings on Prosper is to find borrowers that are requesting reasonable loan amounts within their capacity to pay you back.
Of course, the income claimed is self reported (although some are verified by Prosper), but that’s all we have, so we have to rely on it (with a healthy dose
Related StoresApril 28th, 2008 — , chimps from LC @ LC's Warm n Fuzzy Prosper Blog
“Ta-what?”
Related StoresApril 25th, 2008 — , Portfolio Plans, Prosper.com, Strategy, bidding guidance from LC @ LC's Warm n Fuzzy Prosper Blog
I’m watching you, Portfolio Plans.
After the latest revision, where the Conservative Portfolio Plan estimates a 5.10% return, I’m watching you.
Andrew was cool enough to post an update to the Prosper Official Blog Friday which outlines a new feature to Portfolio Plans (PP’s).
When an update is made to the Portfolio Plans, Prosper lenders using these Portfolio Plans are offered the
Related StoresApril 25th, 2008 — , Portfolio Plans, Prosper.com, ROI, Strategy from LC @ LC's Warm n Fuzzy Prosper Blog
Prosper’s Portfolio Plans changed dramatically last night.
I haven’t had the time to really get into these yet, but the minimum bid rates on some of these segments are ridiculously low.
Here is the Conservative Plan’s minimum bid rates: (criteria can be found on Prosper.com)
Slice 1:
Minimum bid rate: 5.90%
Estimated loss1: -0.22%
Adjustment2: 0.00%
Servicing fee: -1.00%
Estimated return3:
April 24th, 2008 — , Defaults, Prosper.com, ROI, late from LC @ LC's Warm n Fuzzy Prosper Blog
To my utmost surprise, my only “Late” loan made a payment (wahoo!), so at the moment I have no “Lates”. Of course there are plenty of loans one month late or worse, but without any “Late” loan statuses, I know that at least for 15 or so days there won’t be any more loans falling off the cliff into Collection Agency territory.
I went through and recalculated my Prosper ROI using Excel’s XIRR
Related StoresApril 23rd, 2008 — , Prosper.com, Strategy, bidding guidance from LC @ LC's Warm n Fuzzy Prosper Blog
In my last post, I looked at the differences in loss figures shown in the Bidding Guidance and the Performance Page from which these figures are based on. (here) Andrew from Prosper dropped in to explain what might be happening.
“Andrew from Prosper here. What you’re seeing is expected – on some of the credit grade segments, we manually adjust the default rate up or down. We do this in one of
Related StoresApril 22nd, 2008 — , Bugs, Prosper Days 2008, Prosper.com, bidding guidance from LC @ LC's Warm n Fuzzy Prosper Blog
Something strange is going on with Prosper’s Credit Segment default projections and the Bidding Guidance which utilizes them.
Prosper clearly defines that estimated losses are created from very specific data:
“Estimated average annualized loss rate based on the historical performance of Prosper loans for borrowers with similar characteristics, originated between Jun-01-2006 and Jan-31-2008,
Related StoresContinue reading → Discrepancies Between Bidding Guidance and Performance Page
April 18th, 2008 — , chimps from LC @ LC's Warm n Fuzzy Prosper Blog
April 17th, 2008 — , Prosper.com, ROI, Strategy, bidding guidance from LC @ LC's Warm n Fuzzy Prosper Blog
I’ve been perusing through the recently updated Bidding Guidance from Prosper (BG dated 4/14/08), and something jumped out at me.
The loan size ranges for each credit segment are all a bit, um, wonky. Maybe I should be a little more specific. The upper limit of the loan size ranges are wonky.
For example, the lowest loan size range for each credit grade is “less than $5,000” (or $0 - $4,999) ;
Related StoresApril 16th, 2008 — , Portfolio Plans, Prosper.com, Strategy, bidding guidance from LC @ LC's Warm n Fuzzy Prosper Blog
On Monday there was another major update to Prosper’s Bidding Guidance (BG). The most significant change is that the BG went from 67 to 103 credit segments. Wow!
Credit grades were sliced even further than before based on loan request size. Here is a summary:
(the following are for credit grades AA-D, non-autofund listings only)
AA – From 4 to now 8 segments:
Loan size segments were:
$0 -
April 15th, 2008 — , Lending Presentation from LC @ LC's Warm n Fuzzy Prosper Blog
After a much needed blogging break last week, I’m back.
At the moment, I’m in the middle of my PD08 Lending Presentation series, but I’m gonna have to put that on hold while I post about some other stuff.
Have no fear. To view all the presentation posts together, just view the tag “Lending Presentation”, or click here…
*enter chirping crickets*
Related StoresApril 15th, 2008 — , Prosper.com, WnF Index from LC @ LC's Warm n Fuzzy Prosper Blog
March 08 Warm n Fuzzy Index:
54% - 38/70
(Last months reading: 54%)
7/10 - Personal Performance: Remains unchanged. 7.5% ROI using Excel’s XIRR function counting all 1+ month late loans as $0
6/10 - Peer Performance: No Change.
6/10 - Prosper Management: No Change.
8/10 - Platform Improvement: No Changes.
2/10 - Listing Selection/Volume: Up one point. Back up to normal levels, about 2200-
Related StoresApril 7th, 2008 — , chimps from LC @ LC's Warm n Fuzzy Prosper Blog
“Show me the monkey!”
Related StoresApril 5th, 2008 — , Lending Presentation, Portfolio Plans, Prosper Days 2008, Prosper.com, ROI, Strategy from LC @ LC's Warm n Fuzzy Prosper Blog
Quick Chimp Tip for the New Lender # 12
(part 14 of my Prosper Lending Presentation)
Diving head first into Prosper Lending without doing your own due diligence is like cliff diving without checking out the water below first. Prosper is, after all, only two years old. The data is young. The data is thin.
Relying on a numbers only approach could be dangerous if you don’t know what you’re doing
Related StoresApril 4th, 2008 — , Lending Presentation, Prosper Days 2008, Prosper.com, Strategy, late from LC @ LC's Warm n Fuzzy Prosper Blog
Quick Chimp Tip for the New Lender # 11
(part 13 of my Prosper Lending Presentation)
Instead of getting upset over late loans, the best thing you can do is analyze the late loan and learn how to avoid similar loans in the future.
Sure, you can always go to Eric’s cool website to look up late loans and learn from those, but when you’re on a loan that goes late and have real money at stake, the
Related StoresApril 4th, 2008 — , Lending Presentation, Prosper Days 2008, Prosper.com, late from LC @ LC's Warm n Fuzzy Prosper Blog
Quick Chimp Tip for the New Lender # 10
(part 12 of my Prosper Lending Presentation)
Instead of getting upset over late loans, just sit back, take a deep breath, and relax.
Remember, there isn’t anything you can do about it anyway. Don’t let a late loan spoil your day…
April 3rd, 2008 — , Defaults, Lending Presentation, Prosper Days 2008, Prosper.com, late from LC @ LC's Warm n Fuzzy Prosper Blog
Quick Chimp Tip for the New Lender # 9
(part 11 of my Prosper Lending Presentation)
When your loans start going late, don’t get mad. There’s really not much you can do about it anyway.
You could yell and scream like the loan chimp you are, but that doesn’t result in anything but a broken monitor and high blood pressure…
Related StoresApril 2nd, 2008 — , Defaults, Lending Presentation, Portfolio Plans, Prosper Days 2008, Strategy, late from LC @ LC's Warm n Fuzzy Prosper Blog
Quick Chimp Tip for the New Lender # 8
(part 10 of my Prosper Lending Presentation)
So you’re relatively new to Prosper and have been happily bidding away. You’ve been careful about the loans you’ve selected, and you’re quietly cheering on each one of your borrowers; like that nice family with the cute baby, the pretty girl that is about to graduate from college, and that guy that wants to
Related StoresApril 1st, 2008 — , Lending Presentation, Prosper Days 2008, Prosper.com, Strategy from LC @ LC's Warm n Fuzzy Prosper Blog
(part 9 of my Prosper Lending Presentation)
#6 – Ask Questions…
Many times, there are some holes in the information we receive about a listing. Sometimes, what the borrower states in the Listing Description isn’t entirely clear and needs clarification. Also, while we’re given quite a bit of credit detail about the borrower, it’s still not a full blown credit report. Sometimes the numbers just
Related StoresContinue reading → Quick Chimp Tip for the New Lender – 6 & 7
March 31st, 2008 —