May 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 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 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 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 — , Prosper upgrade, bidding guidance, portfolios from Mike @ Prosperous Land Blog
In addition to the large changes announced yesterday, Prosper swept a few changes in more quietly. Specifically, they tweaked with their portfolio slices and drastically increased the number of bins used for lender bidding guidance.
First, the portfol…
Related StoresContinue reading → Prosper Changes Bidding Guidance & Portfolios Too
April 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 -
March 18th, 2008 — , bidding guidance from Mike @ Prosperous Land
With the Fed dropping interest rates like they’re going out of style, it’s an appropriate time to discuss what average annual return to expect from Prosper. The easiest way to look at it is to say “I’d like to get 10%”. Unfortunately for us individuals…
Related StoresFebruary 1st, 2008 — Lenders, Statistics, bidding guidance, portfolios from Mike @ Prosperous Land
LoanChimp has taken to writing about Prosper’s statistics behind the portfolios and lender bidding guidance. They’re good reads and worth understanding if you’re interested in more than push-button lending. This is not to say that Prosper’s advances he…
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