Proser Statistics

 

Interesting New Study Published About Prosper Returns

June 14th, 2008 — , Proser Statistics, lending  from ProsperBlogger @ Peer to Peer Lending with Prosper

Prosper has done a lot of work to make data transparent. Increasingly economists and credit analysts have started to study the Prosper model.
Economists Ginger Zhe Jin and Seth Freedman of the University of Maryland have just published a study looking at Prosper since inception to determine average…

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When Judging a Loan, Homeownership Only Seems to Matter for HR Grade Loans

January 11th, 2008 — Proser Statistics, Prosper Tips, lending  from ProsperBlogger @ Peer to Peer Lending with Prosper

When judging a loan within Prosper.com, I’d always assumed that homeownership was always a good thing when it came to the potential for default. Well, interestingly, it turns out that the only credit grade in which default rates increase is HR (High Risk).

I looked at Prosper’s performance data for all loans, all income ranges, and credit histories to see if there was any conclusive evidence of whether homeownership really mattered. My criteria for analyzing performance data was exactly the same, except that one set was for homeowners and the other was for non-homeowners. Statistically, default rates were virtually identical except for HR credit grades where there is almost a 7% difference in the default rates. Interesting information, and news to me.

Even at the D and E credit grades, there was no statistical difference between the default rates of homeowners and non-homeowners.
So, when considering an HR loan, homeownership is definitely something to look for, at other credit grades it does not really seem to matter.
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Are Delinquencies More Likely for a Specific Region or State in the US?

January 9th, 2008 — Proser Statistics  from ProsperBlogger @ Peer to Peer Lending with Prosper

On the Prosper.com forums there is a debate as to whether some states or regions tend to be more delinquent than others. Borrowing some statistics from LendingStats.com, it turns out there are some small differences in rates of delinquency by region.

When I divided lending statistics by region, the southern United States had a slightly higher default rate than other regions, the east had the lowest rate of default:

As far as individual states go with more than 50 loans, Maine, Nebraska, Wisconsin, Ohio, Virginia, Connecticut, and Indiana had the best (Maine having the best) repayment rates and these states tend to be from the Midwest and East. All of these were below 7%.

Some states (with more than 50 loans) which had especially problematic delinquent rates are New Mexico, New Hampshire, Texas, Alabama, Idaho, Georgia, California, and Missouri (in that order). New Mexico, New Hampshire, Texas and Alabama’s delinquent rates were all above 20%, a truly terrible rate of delinquency.

You can view the entire list at LendingStats.com here.

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