Ayn Rand Indecisive Liberal, Prosper Blog, and Other Prosper Changes | P2P Lending, Peer to Peer Lending, People to People Lending

Prosper CEO called Ayn Rand an indecisive liberal when compared to Prosper Lenders. In his blog post on money and merit, Chris Larsen uses The Cathedral and The Bazaar to make the argument that p2p lending is toppling cathedrals… I find the Ayn Rand assertion hilarious.

And Prosper has an official Blog. I have written a couple of guest posts for the blog. and so can you… The only difference is that you can get a T-Shirt (see the blog for details).

An interesting lending change. I hope it works. Higher starting rates would mean more loans to choose from for RateLadder.

We know that it is hard for borrowers to choose appropriate starting interest rates for their auctions. For example, the average rate for AA borrowers for loans between $1-5k is currently 7.81%. So a borrower might be tempted to start the bidding at 7.5 or 8.0%. The borrower who starts the bidding at 8% might get funded at 8%. But a borrower who starts the bidding at 10% or even 12% might get bid down to around 7%!

This release includes some changes that help borrowers choose a more appropriate (i.e., higher) starting interest rate, and should help them understand that setting a higher starting rate may result in a lower loan rate than they expected.

As of this release, borrowers will choose a category for their loans, from a list of seven options:

  • Debt consolidation
  • Home improvement
  • Business loan
  • Personal loan
  • Student loan
  • Auto loan
  • Other

Lenders will be able to search for listings by category, as well as being able to create standing orders that bid by category. This is a feature that lenders have requested for a long time, and we are happy to finally bring it to life. We hope that it helps your lending.

Some group changes that I find irrelevant.

And last but not least some API data changes… A new lender only file with extended credit and a loan performance history table. This is a welcome change!

There is now a new lender-only data file (you must be signed in as a lender to download it). It is a supplement to the public data file, and contains 2 additional objects: 1) the CreditProfile object which links members and listings with their credit data, including the extended credit; 2) the LoanPerformance object is a history of the ledger of a loan, including a row for every transaction that affects the loan’s balance.

There are now daily diff files on both the public and private data files. These xml export files contain the objects that have been added or changed since the last export with some overlap to ensure completeness, and therefore are significantly smaller than the entire data file. The rows of this export are appropriate for an upsert function.

Lastly, Prosper is sponsoring an open source project at SourceForge. The first major application of the project is called Prosper Data Manager (PDM). The PDM application is written in java and can therefore potentially works on any database on any platform.

Prosper API on SourceForge: http://sourceforge.net/projects/prosperapi/

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