Tonight we made a number of significant changes to the site, many based on your feedback. Changes include…
Improved bidding guidance for lenders
As the Prosper portfolio has grown and matured, we finally have a volume of loan payment activity that has allowed us to replace the Experian historical default data with Prosper’s own estimated default data.
We have also performed some analysis on the differences between borrowers within the same credit grade, and segmented the borrower population into 54 unique segments (one segment, for example, is C-grade borrowers with no automatic funding, 0 now delinquent accounts, and 2 or more inquiries). Based on which segment the borrower belongs to, we will display the estimated loss (due to default), rate adjustment (uncollected interest and fees), and annual servicing fee, and come up with an estimated return for loans to borrowers of that type.
Here’s an example of the new bid input for the example borrower:
Search listings now >
Portfolio plans introduced
Along with the new bidding guidance format (where return is calculated from actual Prosper performance), we are happy to introduce a new feature called “Portfolio Plans”. Portfolio plans are currently 4 model plans which you can think of as bundled standing orders. Each plan has 3 or 4 standing orders behind it, bidding on listings with predictable returns and specific risk levels.
Here’s the screen where you choose portfolio plans:
As listings that meet the plans’ standing orders pop up, bids will be placed. In the future, you’ll be able to build your own plans based on your standing orders. In the meantime, you can still create standing orders (which effectively do the same thing).
Get into portfolio plans now >
Standing orders can now avoid listings you’ve bid on
You’ve asked for this for a long time, and we’ve finally added it. Now when you create a standing order, you can choose to exclude “Listings I’ve bid on”, and avoid putting double bid amounts against the same listings.
Create a standing order now >
Second loans for borrowers
Borrowers who already have a Prosper loan can now take a second loan on Prosper if they meet certain criteria::
- It has been at least 6 months since their most recent loan origination
- The active loan must be current
- The last two monthly payments must have been paid on time
- Must have enough capacity in the $25,000 Prosper loan limit to take a loan which is at least big enough to meet your state’s minimum loan amount requirements
Borrowers seeking a second loan will have their active loan information described along with their credit report data.
Learn more about second loans >
Lender servicing fee changes
Lender annual servicing fees for AA credit grade borrowers change to 0%, and servicing fees for A credit grade borrowers change to 1%.
Interest rate cap changes from 30% to 36%
Prosper’s maximum borrower interest rate changes from 30% to 36%, subject to state laws in the borrower’s state of residence.
Now that we have historical default guidance on bidding pages, we feel comfortable allowing borrowers to create listings up to 36% interest (effectively 35% after potential bank draft charges).
Prosper Facebook application
Prosper members who use Facebook can now share their Prosper loans, bids, and watched listings with their friends on Facebook. I’ve been using it among my fellow Prosper employees, and it has been fascinating to keep track of what others are bidding on or watching. Try it out with your friends.
Add the Facebook application now >
Ended listings hidden
In an ongoing effort to balance the privacy and transparency of our customers, we have changed the visibility of ended listings to only be visible to those who are involved with the listing or resulting loan (if any).
Requests for credit are considered sensitive documents in the world of consumer credit. This change is a proactive move on Prosper’s part for greater consumer privacy, and the same level of transparency that you have come to expect from Prosper, but only on an as-needed basis.
Unless the borrower has an active listing, ended listings will no longer be available for viewing, except by lenders who are involved in resulting loans. If a borrower has an active listing, and has also created listings in the past, those ended listings will be available for view to registered lenders.
Collection agency performance metrics
Collection agency performance metrics now break out agency performance by credit grade. Here are the new numbers:
See collection agency performance metrics >
API users can now sign in via the API, and access listing extended credit data and lenders’ basic loan holdings via web services.
Learn more about Prosper’s API >
And, as usual, many other small changes that are hopefully improvements to your experience on the site. Your feedback, as usual, is welcome.