Loan Rate Ananlyzer Strategy Update | P2P Lending, Peer to Peer Lending, People to People Lending

With some of the loans that I analyze there aren’t enough matching loans to analyze the interest rates. I have been thinking of ways to increase the pool of loans without changing the match characteristics.

To that end from what I can tell DTI seems to be the least correlated credit statistic to defaults. So I will be changing my loan rate analysis to match loans from the last 100 days with the credit grade + or – $5,000 in amount and a DTI from 0% to the loan DTI plus 10%.

For example, the last loan I reviewed was B Credit $9,000 with a 15% DTI. So my loan rate analyzer will now find loans from the last 100 days with B Credit, $4,000 to $14,000, and 0% to 25% DTI. For this loan 91 loans were found that matched prior to the change. After the change 92 loans were found. This might be a bad example as what I am really trying to do is generate a pool of at least 50 loans. (The Prosper ROI performance tool requires at least ~50 loans in order to produce results.)

This change should result is a slightly less weighted average as high DTI loans have a higher interest rate and this change now includes low DTI loans. I will be changing the online loan rate analyzer in the next couple of days. The Prosper Loan Rate Analyzer has been updated.

If you liked this article, vote for it on del.icio.us and stumbleupon.

Categories:

Related Articles

Related Stores

Leave a Reply

Your email address will not be published. Required fields are marked *