New Loan Funded — Medical Bills — $9,000 at 17.30% — B Credit — DTI 15%

A new loan funded (Medical Bills— $9,000 at 17.30%). I participated via 3 new standing orders: Low Amt — Low DTI — AF, Low Amt — Mid DTI — AF, and Low Amt — High DTI — AF. Which is this loan was funded as a low amount requested (<$15,000), Low debt to income ratio (<15%), Mid debt to income ratio (<25%), high debt to income ratio (<40%), and was an auto-funding loan. The borrow had B credit and 15% DTI. As a reminder my standing orders only find loans with 0 current delinquencies, 10 or less delinquencies in the last 7 years, and 2 or less public records in the last 10.

With this loan I have $3,700 in principal across 59 loans ($62.71 per loan) with an weighted average interest rate of 16.39% and an account value of $3,868.31. Each loan on average is 1.6% of my portfolio with a maximum in any one loan being 3.9%.

Here is the listing:

For the readers that believe in reading the actual description without modification:

Please consider my loan request. I was given a loan (good faith - not on contract) by my former employer (I was laid-off because her ex-husband had in his alimony settlement that he wouldn’t require alimony any longer if she hired him for my position). I now am working as the Director Of Communications at a marketing firm in Santa Monica, CA. I was promoted from an Event Coordinator after 2 weeks on the job. I am paid a salary and have few expenses (my car, computer, etc. is all paid off), so repayment will be consistent. Originally, the money borrowed was needed to pay off medical bills from a root canal that abscessed and put me in the hospital for 5 days. Apparently, my insurance doesn’t cover more than $1,000/yr in dental, so I was stuck with $30,000 in medical bills. All but $7,500 have been paid, so since the case is in peer review and there is no financial obligation (but usually the doctor provides a settlement), the bills need payment. My former employer loaned me the money, but now the review is dragging on and I’ve moved to LA from Orange County. She needs payment quickly. Please help.

Here is a graph of all loans on Prosper with B credit and a DTI of 15% +/-10% and Loan Amount $9,000 +/-$5,000 funded in the last 100 days:

Number of Loans	Average Amount Borrowed	Weighted Average	Standard Deviation
91	$7,643.91	12.10%	2.16%

The weighted average plus 1 standard deviation is 14.26%. The weighted average plus 2 standard deviations is 16.42%. The weighted average plus 3 standard deviations is 18.58%. Yowser! This loan is between 2 and 3 standard deviations better than the weighted average for the last 100 days. This is a great loan rate!!!! I love standing orders.

What do you think?

February 20, 2007 | Filed Under Loan Review, Prosper.com

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comments

3 Responses to “New Loan Funded — Medical Bills — $9,000 at 17.30% — B Credit — DTI 15%”

John on February 24th, 2007

I think you really loaned the money because the borrower is good-looking. Ever notice how all the loans with pictures of pretty women get funded almost instantly? Really scientific!
Kevin on February 24th, 2007

lol. You are probably right for some people. For me, this was a standing order on an autofunding loan.
Atul on February 27th, 2007

From everything Ive seen, the autofunding loans have a much higher default rate than the ones that wait for the loans to be bid down. This may be related to either the higher rate these people end up with, or simply the type of people that agree to an autofunded loan. Either way, its a riskier investment.