Introducing the Prosper Standing Order Analyzer, the second in a series of live Crystal Reports.
This is the actual Prosper Standing Order Analyzer that I use when evaluating standing order loan rates. For input it takes the high and low debt to income ratio as well as the high and low loan amount. It looks at all loans in the last 100 days with low DTI to high DTI, and low loan amount to high loan amount. It returns a graph of the average interest rate by credit grade and calculates the number of loans, average amount borrowed, weighted average interest rate by amount borrowed, and the standard deviation of the interest rate.
For example, let’s say you wanted to setup a standing order for loans from $1,000 to $9,999 and DTI from 0% to 40%. What interest rates should you require? Enter the standing order analyzer. It can tell you the weighted average and the standard deviation broken down by credit grade.
For our hypothetical standing order here is the graph produced:
And here is the resulting rates:
| Credit Grade | # Loans | Avg Amt | Avg Rate | Std Deviation | Avg Rate + SD |
|---|---|---|---|---|---|
| AA | 203 | $3,636.94 | 8.26% | 1.07% | 9.33% |
| A | 126 | $4,277.61 | 9.25% | 1.35% | 10.60% |
| B | 160 | $4,550.14 | 11.89% | 2.61% | 14.50% |
| C | 228 | $4,890.12 | 15.29% | 3.00% | 18.29% |
| D | 324 | $4,190.12 | 18.58% | 3.42% | 21.99% |
| E | 472 | $3,299.95 | 23.18% | 4.62% | 27.80% |
| HR | 708 | $2,268.97 | 24.00% | 5.34% | 29.34% |
| NC | 34 | $2,086.09 | 22.81% | 6.74% | 29.56% |
This is a very useful information. For example one might say that they need at least the weighted average plus 1 standard deviation. Or there you want to ladder from the weighted average to the weighted average plus 2 standard deviations. The possibilities are limitless, the goal is to beat the average and find a highly positive ROI loan parameters.
One small apology, I still do not have a 1 CPU license for my Crystals. So only 5 people at a time can use the tool. Also, because of a bug in Crystal each time the report is run a user license is used for 20 minutes.
Give it a try.
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Categories:
Prosper.com, Statistics, Strategy, Tools
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