New Loan Funded — Too Much Business / Need to Expand — $9,500 at 20% — AA Credit — DTI 45%
A new loan funded (Too Much Business / Need to Expand — $9,500 at 20%). I participated via a 2 standing orders (Low Amt Extreme DTI and Low Amt Any DTI) and a manual bid the loan was Autofunding. The borrower had AA credit and 45% DTI. As a reminder my standing orders (and manual bids) 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 my manual bid I pushed my involvement in this listing to my highest dollar amount yet ($197.15).
With this loan I have $4,347.15 in principal across 66 loans ($65.86 per loan) with an weighted average interest rate of 17.18% and an account value of $4,651.36. Each loan on average is 1.4% of my portfolio with a maximum in any one loan being 4.2%.
Here is the listing:
For the readers that believe in reading the actual description without modification:
Parents are begging me to work with their children during the summer months when school is out. Students will have assigned times and days to come. I can be productive and make as much in the summer as I make teaching public school during the school year. To work everything to my financial advantage, I am going to need some funding upfront to purchase four computers, a printer, software for the computers, workbooks, student books, teacher books, various educational kits and materials. I also will need to rent a space, carry insurance, and I will need to hire an assistant. I have experience in grades K-8 in regular education and in special education. I will be working with students across a broad spectrum. I will repay you. I always pay all of my bills on time. The existing debt belongs to my husband and myself. His salary for 2006 was $181,000.
Here is a graph of all loans on Prosper with AA credit and a DTI of < 45% and Loan Amount $9,500 +/-$5,000 funded in the last 100 days:
| Number of Loans | Average Amount Borrowed | Weighted Average | Standard Deviation |
|---|---|---|---|
| 100 | $7,578.61 | 9.16% | 1.38% |
The weighted average plus 1 sigma is 10.54%. The weighted average plus 2 sigma is 11.92%. The weighted average plus 2 sigma is 13.3%. The weighted average plus 3 sigma is 14.68%. The weighted average plus 4 sigma is 16.06%. The weighted average plus 5 sigma is 17.44%. The weighted average plus 6 sigma is 18.82%. The weighted average plus 7 sigma is 20.2%. This loan is between 6 and 7 sigmas higher than the mean. Another statistical aberration. It is a new personal record.
Oh yeah. And they are a homeowner.
What do you think?
2 Millionaires Fallout on the Prosper Forums — Threads Locked and Members Banned
This post is attempting to report fact and not make any judgments. If my rational readers have any comments I would love to hear them…
Today my 2 millionaires forum thread (and many other 2 Millionaires threads) were locked (no new posts allowed.) My guess is this was done because due to complaints by 2 millionaires. I tried to have nonincendiary open dialogue. But both sides are very very quick to flame… There are reports of 10 or more people being banned from the forum. I have not been banned.
Here is what Prosper Brian said when locking the thread:
All,This thread has been locked because it violates the forum policies of “Baiting other members into a fight or displaying other aggressive behavior” and “Being mean-spirited, unruly, or rude.”
Brian
Here is a link to the thread: http://forums.prosper.com/index.php?showtopic=22124
This thread talks about banned members: http://forums.prosper.com/index.php?showtopic=22451. Here is the email they recieved:
You have been suspended from the Prosper forum for violating the following forum policies:
Baiting other members into a fight or displaying other aggressive behavior.
Being mean-spirited, unruly, or rude.
Encouraging others to violate the Prosper Policies, the Prosper Terms of Use or any Prosper legal agreements.
Brian
Also, in response this thread was started calling for reporting 2 millionaires: http://forums.prosper.com/index.php?showtopic=22468
And I have decided to copy the text in case the thread is removed…
Dear Prosper Community:As you know, 10 members have been banned from the forums for 5 days. We are receiving phone calls from Prosper Shira and Brian to explain what is going on.
During my conversation with Shira, it was relayed that in order to have Prosper.com look into a group, we need to use the “report” button that is on every page of prosper.com.
So, I urge everyone to use that function now in reporting these two groups:
TWO MILLIONAIRES have been where you are - will help! Grp 1
TWO MILLIONAIRES have been where you are - will help! Grp 2The report button is at the bottom of the page. When you report them, you should chose the “Other, please explain below” option.
In there, please explain why you are reporting them. You may wish to use this if you wish:
Prosper Marketplace,
I am reporting this group due to their deceptive business practices. This group is manipulating the star system through community payments. As a result, the group continues to push through (by brute force) massive number of loans by virtue of their 5 star status. The group process is supposed to FILTER OUT bad loans, not FILTER IN bad loans. Unfortunately, this is what is occurring.
Purposely using community payments to keep their 5 star rating is deceptive to the marketplace those stars were created to aide. The stars are meant to reflect the payment history of the group’s borrowers; to indicate to lenders that a group is less or more of a risk based repayment compared historical Experian performance. By making community payments for non-paying members WITH THE SOLE INTENTION OF KEEPING THEIR STARS, the group leader of this group is falsifying the one metric made available to lenders to analytically judge a group. This creates a dangerous situation where lenders will bid based not only borrower’s listing but also on the rating of the group. By fraudulently maintaining a 5 star rating, this group is creating a ponzi-scheme like scenario where the first people in get paid off and tell their friends how great it is. It keeps building and building until it becomes unsustainable, where then the top of the pyramid leaves with the funds and the investors are left holding the bag.
While this group is not violating the letter of the TOS, surely they are violating the spirit of the TOS via the community payment method. I am asking for this group to immediately be suspended from making community payments until the time the star rating mechanism can be changed so that it is not influenced by community payments.
Sincerely,
Please add, remove or edit any part you want. If you have a better or more eloquent way of putting something, please let me know and I’ll update my letter.
Please, if you want this madness to stop, this is the way prosper has communicated that it should done.
ETA: Some suggestions from below.
New Loan Funded — cash for small business — $25,000 at 14.5% — AA Credit — DTI 1422125%
A new loan funded (cash for small business — $25,000 at 14.5%). I participated via a manual bid the loan was Autofunding. The borrower had AA credit and 1422125% DTI (undocumentable income). As a reminder my standing orders (and manual bids) 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 $4,150 in principal across 65 loans ($63.85 per loan) with an weighted average interest rate of 17.18% and an account value of $4,651.36. Each loan on average is 1.4% of my portfolio with a maximum in any one loan being 3.2%.
Here is the listing:
For the readers that believe in reading the actual description without modification:
am a registered nurse and recently quit my job with Johnson & Johnson to pursue my dream and passion of having my own health food restaurant.
I have entered into a franchise aggreement with a nationwide smoothie/sandwich franchise. I have also signed the lease and gave the deposits required on the building. However, I am in need of additional funding for the required layout of the building. My credit score is excellent and I could have used the tradtional banks until one evening I saw Propser.com feautured on the evening news and thought what a great idea this was. I have always been responsible in my finances and would pay off this debt in a timely fashion as required.To healthy living,
Luke
Here is a graph of all loans on Prosper with AA credit and a DTI of < 1422125% and Loan Amount $20,000 +/-$5,000 funded in the last 100 days:
| Number of Loans | Average Amount Borrowed | Weighted Average | Standard Deviation |
|---|---|---|---|
| 57 | $20,570.18 | 11.65% | 2.65% |
The weighted average plus 1 standard deviation is 14.3%. The weighted average plus 2 standard deviations is 16.95%. This loan is between 1 and 2 sigmas higher than the mean.
Oh yeah. And they are a homeowner.
What do you think?
No Forums Retort Yet to “Two Millionaires Why Do You Make Community Payments?”
So far no retort from the forums… I had hopes that one of the regulars would have come through with a clean, non incendiary post…
I hope that everyone found the series on groups and community payments interesting… As for me… I didn’t understand the arguments against 2 millionaires in the first place. That is why I started the thread. I gave him a soapbox and he took full advantage. I hope the forum reciprocates on my soapbox offer…
I only wish 2 millionaires hadn’t felt the need to lash out in his posts… His attacks on his attackers only cheapened the debate. I guess I hate mud slinging in general. The fact, that RateLadder was used as a platform for mudslinging bothers me…
Regardless, Be Prosperous.
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