I have often wondered if the large lenders have any capacity problems. That is, do they ever find it hard to find loans.  I asked pensioner that very question at Prosper Days and his response was, “I moved $750,000 into Prosper in a month and a half, so I would say no.”  How does that translate to my situation and lending requirements?

I think I could move 10K in $50 increments into Prosper loans in a month and a half without compromising my lending values.  I would use a 2 dimensional standing order ladder.  I currently use a one dimensional ladder on DTI setup at the weighted average plus 1.5%.  I am going to change this to be the weighted average plus 1 standard deviation and require any DTI greater than 40% to be a homeowner.  Also, I currently only bid on auto funding loans as I like the certainty in the interest rate.  But if I had 10K to move into Prosper this is what I would do…

First of all I would continue to ladder on DTI at weighted average plus standard deviation and require any DTI greater than 40% to be a homeowner, but I would open my bidding to both funding options.  My DTI ranges are 0-15, 0-25, 0-40, 0-70, and 0-70+.  Second, I would ladder on interest rate without DTI as a consideration using the weighted average, weighted average + 1 sigma, weighted average + 2 sigmas, and weighted average + 3 sigmas on both auto funding and non auto funding.  I would use ProProsper to find these interest rate levels.

This dual ladder would not only get the 10K into play quickly (I think less than 1.5 months), but it would find only great interest rate loans and it would put more money into GREAT loans.

Anybody care to donate 10K and see how it works?  Or join ProProsper and see for your self.

Related Posts

• New Loan Funded — paying bills — $5,000 at 26.00% — D Credit — DTI 12% A new loan funded (paying bills — $5,000 at 26.00%).  I participated via my new standing order: Low Amt, Low DTI — AF.  Which is this loan was funded as a low amount requested, low debt to income ratio and was an auto-funding loan.  The borrow had D credit and......
• New Loan Funded — Consolidate Personal Credit — $20,000 at 18.00% — C Credit — DTI 22% A new loan funded (Consolidate Personal Credit — $20,000 at 18.00%).  I participated via my standing order: Mid DTI — NAF.  Which is this loan was funded as a medium debt to income ratio and was an auto-funding loan.  The borrow had C credit and 22% DTI.  As a reminder......
• New Loan Funded — Relocating, Need Quick Cash to Payoff Home Equity Loan — $25,000 at 22% — C Credit — DTI 28% A new loan funded (Relocating, Need Quick Cash to Payoff Home Equity Loan – $25,000 at 22%).  I participated via a manual bid the loan was Autofunding.  The borrower had C credit, 28% DTI. and is a homeowner.  As a reminder my standing orders (and manual bids) only find loans with 0 current delinquencies,......
• New Loan Funded — Secure Borrower needs funds to complete rental houses — $25,000 at 12.00% — AA Credit — DTI 25% A new loan funded (Secure Borrower needs funds to complete rental houses — $25,000 at 12.00%).  I participated via my standing order: Mid DTI — AF.  Which is this loan was funded as a medium debt to income ratio and was an auto-funding loan.  The borrow had AA credit and......
• 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......

Related Websites

• Compounding and the Rule of 72 The reason why it is so important for you to start saving early is the magic behind the concept of compounding and the rule of 72. People who wait until they are later to begin saving are going to have to save much more and much more quickly in order......
• Social Banking With inspiration from The Simple Dollar, I thought of a concept for a new kind of banking. I'm still playing with this, but I'm calling it "Open Source Banking". Sadly, a quick Google search revealed this idea was not new. It looks like the idea was first coined with......
• Can't Pay Credit Cards I caught a great post at Moolanomy last week that described the five stages of financial health.   The first stage, which Pinyo labeled "The Debt Spiral," is an especially tough one to move beyond.  Over the last few months of writing about personal finances I've received several emails from......
• Not to be outdone ... ... Ford raises GM on its $1.99 gas through 2007 offer: Ford offers 0% loans, $1,000 gas credit And this promotion, unlike GM's, is nationwide.  Zero-percent loans are nothing new, but the gas deals are new.  $1,000 amounts to about $1 off per gallon of gas for a year if......
• Making Your Maximum Annual IRA Contribution at Tax Time RateLadder made a guest post on LazyMan's blog on a strategy he is using to fund his Simplified Employee Pension Plan (SEP-IRA). A SEP-IRA is a retirement plan for individuals that are self-employed, and thus do not have an employer sponsored plan (such as a 401k or 403b). Basically, he......

Online Stores

• Manuals, Strategy Casino Collectibles
• Mixed Lots Half Dimes Coins: US Coins & Paper Money
• Auto Fill Ponds Water Features Garden Décor Yard, Garden & Outdoor Living Nursery
• With Months And Instructions Sundials Garden Décor Yard, Garden & Outdoor Living Nursery
• Early (1792-1837) Half Dimes Coins: US Coins & Paper Money

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


Categories:

Prosper.com, Strategy

Tags:

azerbaijan, mozambique