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.

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