Lazy Man at LazyManAndMoney is having a week of Prosper posts: Prosper Week… He is an early adopter of Prosper (Feb 06) and always has excellent insights… Don’t miss it.
A new loan funded (Clearing a personal credit card used for business purchases — $9,500 at 18%). I participated via an automatic bid Low AMT — Extreme DTI — Autofunding. Which means this funded at less than 15K less than 60% DTI and was autofunding. The borrower had A credit and 46% 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 this loan I have $4,150 in principal across 65 loans ($63.85 per loan) with an weighted average interest rate of 17.03% and an account value of $3,962.23. Each loan on average is 1.6% of my portfolio with a maximum in any one loan being 3.8%.
Here is the listing:
For the readers that believe in reading the actual description without modification:
I am now the owner of my family’s 30 year old promotional products distributorship. I am making this loan to pay off a personal credit card I used to purchase products for my business. The credit card is for my husband and me. I want to keep my business debt seperate from my husband’s. I would like to borrow the money and pay it off over time so that I don’t have to put a squeeze on my cash available to run my business. I only listed my income from my part time job. My husband’s income takes care of all of our household expenses and our auto and house loans. I did not include my net income from my business because I have not prepared my 2006 income tax return yet. I estimate my 2006 net income for my business to be about $18,000.
I am very impressed with this business community and hope to be able to participate as a lender in the future.
Here is a graph of all loans on Prosper with A credit and a DTI of < 46% and Loan Amount $9,500 +/-$5,000 funded in the last 100 days:
Number of Loans
Average Amount Borrowed
Weighted Average
Standard Deviation
117
$7,669.97
10.44%
1.83%
The weighted average plus 1 standard deviation is 12.27%. The weighted average plus 2 standard deviations is 14.1%. The weighted average plus 3 standard deviations is 15.93%. The weighted average plus 4 standard deviations is 17.76%. The weighted average plus 5 standard deviations is 19.59%. This loan is between 4 and 5 sigmas higher than the mean. Holy shnikes! A statistical aberration. I LOVE standing orders!
This is the fifth installment of ProProsper’s new listings via RSS feed…
Homeowner listings are AA-E credit grades with an interest rate greater than weighted average and with verified homeownership. A new listing is added every 30 minutes if one exists.
This is the fouth installment of ProProsper’s new listings via RSS feed…
1 sigma listings are AA-E credit grades with an interest rate greater than weighted average plus 1 sigma. A new listing is added every 30 minutes if one exists. This feed was just added to the lineup…
This is the third installment of ProProsper’s new listings via RSS feed…
2 sigma listings are AA-E credit grades with an interest rate greater than weighted average plus 2 sigma. A new listing is added every 30 minutes if one exists. This feed was just added to the lineup…
This is the second installment of ProProsper’s new listings via RSS feed…
3 sigma listings are AA-E credit grades with an interest rate greater than weighted average plus 3 sigma. A new listing is added every 30 minutes if one exists.
This is the first installment of ProProsper’s new listings via RSS feed…
Under appreciated listings are AA-E credit grades with an interest rate greater than weighted average with the percent funded < 20% with 5 days remaining, < 50% with 3 days remaining, or < 80% with 1 day remaining. A new listing is added every 30 minutes if one exists.
Under appreciated listings are AA-E credit grades with an interest rate greater than weighted average with the percent funded < 20% with 5 days remaining, < 50% with 3 days remaining, or < 80% with 1 day remaining. A new listing is added every 30 minutes if one exists.
3 sigma listings are AA-E credit grades with an interest rate greater than weighted average plus 3 sigma. A new listing is added every 30 minutes if one exists.
Homeowner listings are AA-E credit grades with an interest rate greater than weighted average and with verified homeownership. A new listing is added every 30 minutes if one exists.
These feeds can be used in the same way any RSS feed can be used. Read via a RSS reader, added to your Yahoo or Google homepage, and/or republished to your website. And the feeds are completely free no need to register. I added 3 new pages to rate ladder where you can read the feeds… Very cool.
Over the next couple of days I will publish one post per feed.
A legitimate borrower at Prosper should have 1 main objective — get the loan fully funded. Granted there are other objectives (like getting the best interest rate), but none are as important as getting 100% funded. Without being 100% funded you will not get the loan.
Prosper.com can be used to obtain up to $25,000 dollars in funding by borrowing money from ordinary people via the Prosper peer-to-peer lending platform. This funding can typically be obtained faster and with less hassle than your local bank.
To the end goal of getting your listing fully funded I have some rate guidance for borrowers. These rates will get your legitimate listing funded. This is not to say that listings with fraudulent, poorly written, missing information, or unexplained flaws will fund. BUT, all legitimate well written and well meaning borrowers will get funded at these rates…
I encourage all borrowers interested in Prosper to click the banner on the top right of this page and explore for yourself. There are many strategies for some of the other objectives, but for getting to 100% funded there is no better strategy than picking the correct starting interest rate.
Without further ado… borrowers please use these rates with your listing for all credit grades 29% … lol j/k.
Credit Grade
Interest Rate
Fully Funding %
AA
13%
90%
A
16%
90%
B
20%
85%
C
23%
80%
D
27%
80%
E
29%
75%
HR
29%
50%
p.s. If you want my money you will also make your listing automatic funding.
