1. Borrowers can now have second loans
2. Authenticated API for access to extended credit and a lender’s loans for lenders
3. 0% servicing fee on AA credit
4. In states where rates aren’t capped the new maximum is 36%
5. Portfolio Plans might be the biggest change of all.
6. Bidding guidance based on Prosper default rates (see picture).

Here is the note from Prosper Andrew (here is the forum thread)…

Hi everyone,

Tonight we made a number of significant changes to the site, many based on your feedback. Changes include…

Improved bidding guidance for lenders

As the Prosper portfolio has grown and matured, we finally have a volume of loan payment activity that has allowed us to replace the Experian historical default data with Prosper’s own estimated default data.

We have also performed some analysis on the differences between borrowers within the same credit grade, and segmented the borrower population into 54 unique segments (one segment, for example, is C-grade borrowers with no automatic funding, 0 now delinquent accounts, and 2 or more inquiries). Based on which segment the borrower belongs to, we will display the estimated loss (due to default), rate adjustment (uncollected interest and fees), and annual servicing fee, and come up with an estimated return for loans to borrowers of that type.

Here’s an example of the new bid input for the example borrower:

Search listings now >

Portfolio plans introduced

Along with the new bidding guidance format (where return is calculated from actual Prosper performance), we are happy to introduce a new feature called “Portfolio Plans”. Portfolio plans are currently 4 model plans which you can think of as bundled standing orders. Each plan has 3 or 4 standing orders behind it, bidding on listings with predictable returns and specific risk levels.

Here’s the screen where you choose portfolio plans:

As listings that meet the plans’ standing orders pop up, bids will be placed. In the future, you’ll be able to build your own plans based on your standing orders. In the meantime, you can still create standing orders (which effectively do the same thing).

Get into portfolio plans now >

Standing orders can now avoid listings you’ve bid on

You’ve asked for this for a long time, and we’ve finally added it. Now when you create a standing order, you can choose to exclude “Listings I’ve bid on”, and avoid putting double bid amounts against the same listings.

Create a standing order now >

Second loans for borrowers

Borrowers who already have a Prosper loan can now take a second loan on Prosper if they meet certain criteria::

• It has been at least 6 months since their most recent loan origination
• The active loan must be current
• The last two monthly payments must have been paid on time
• Must have enough capacity in the $25,000 Prosper loan limit to take a loan which is at least big enough to meet your state’s minimum loan amount requirements

Borrowers seeking a second loan will have their active loan information described along with their credit report data.

Learn more about second loans >

Lender servicing fee changes

Lender annual servicing fees for AA credit grade borrowers change to 0%, and servicing fees for A credit grade borrowers change to 1%.

Interest rate cap changes from 30% to 36%

Prosper’s maximum borrower interest rate changes from 30% to 36%, subject to state laws in the borrower’s state of residence.

Now that we have historical default guidance on bidding pages, we feel comfortable allowing borrowers to create listings up to 36% interest (effectively 35% after potential bank draft charges).

Prosper Facebook application

Prosper members who use Facebook can now share their Prosper loans, bids, and watched listings with their friends on Facebook. I’ve been using it among my fellow Prosper employees, and it has been fascinating to keep track of what others are bidding on or watching. Try it out with your friends.

Add the Facebook application now >

Ended listings hidden

In an ongoing effort to balance the privacy and transparency of our customers, we have changed the visibility of ended listings to only be visible to those who are involved with the listing or resulting loan (if any).

Requests for credit are considered sensitive documents in the world of consumer credit. This change is a proactive move on Prosper’s part for greater consumer privacy, and the same level of transparency that you have come to expect from Prosper, but only on an as-needed basis.

Unless the borrower has an active listing, ended listings will no longer be available for viewing, except by lenders who are involved in resulting loans. If a borrower has an active listing, and has also created listings in the past, those ended listings will be available for view to registered lenders.

Collection agency performance metrics

Collection agency performance metrics now break out agency performance by credit grade. Here are the new numbers:

See collection agency performance metrics >

Authenticated API

API users can now sign in via the API, and access listing extended credit data and lenders’ basic loan holdings via web services.

Learn more about Prosper’s API >

And, as usual, many other small changes that are hopefully improvements to your experience on the site. Your feedback, as usual, is welcome.

Best regards,
Andrew

Related Posts

• Programmer and Blogger Seeks Debt Consolidation Loan My Prosper Group is proud to present our first listing... This listing is attempting to put the social in social capital. Deep Market also posted the following Social Lending is not Socialism. He has been a member of my group, following the p2p lending market and commenting on RateLadder for......
• Prosper Site Update 12/2007 Verbatim from amf of Prosper... All, Tonight we did a bunch of back-end work and made a couple of changes that you might notice...   Lender overview changes We've received a lot of feedback from lenders that the "Active loan summary" box on the "Your Account > Lending" page is......
• Prosper Estimated Return Guidance Pessimistic Example -- aka PML #5 -- Pay off high interest home improvement cards In my Friday post, I encouraged everyone to think for themselves when it comes to estimated return guidance. It is after all only an estimate. Today, I would like to pimp a listing I have bid on that I feel demonstrates a great return loan, but it is a fairly......
• INVEST IN BANANA BOOKS! -- Pimp My Listing #3 Welcome to the second installment of Pimp my Listing. I was in the previous loan by these entropenours. That loan was paid as expected. I placed $50 bids @ 14.94, 15.94, 16.94, and 17.94. This is a super clean C requesting $25K @ 29%. $25 Bonus For New Lenders How......
• Update: RateLadder Prosper Listing Request Reaches 100% Funded Sometime late afternoon on Wednesday (1/30/08) my loan reached 100% funding.  This is a critical first step in getting a Prosper loan. Without reaching 100% funded you cannot get a Prosper loan.  Reaching 100% funded should be the 1st goal of an Prosper borrower and the tools for reaching 100% should......

Related Websites

• Woe to the lender who guesses wrong The standard Settlement Statement, the HUD-1, just got a makeover this December.  The extra page is an extra burden on lenders to get the Good Faith Estimate right the first time. Last week at the closing for our new house, we got a small bonus courtesy of the new requirements. ......
• Two Ways To Wisely Spend Your Tax Refund Start or add it to your emergency fund. You should do this first if you don’t have at least $1000 in your emergency fund. One great place to put it is in a high interest savings account, some of which are several times higher than many brick and mortar banks. There’s also HSBC......
• Prosper - Peer To Peer Lending Peer to peer lending ( p2p lending) is gaining traction as a legitimate investing vehicle. All of my favorite investing books break investing down into stocks, bonds, CDs, mutual funds, etc. P2p lending is carving a niche for itself. P2p lending allows individual investors to borrow and lend money......
• Obama's $275 Billion Housing Crisis Plan President Obama announced a $275 billion plan that would help homeowners, as many as 9 million, refinance or re-negotiate their home loans. Said President Obama "This plan will not save every home, but it will give millions of families resigned to financial ruin a chance to rebuild...It will prevent......
• New Features make Lending on Prosper Better than Ever Prosper.com released a few new features recently. These features might be interesting to all lenders or potential lenders. Here's a run down on some of the new features and how they could affect Prosper's peer-to-peer lending market. Portfolio Plans - Prosper now provides an automated method to bid on set......

Online Stores

• Credit, Charge Cards Trading Cards Collectibles
• Home-Based Businesses Businesses for Sale Opportunities

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


Categories:

Features, Prosper.com

Tags:

azerbaijan, mozambique