The Marketplace Survey for April — More and Better Listing Volume

Prosper released the April marketplace survey today… The comentary was from CEO, Chris Larsen.

In April, we saw the supply of loan listings with an attractive risk-return tradeoff hit an all time high and approximately double compared to the prior month. At the end of March, the supply of loan listings with an attractive risk-return tradeoff was approximately $5 million; and at the end of April the supply increased to approximately $11 million and has remained at that level into May.

This significant increase in the supply of loan listings with an attractive risk-return tradeoff is attributed to the fact that on April 15 we commenced our business arrangement with WebBank, a Utah-chartered industrial bank. Through our agreement, all loans originated through the Prosper marketplace resulting from listings posted on or after April 15, 2008 are made by WebBank under its bank charter. Prosper provides services to WebBank in connection with the origination of such loans and Prosper services loans made to Prosper borrowers on behalf of registered Prosper lenders who purchase such loans. In effect, this partnership opened the platform to more borrowers, who may have previously been constrained by low state rate caps.

Also in April, we saw the supply of prime borrower listings hit an all time high, accounting for nearly half of all loan listings in terms of dollars requested. Prime borrower originations also reached its record level of 43% of funded loans.

Currently, the significant increased supply of quality listings is providing more attractive bidding opportunities, which is making it easier for lenders to efficiently deploy more money onto the platform.

No Comments | May 13, 2008 | Filed Under Prosper.com | Leave a Comment

Doug Fuller Update Legal Test

The New Agency Test aka Legal Test has been updated via the blog: Legal Test Update

We have obtained service on 12 of the suits – and have sent “proof of service” back to the courts. Another 41 have been formally entered on the dockets of the court in and are currently out for service. I would believe that some number of these have been served, but we only have a “batch” interface with the process servers, so I don’t have real time date on this. Finally there are 7 suits on which we are waiting for the “file stamped” copy back from the court to send out to service.

At this point, we keep pushing for service. Once we have received proof of service, the minimum time to move for default judgment is 30 days. As a rule, the law firm will wait until 45 days after the service date to file a request for default judgment. Thus far, none of the defendants have “answered” the suit.

I have opted into this lawsuit test (I did not take the junk debt sale price of ~$30 for my loans.) I have hopes that this will eventually yield more than the $30. Either way, I will keep me readers informed if any additional information becomes available.

No Comments | May 9, 2008 | Filed Under Collections, Prosper.com | Leave a Comment

Prosper Debt Sale Offer Roughly 0.93%-4.83%

On Friday, Doug Fuller gave an update on the debt sale.

Synopsis: Prosper put the bid file on an auction site, 8 bids received, all the bids were very disappointing, Prosper has not accepted a bid yet, and is exploring options for getting a better deal.

When asked how disappointing Doug Fuller further responded via comment…

In round numbers, the bids that we received were approximately 1/3 the prices bid in December. The price difference between the August and December represented about a 20% reduction.

Ok so then the next question is how bad is that?

Looking at the December results we see that the range of bids was from 2.8%-14.5%. Extrapolating, that would mean the current bids where roughly 0.93%-4.83%… I would say that is pretty disappointing… (I received a little over 25% from my 1st loan in a debt sale.)

I am willing to let Doug Fuller find other options… 3 cents on the dollar sucks.

No Comments | May 5, 2008 | Filed Under Collections, News, Prosper.com | Leave a Comment