There was a Prosper update last night. Nothing that was completely unexpected… The one thing that struck me as interesting was that borrower’s are now required to sign the promissory notes themselves… Before the process had been that Prosper was authorized to sign on their behalf… The part that struck me as interesting was the final paragraph…
Although this new process may add some additional time before loan funding, we expect that this change will reduce immediate loan payoffs and enhance the legal enforceability of Prosper promissory notes.
The bold part caught my attention (I added the bold for emphasis) as I am on the loans that are part of the legal test. Related or just coincidental use of the root legal? More info please. Update: Ed Giedgowd Chief Compliance Officer and General Consul of Prosper provided an update on borrower sign loans.
Here the highlights from blog post:
- Portfolio Plan Bids can now be adjust as an average of all the bids in the plan
- Self employed and non verifiable income borrowers will now have DTI displayed as Not Calculated
- Income Range changed to Stated Income and now show regardless of whether it is verifiable or not
- More bankruptcy data is now being shown including chapter and filing date
- There is a messaging change for those lenders that wish to bid on negative ROI listings.
- New Loan Funded — Clearing a personal credit card used for business purchases — $9,500 at 18% — A Credit — DTI 46% 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......
- Update to Prosper Lawsuit Notice Prosper has updated the new agency test opt in letter. There was a math error in the original letter. My correct maximum portion of the loan pool is 0.044211% not the previously stated 4.4211%. I think I will opt into the loan pool, just so that I will stay informed......
- RateLadder IRR/ROI 3/08 Update -- (2.11%) to 13.06% This month had a major event that I think will make it hard for the various ROI sites to even track accruately anymore... The "New Agency Test" aka Prosper is suing borrowers. For me (I opted into the pool) I had my 6 loans immidiately defaulted at $0 value. Over......
- 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 — debt consolodation [sic] — $25,000 at 15.00% — B Credit — DTI 15% A new loan funded this afternoon (debt consolodation [sic] (Loan #6434) — $25,000 at 15.00%). I participated via my standing order: Low DTI and Mid DTI — NAF. Which is this loan was funded as a low and medium debt to income ratio and was an non-auto-funding loan. The borrow had B......
