P2P Lending / NFT Lending Forum

60% of all Prosper loans funded with in 60 seconds!


Distribution of time to invest

The distribution of the time to invest in Prosper loans has changed a lot over the past two years.  Below, we show the percentage of loans that were fully invested in within 1 minute, 1 hour, 1 day or over 1 day.  Historically, most loans were invested in more than a day, but in the last 3 quarters we see that the number of loans fully invested within a minute growing very quickly – now comprising almost 60% of total loans.

 
Conclusion

Online Direct Lending has received greatly increased attention from investors over the past year, leading to a situation where the demand for loans outstrips their supply.  With the most sophisticated investors automating their investment strategies, the many loans are being purchased quicker.  60% of listings are purchased within a minute of posting – and this number is looking to increase!  Historically, the gulf between quick-funding and slow-funding loans is vast, and as the market matures, any investor seeking to build a large and high-quality portfolio will need to pursue a highly-automated investment strategy.

http://www.orchardplatform.com/investment-timing-for-prosper-loans-2/" class="bbc_link" target="_blank">http://www.orchardplatform.com/investment-timing-for-prosper-loans-2/

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https://forum.lendacademy.com/index.php?topic=1785.msg15401#msg88888888Quote"> from: rlv99 on December 10, 2013, 04:58:03 PM

9:15am PT and no new loan postings.

This appears to be a recurring 'normal' event and may not be even news worthy?

But does anybody see new loans for Tuesday morning.

Yawn, maybe I should just go back to bed.

OK who wants to explain what this really means.   TIA

-------------------------------------------------------------------------------

NOTICE OF APPOINTMENT OF SUCCESSOR TRUSTEE

To the Holders of:

Borrower Payment Dependent Notes

of

PROSPER FUNDING LLC
 
 
 
NOTICE IS HEREBY GIVEN, pursuant to Section 6.08 of the Indenture (the "Indenture"), dated as of January 22, 2013, by and between  Prosper Funding LLC and Wells Fargo Bank, National Association, as Trustee, that Wells Fargo Bank, National Association ("Wells Fargo") has resigned as trustee under the Indenture.


Pursuant to Section 6.08 of the Indenture, CSC Trust Company of Delaware, ("CSC Trust"), a banking corporation duly organized and existing under the laws of Delaware, has accepted appointment as trustee under the Indenture.  The address of the designated corporate trust office of the successor Trustee is 2711 Centerville Road, Suite 220, Wilmington, Delaware 19808.

Wells Fargo's resignation as trustee and CSC Trust's appointment as successor trustee were effective as of the opening of business on November 13, 2013.

 Dated:

December 2, 2013
 
 
 
 
 
Very truly yours,


CSC TRUST COMPANY OF DELAWARE
 
 
 
 
 
 


 
 
 
 

I have never seen it this low before plus noted since last week very few new posting at the feeding times.

Q. Most all going to the whole loan program?

Q. Loan filter clogged with?

Q. Computer system problems?

Q. A glut of lenders?

Peter what's "the story"?  TIA

Edit: Around two dozen new loans on Monday morning bringing the available listing into the high 40s or low 50s.

FYI

We've compiled some of the most shocking facts about the payday loan industry from the Milken Institute report  http://www.milkeninstitute.org/pdf/PaydayLenders.pdf" class="bbc_link" target="_blank">http://www.milkeninstitute.org/pdf/PaydayLenders.pdf     below:

In the U.S., 12 million people borrow nearly $50 billion a year through payday loans.

The rates charged on payday loans can be up to 35 times those charged on credit card loans and 80 times the rates charged on home mortgages and auto loans.

Most borrowers owe payday lenders for five months out of the year and typically end up paying $800 for a $300 loan.

The estimated annual percentage rate on payday loans in the U.S. ranges from a low of 196% in Minnesota to a high of 574% in both Mississippi and Wisconsin.

Borrowers with six or more loans each year make up more than half of all payday revenues in California, and they end up paying at least $525 for a $255 loan.

Payday loan stores tend to aggregate in areas with higher rates of poverty. The six counties in California with the highest number of payday lender stores per 100,000 people have an average per capita income of between $17,986 and $26,300, compared to the statewide average of $44,980. The average unemployment rate among those counties is nearly 15.8% compared to the state average of 11.8% and one in five people lives in poverty compared to 15% nationally.

Read more: http://www.businessinsider.com/outrageous-facts-about-payday-loans-2013-10#ixzz2imOugXJO" class="bbc_link" target="_blank">http://www.businessinsider.com/outrageous-facts-about-payday-loans-2013-10#ixzz2imOugXJO

Ray has published his How the Economy Works before but a few days ago he put out this 30 minute video on the subject for the general public as Bloomberg said probably as a "public service".

Video 30 minutes
http://www.youtube.com/watch?v=PHe0bXAIuk0" class="bbc_link" target="_blank">http://www.youtube.com/watch?v=PHe0bXAIuk0

below the first section of this text covers the video in words.

Economic Principels - Section 1 How the Economic Machine Works
http://www.bwater.com/Uploads/FileManager/research/how-the-economic-machine-works/ray_dalio__how_the_economic_machine_works__leveragings_and_deleveragings.pdf" class="bbc_link" target="_blank">http://www.bwater.com/Uploads/FileManager/research/how-the-economic-machine-works/ray_dalio__how_the_economic_machine_works__leveragings_and_deleveragings.pdf



Ray Dalio
Ray Dalio (born August 1, 1949) is an American businessman and founder of the investment firm Bridgewater Associates.  In 2012, Dalio appeared on the annual Time 100 list of the 100 most influential people in the world.  In 2011 and 2012 he was listed by Bloomberg Markets as one of the 50 Most Influential people. Institutional Investor's Alpha ranked him No. 2 on their 2012 Rich List.

Bridgewater Associates
Bridgewater Associates is an American investment management firm founded by Ray Dalio in 1975. The firm serves institutional clients including pension funds, endowments, foundations, foreign governments and central banks.

It utilizes a global macro investing style based on economic trends, such as inflation, currency exchange rates, and U.S. gross domestic product. Bridgewater Associates began as an institutional investment advisory service, graduated to institutional investing and pioneered the risk parity investment approach in 1996.

In 1981 the company moved its headquarters from New York City to Westport, Connecticut and currently engages 1,200 employees. It embraces a corporate culture that encourages transparency and the elimination of the decision making hierarchy,[3] and in 2011 was the world's largest hedge fund company with US$122 billion in assets under management.

This news probably deserves its own string.

Prosper Raises $25 Million in New Round, Adding BlackRock as a Backer
http://dealbook.nytimes.com/2013/09/24/prosper-raises-25-million-in-new-round-adding-blackrock-as-a-backer/" class="bbc_link" target="_blank">http://dealbook.nytimes.com/2013/09/24/prosper-raises-25-million-in-new-round-adding-blackrock-as-a-backer/

Peter Tweets: "A record day at @ProsperLoans yesterday - over $3.2 million in new loans originated"


http://www.prosper.com/invest/performance.aspx?af=0&debug-QaZwSxEdC=True&esba=232&flp=False&gm=0&gr=0%2c1%2c2%2c3%2c4%2c5&hw=0&iba=255&ibid=2&ihide=0&iwatch=0&lc=0%2c1%2c2%2c3%2c4%2c5%2c6%2c7%2c8%2c9%2c10%2c11%2c12%2c13%2c14%2c15%2c16%2c17%2c18%2c19%2c20&lq=&maxAmt=35000.00&maxDTI=1000000&maxERR=0.36&maxFund=1&maxGrpTLC=1000000&maxLYR=1&minA=0&minAA=0&minAmt=0&minB=0&minC=0&minD=0&minDTI=0&minE=0&minERR=0&minFund=0&minGrpTLC=0&minHR=0&minLYR=-0.01&minNC=0&occ=&od=09%2f24%2f2013&oer=09%2f24%2f2013&osr=09%2f24%2f2013&pbt=1&plcsd=&plp=0&pmr=0&prdTP=1%2c2%2c5&sf=10&sh=0&sn=&state=&tg=0" class="bbc_link" target="_blank">http://www.prosper.com/invest/performance.aspx?af=0&debug-QaZwSxEdC=True&esba=232&flp=False&gm=0&gr=0%2c1%2c2%2c3%2c4%2c5&hw=0&iba=255&ibid=2&ihide=0&iwatch=0&lc=0%2c1%2c2%2c3%2c4%2c5%2c6%2c7%2c8%2c9%2c10%2c11%2c12%2c13%2c14%2c15%2c16%2c17%2c18%2c19%2c20&lq=&maxAmt=35000.00&maxDTI=1000000&maxERR=0.36&maxFund=1&maxGrpTLC=1000000&maxLYR=1&minA=0&minAA=0&minAmt=0&minB=0&minC=0&minD=0&minDTI=0&minE=0&minERR=0&minFund=0&minGrpTLC=0&minHR=0&minLYR=-0.01&minNC=0&occ=&od=09%2f24%2f2013&oer=09%2f24%2f2013&osr=09%2f24%2f2013&pbt=1&plcsd=&plp=0&pmr=0&prdTP=1%2c2%2c5&sf=10&sh=0&sn=&state=&tg=0

Addressing the removal of the Loan Description & Loan Details Fields
by Prosper on 09/20/13

Addressing the removal of the Loan Description & Loan Details Fields


Some of our lenders have expressed concern with the recent removal of the loan description and loan title fields on the Prosper borrower application. I want you all to know that we hear your concerns. This is something that we are currently testing. We have not made the decision to permanently remove these fields at this time.

I would like to take a moment to explain why we removed the fields and why we believe it will have a strong positive impact for our lenders long term.

■Created Confusion – In recent user testing, we found that borrowers were significantly less likely to complete a Prosper loan application when they were asked to provide a Loan Description or Loan Title. Borrowers found this question to be intrusive and, in many cases, confusing to their private loan application process. These fields proved to be the biggest drop off point for potential borrowers. We removed them to gauge response for a period of time.

■Supply and demand – We strive to have an onboarding process that is simple and easy and makes sense to users. The more simple a process can be made, the more potential borrowers we can reach. In order for Prosper to better streamline the borrower application and meet the demand that you all have expressed for new loans, we will consistently make changes to our platform that we believe will positively impact the way users interact with our product and ultimately, the way the platform performs.


Ultimately, we understand your concerns, and we are exploring the best way to meet both the lenders' concerns and improve the borrowers' experience at equal measure, including adding the field back in the near future. Standby for updates on this potential change and more as we begin to interpret its impact on our platform.

Aaron Vermut
President, Prosper Funding LLC

I funded a loan yesterday (9/19) that came up with a full discription filled out.

No it wasn't one from weeks ago but a new posting on 9/19 unless of course something weird happened and it sat somewhere for weeks in someone pending box?

OK Sports Fans it looks like Prosper did an additional feeding today at 12:47pm.

That new loan funnel must be working well?

Oh yea WTH is a "loan funnel"?  TIA

I found the descriptions useful in eliminating "liar loans", like the Title was "debt consolidation" and when you read the description it would say things like "buy a used car for my son to take to college" or "pay off my daughters debts". lol

Again, I only read the descriptions on loans I was about to make it was the last thing I did.  And the only use of the description I found was to change my mind when the borrower said something "dumb".

I will miss them.

Credit Variables Explained: Employment Tenure
http://www.orchard-app.com/blog/?p=365" class="bbc_link" target="_blank">http://www.orchard-app.com/blog/?p=365


Below is the performance based on employment tenure.  Based on these numbers, the stability of income is not as strong a predictor of performance as other variables we've reviewed, but there is some weakness in the lower end.  Specifically, we do not like the "n/a" category.  It isn't entirely clear what this means, but from the performance below, it isn't good and should likely be omitted from any filtering strategy.  Any further exclusion decisions would have to depend on the investor's risk/return preferences and expectations.



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Perhaps a few videos from the Lend It Conference a few months back to provide some general overview information.

http://www.youtube.com/lenditconference" class="bbc_link" target="_blank">http://www.youtube.com/lenditconference

Perhaps you start with this one.
LendIt 2013: Intro & Keynote, Renaud Laplanche CEO of Lending Club
http://www.youtube.com/watch?v=FKoMS_MHfng" class="bbc_link" target="_blank">http://www.youtube.com/watch?v=FKoMS_MHfng

"I spent a fair amount of time on the phone talking to LC"
I am suprised they would spend a "fair amount of time" talking to you since there is a glut of lenders.