[Scott S]

Hello-

I am doing some analysis of historical (2013-14) Prosper loans and am curious if there are any dominant reasons why applicants might withdraw their loans before funding.  I assume that some might 1) simply change their minds, or 2) some might get a better offer elsewhere.  Hopefully not many weddings were called off at the last minute :-)

Is there any clear cut explanations or even good guesses around this?   Feel free to point me to any existing comments on this topic.

Thank you

[Peter]

I'm an old-timer, but, back in the day, some loan listings on LC/P would show up as "withdrawn" by borrowers when the platforms (or investors) didn't have enough capital on hand to fund them or when the borrower failed a pre-disbursement ID or income verification - can't remember timeframe specificity of when the platforms pivoted away from individual investors / started using their balance sheet - though do remember some hubbub about that noise in the data, most of which turned out, I believe, to be due to ID/income checking, which happened temporally *after* the loans were "funded" (much markovian state-transition fun, trying to figure those listings out in order to avoid tied up capital in loans which were "unlikely to originate")...