This weekend we implemented a new loan servicing platform. This was a major project that involved the integration of more than 2 million loan based transactions. We are still in the midst of reconciling some anomalies that have impacted a finite number of loans and transactions.
We undertook this project to provide a strategic platform for loan servicing that will benefit both lenders and borrowers as it will enable us to far more easily introduce new product types and ultimately provide additional payment methods for borrowers.
As part of this system integration, we have undertaken a comprehensive audit of all loan transactions. Over the course of the audit, we identified and reconciled some discrepancies that impacted the timing, charging and crediting of non-sufficient funds (NSF) and late fees.
Over the next few days we will be completing the post conversion reconciliation of impacted loans and transactions. We will also be sending an email to lenders and borrowers impacted by any fee issues. To the extent that an error resulted in underpayment of fees to Prosper, we will be forgiving these fees. And in cases where there was an overpayment of fees, Prosper will be crediting lender and borrower accounts. These refunds and adjustments will be posted to accounts sometime in May, and reflected in lenders’ May statements.
Adjustments and/or refunds will be issued in a manner such that neither borrower nor lender is hurt by the corrections.