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Prosper Increases Allocation to Fractional Pool

Posted by Eric Thaller

To improve the investing experience for Prosper’s community, Prosper recently made a change to its platform. Prosper started increasing the allocation of loans to the fractional pool over the last week, so that retail investors can invest more in the fractional pool faster and easier.

Prosper’s CEO, Aaron Vermut, alluded to this change earlier this year, and Prosper is pleased to say that by the end of 2015 the retail investor experience should improve even further. Prosper’s goal is to ultimately have an equal allocation of loans between the fractional and whole loan pool. Prosper plans to continue increasing the allocation of loans to the fractional pool in the future, assuming there continues to be demand from retail investors for investing in the categories of loans available on Prosper’s platform.

Prosper is excited to roll out this change to its community, and Prosper is confident it will further build upon the investing experience with Prosper.

07/30/2015 by in Featured, Lenders

Prosper Introduces Debt Sale Program

By Eric Thaller

As part of our ongoing efforts to improve the investor experience on the Prosper platform, we are making changes to the way we deal with charged-off loans.  On July 17th, Prosper introduced a debt sale recovery strategy aimed at delivering an increased level of return for investors in a more timely manner. Under the new debt sale program, which is common practice in our industry, charged-off loans during the month will be packaged together for a debt sale the following month.

This new debt sale strategy offers significant benefits to our investors. First, charged-off loans will be lumped together and sold to a single debt buyer on a monthly basis, delivering a return to investors on a significantly reduced timeline.  Second, the current market for debt sales is at historically high levels – we have negotiated a debt sale rate that will deliver a meaningfully higher net recovery amount than is currently being realized by the collections agency.

Previously, charged-off loans were placed at a recovery agency that conducted third party collection efforts on behalf of Prosper.  Post charge-off recovery efforts are highly reliant on lump sum settlements (settlement for a lesser balance), long-term repayment arrangements (reduced low monthly payments) and other long-term settlement strategies, which can extend beyond a 12-18 month period.

Notes corresponding to loans that have been sold will have “sold” listed next to them in investors’ accounts. Investors will be able to see proceeds related to a debt sale on their monthly statement, as well as in the “account transactions” section, which is located in the history section of the online account.

We are committed to making ongoing changes that improve the experience for our customers. If you are a Prosper investor, and have any questions about this change, you can contact us at investorteam@prosper.com or by phone at 877-611-8797.

07/21/2015 by in Featured, Lenders, Prosper News

Prosper Opens for Business to Investors in Indiana

Posted By Eric Thaller

Today we announced that the Prosper platform is now available to investors in Indiana. With the addition of Indiana, Prosper is now open to investors in 32 states and the District of Columbia. We appreciate the work of the state regulators to bring this investment opportunity to its residents.

As one of the only platforms open to unaccredited individual investors in the U.S., Prosper offers a great way for individuals to diversify an investment portfolio with an asset class that provides attractive returns.

Indiana residents can open a traditional investment account or a Prosper retirement account, which offers certain tax advantages. We suggest a minimum investment of $2,500 in order to properly diversify across at least 100 notes.

For borrowers, marketplace lending offers access to competitively priced loans that have fixed terms, transparent fees and no prepayment penalty. Borrowers come to Prosper to consolidate high-interest debt or fund large purchases such as home improvement projects, medical expenses, or weddings and other special occasions.

The news about Indiana follows our announcement last week of another record quarter that has pushed us above $4 billion in loan originations through the platform since it launched in 2006. We just closed out our largest quarter ever — $912 million in loans originations through the platform, a staggering increase of 1166% in two years.

We’re thrilled to welcome Indiana investors to the platform and to be able to offer more people a better way to borrow and invest. We look forward to working with more states in the future.

07/13/2015 by in Featured, Lenders, Prosper Spotlights

Prosper Reaches New Milestones — $4 Billion in Loans Following Another Record Quarter

In early 2013, when my partners, Steve and Ron, and I joined Prosper Marketplace, this company and this industry were in a vastly different place. Prosper Marketplace had just closed out 2012 with $150 million in loans originated through the platform, 85 employees, and frankly, a future that was very much in question. At the time, we had no expectation that Prosper would reach the kind of loan volume it is doing today. We just knew that Prosper could help people get out from burdensome high-rate debt and be a better option for paying for large-ticket purchases. We set to work building, hiring and fixing things here, with the goal of bringing in the best people and scaling the business

Back in the second quarter of 2013 (our first full quarter at the company) Prosper originated $72 million in total loans through the platform. Fast-forward two years, and we just closed out our largest quarter ever — $912 million in loans originations through the platform, a staggering increase of 1166% in two years. This brings us to another milestone – today, we crossed more than $4 billion in loans on the platform since launching in 2006. This growth has not come at the expense of quality – we continue to deliver excellent loan performance and the quality of our loans is stronger than ever.

 

 

As we look toward the second half of the year we see that Prosper is currently on track to double the $1.6 billion in loans originated through the platform in 2014, which in itself was a record (and a 350% increase from 2013). These numbers underscore the continued growth and momentum of marketplace lending as it moves toward mainstream awareness. More and more people are realizing that marketplaces and online lending are a better way to borrow and invest. And the industry is noticing as well. So far this year, Prosper Marketplace has been named one of Forbes Magazine’s Most Promising Companies of 2015, and AlwaysOn named Prosper Marketplace the OnFinance Company of the Year, as well as one of their Global 250 Top Private Companies.

Our focus remains on bringing consumer-friendly personal loans to more people, and making changes to improve the experience for both its borrowers and investors. This includes launching a responsive website that functions across desktop and mobile devices, and making continued improvements to the verification process so it is a fast and streamlined experience. We are seeing more people come back for their second loan through Prosper, as well as a wider variety of use cases beyond debt consolidation, such as large purchases, medical expenses, and home improvement projects.

Prosper is also making improvements for its retail investors, which remain a core part of the Prosper investor community. In April Prosper introduced an update that gives retail investors better visibility into pending orders and makes it easier for them to access data. In the coming months there will also be more data analytics and account management tools to improve investors’ experience using the platform. As Prosper works to broaden access for retail investors, we also saw the launch of the first publicly traded fund through River North, a significant move toward broadening retail access to marketplace loans.

To keep up with all of this growth, Prosper Marketplace continues to grow its team in all of its locations. We now have more than 457 employees with offices in San Francisco (recently named one of the coolest offices in the Bay Area by the SF Business Times), Salt Lake City (where we just opened a new office), and Phoenix (where we now have 130 people focused on customer service and verification). This year alone, we have doubled the size of our engineering team and we’re still hiring across all functions. If you are interested in what we are building, check out the jobs section of our website.

We are proud to have pioneered the online lending market and to operate one of the largest platforms in the world today, with much more growth in store. We continue to be inspired our customer stories, and believe in our mission to help people achieve financial well being. Thank you to the entire community, from all of us here.

Aaron Vermut
CEO, Prosper Marketplace

 

07/09/2015 by in Borrowers, Featured, Lenders, Prosper Spotlights

Prosper Reports Record First Quarter

Prosper Marketplace just closed out our first quarter and we’re very pleased to report that it was our strongest yet. In the first quarter of 2015, Prosper facilitated a record $595 million in loans through the platform, up 200% from the first quarter a year ago. We attribute this to the increasing awareness of Prosper combined with the rapid growth across the entire consumer marketplace lending industry. On the borrower side, we continue to see more people turn to us for access to three types of personal loans (debt consolidation, large purchases and business loans based on personal credit). They are attracted by the competitive rates and convenience over traditional lending. We also continue to speak with a variety of investors who want access to this asset class.

As we plan for more growth this year and beyond, our focus remains on building a business for the long term. This means focusing on quality underwriting, people and a scalable technology infrastructure. I often say that underwriting is the most important thing we do here at Prosper, and that continues to be true. Our investors have come to rely on the quality and predictability of our platform. We’re also actively working on building out our verification and customer service teams (among other parts of the business) so that we can deliver the best customer service experience in the industry.

On the borrower side, more and more Americans are turning to marketplace lending to finance their home improvement projects, elective medical procedures, special occasions (such as weddings and vacations), and to start small businesses. People are taking out personal loans not just to get their finances in order, but to make their lives happier and less stressful. One example is Cheri of Grand Rapids, Michigan. She’s a single mom who adopted two children from Haiti. After an expensive four-year adoption process, she struggled financially. With a loan through Prosper, Cheri was able to get back on track.

To help reach new types of borrowers, Prosper Marketplace announced that it acquired American Healthcare Lending in February, now Prosper Healthcare Lending. This incredible group of people, who are now Prosper Marketplace  employees, are bringing awareness of marketplace lending as a consumer-friendly financing option for medical procedures. Prosper Marketplace also partnered with a consortium of community banks through Western Independent Bankers to enable them to offer customers access to affordable consumer loans.

We are continuing to build the Prosper team and are always looking for great people. We currently have more than 30 job openings listed on our site, so if you are interested in being a part of what we are building, apply or tell a friend. We have almost 400 employees between San Francisco, Phoenix and Salt Lake City, and will continue to grow well beyond that.

We’re grateful to our loyal borrower members, investors and partners and look forward working with all of you in the future.

Aaron Vermut
CEO, Prosper Marketplace

05/21/2015 by in Borrowers, Featured, Lenders, Prosper News

 

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Notice: Blogs and other materials posted on or linked from this page that use the name "Prosper" generally use that name to refer to Prosper Marketplace, Inc. if published before January 31, 2013 and to refer to Prosper Funding LLC if published on or after February 1, 2013.