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Prosper Introduces Sixth-Generation Credit Model

By Eric Thaller

We are very pleased to announce that starting Thursday evening, August 13th, Prosper will begin using an updated credit model, PMI 6.  We have many goals at Prosper, but first and foremost, we are focused on ensuring that the pricing, credit, risk and underwriting model we use is constantly improving. This benefits all of our customers – retail investors, institutional investors and our borrower members.

Advances in the credit model – from the early days, to PMI 4 in 2013, PMI 5 in 2014 and now PMI 6 – have enabled us to provide access to more loans to credit-worthy people for a variety of purposes, including consolidating high-interest debt. Since inception, more than $4 billion in loans have originated through the Prosper platform, and the company continues to grow as more people turn to Prosper for an easier and smarter way to borrow money.

The launch of PMI 6 underscores our commitment to ongoing improvement, and will enable us to continue our growth while maintaining loan quality.

Investors that have questions about PMI 6 can email the Prosper Investor Services team at investorteam@prosper.com.

08/12/2015 by in Featured, Lenders, Prosper Spotlights

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

 

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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.