In the commentary the main point is the focus of lenders on higher credit categories: "…At the same time, lenders on Prosper are exhibiting rational behavior by steering their bids toward borrowers in the higher credit categories and being far more cautious about chasing higher rates offered by subprime borrowers. Evidence of this flight to safety is seen in Prosper's mix of funded borrowers. For example, the subprime category accounted for only 9 percent of loans funded in August 2007, a marked decrease from August 2006 and the 2007 year-to-date average of 25 percent and 14 percent, respectively. What remains to be seen is whether lenders on Prosper will start placing less weight on homeownership as a factor in their bidding strategies…"
When studying the figures careful attention should be given to the definitions. HR loans are completely excluded from the Estimated Annual Return on Prosper Select Index and the Average Borrower Rates on Prosper Select Loans table. Furthermore loans that did not fit criteria on delinquincies, credit inquiries and DTI are also not included in these tables.
Prosper.com now makes the link between loans and listings available. With this new feature now everyone can see the status of the loan payments of every borrower. On the borrower profile page there is now a "Loans" tab:
Previously only lenders invested in a loan could directly see, which status it had. All others had to use 3rd party tools like Wiseclerk.com. Those had to program their own matching algorithms since no key matching loans to listings was published by Prosper.
Prosper has always been the p2p lending service that made most data available about its market.
I will have to look into which parts of Wiseclerk.com I need to rebuild to make use of the new information linking listings to loans.
Further improvements that Prosper announced include reporting to Transunion and enabling borrowers to repay directly using money in their Prosper account.
This reduces file sizes to only 5 to 10 MB per day. You can download a sample file here (8 MB) – please right click with your mouse on the link and use "save as" to save the file on your computer.
Wiseclerk.com scripts reliably run since April 2006 without any major downtimes. Should for any reason a script fail to run on a day, the next produced incremental file will include all data since last run (in this case it would contain data for two days).