Prosper Readies for Relaunch

April 24th, 2009 - 3 comments - Filed Under - by Mark Morozov

Apparently, the third amendment’s the charm. Having filed a third amendment to its S-1 filing with the SEC just last week, Prosper has added a maintenance message to the header of its site, stating that the site will be offline all weekend for “system upgrades and configuration changes”.

Prosper Maintenance Message, 23 April 2009 This is probably an indication that Prosper is preparing their site to relaunch with the loan securitization model pioneered by Lending Club in 2008. Other expected changes include the introduction of “open market” loans (pre-funded by other originators) and a secondary market offered through Folio Investing.

Aside from Lending Club and Pertuity Direct, who operates a mutual fund-like P2P lending model, a relaunch would make Prosper the 3rd active peer lending business in the US. Neither Loanio, who shut down shortly after Prosper last fall, nor IOU Central, who opened in Canada but then announced plans to open in the US, has even filed a registration statement with the SEC.

Follow @P2PLendingNews

http://forums.go4reward.com Investar

I’m especially heartened to find the authoritative “P2P Lending News” on board with those who anticipate Prosper’s re-launch! Persons who enjoy minutiae resulting in semi-informed speculation on the future course of Prosper Marketplace might enjoy these special studies taking place on SCP Prosper Investing and Finance Forum:

The Prosper ‘Quiet’ Diary – millstones and milestones

Prosper 50 State Progress – Blue Sky – Lend Trade Borrow
dave

I’m thrilled… Well… Cautiously Optimistic, I guess.

I am concerned that the SEC is going to throw me to the wolves. Lending Club has been closed to me – I don’t earn 70k+ per year (At least not for another year or so) and I don’t have a net worth of 70k. So, I’m stuck watching other people earn easy money giving loans to people like me, but I can’t get involved as a lender/investor because of some arbitrary rule allegedly set by the SEC.

Now it seems that Prosper may be forced to do the same thing. What the hell is that?!? I’m allowed to blow my entire paycheck on lottery cards, but I can’t take the risk on a couple tiny, prudent investments every month?
http://forums.go4reward.com Investar

Footnote Information in “Prosper 50 State Progress” (linked in previous comment) shows the 70k income limit, and other limits, are a ‘state thing’ not imposed by the SEC. While LendingClub threw a net worth blanket on everyone’s fire, Prosper is attempting to satisfy ‘prickly state’ regulators on a state by state basis. The study shows just four states demanding special treatment at the time Prosper filed their Amended SEC Registration. Check the study to see where you potentially stand.