Comments on: Prosper’s Latest SEC Filing Excludes Open Market http://www.p2plendingnews.com/2009/06/prospers-sec-filing-excludes-open-market/ Staying on top of the person to person lending revolution Tue, 17 Aug 2010 12:47:51 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Don’t Count Loanio Out; Files S-1 with SEC | P2P Lending News http://www.p2plendingnews.com/2009/06/prospers-sec-filing-excludes-open-market/comment-page-1/#comment-200 Don’t Count Loanio Out; Files S-1 with SEC | P2P Lending News Tue, 23 Jun 2009 06:35:36 +0000 http://www.p2plendingnews.com/?p=210#comment-200 [...] regulatory filing is similar to the first steps taken by Lending Club, Prosper, and IOU Central. (To date, only Lending Club has been approved.) Unlike Prosper and Lending Club, [...] [...] regulatory filing is similar to the first steps taken by Lending Club, Prosper, and IOU Central. (To date, only Lending Club has been approved.) Unlike Prosper and Lending Club, [...]

]]> By: Investar http://www.p2plendingnews.com/2009/06/prospers-sec-filing-excludes-open-market/comment-page-1/#comment-182 Investar Thu, 04 Jun 2009 12:06:44 +0000 http://www.p2plendingnews.com/?p=210#comment-182 As with all things regulatory, it is not so much what <i>will</i> happen but what <i>could</i> happen. Without a "floor" over-eager lenders <i>could</i> bid their investment to a zero return (negative even, after servicing fees). We recently witnessed a near-occurance of just that phenomenon in the US Treasury markets. The Prosper reality is that limits proposed for highest rated AA and A borrowers will be essentially irrelevant. But funding history on mid-grade borrowers says a "floor" there will interfere with exuberance during the bidding process on occasion. Bear in mind, Prosper's "Credit Grade" letter has been abandoned in favor of a "Credit Rating" letter. Certain borrowers formerly classed as grade B and C are now rated D, E, or HR. Some mid-grade loans easily achieved the 12% to 17% range. Understand the difference between the old "Credit Grade" letters and the new "Prosper Rating" letters. SCP Prosper Forum discussion: <a href="http://forums.go4reward.com/lenders/prosper-credit-grade-vs-prosper-rating-vs-prosper-score/" rel="nofollow">Prosper Credit Grade vs Prosper Rating vs Prosper Score</a>. As with all things regulatory, it is not so much what will happen but what could happen. Without a “floor” over-eager lenders could bid their investment to a zero return (negative even, after servicing fees). We recently witnessed a near-occurance of just that phenomenon in the US Treasury markets. The Prosper reality is that limits proposed for highest rated AA and A borrowers will be essentially irrelevant. But funding history on mid-grade borrowers says a “floor” there will interfere with exuberance during the bidding process on occasion. Bear in mind, Prosper’s “Credit Grade” letter has been abandoned in favor of a “Credit Rating” letter. Certain borrowers formerly classed as grade B and C are now rated D, E, or HR. Some mid-grade loans easily achieved the 12% to 17% range.

Understand the difference between the old “Credit Grade” letters and the new “Prosper Rating” letters. SCP Prosper Forum discussion: Prosper Credit Grade vs Prosper Rating vs Prosper Score.

]]> By: P2P Lending News http://www.p2plendingnews.com/2009/06/prospers-sec-filing-excludes-open-market/comment-page-1/#comment-181 P2P Lending News Wed, 03 Jun 2009 20:42:26 +0000 http://www.p2plendingnews.com/?p=210#comment-181 Thanks for the additional details, Investar. The floor on borrower interest rates is quite interesting. Maybe they are trying to protect lenders from rates that are too low? (Although it's hard to imagine a AA loan going below 2.89%.) Thanks for the additional details, Investar. The floor on borrower interest rates is quite interesting. Maybe they are trying to protect lenders from rates that are too low? (Although it’s hard to imagine a AA loan going below 2.89%.)

]]> By: Investar http://www.p2plendingnews.com/2009/06/prospers-sec-filing-excludes-open-market/comment-page-1/#comment-180 Investar Wed, 03 Jun 2009 20:22:07 +0000 http://www.p2plendingnews.com/?p=210#comment-180 A few more items of interest: The <a href="http://forums.go4reward.com/the-prosper-marketplace/the-prosper-'quiet'-diary-millstones-and-milestones/msg2112/#msg2112" rel="nofollow">SCP Prosper Forum, Prosper "Quiet" Diary</a> notes text in the section "Security Interest" is altered. Prosper tried various methods to protect lenders by segregating borrower notes from other assets and liabilities. Apparently nothing worked. References to unique lender protection have been dropped. Forum members at <a href="http://loanforums.techccu.com/prosper/index.php?topic=1497.0" rel="nofollow">Prosper and Lending Club Loan Discussions</a> note a "floor" on borrower interest rates is introduced. The auction model for setting rates is not entirely abandoned but Prosper now proposes both top and bottom thresholds, apparently an element important to the SEC. And the gang at the <a href="http://www.prospers.org/" rel="nofollow">Pro$pers.org</a> forum offer a plethora of opinion including laments about too much government intervention — the frustrated Chris Larson's point exactly. A few more items of interest:

The SCP Prosper Forum, Prosper “Quiet” Diary notes text in the section “Security Interest” is altered. Prosper tried various methods to protect lenders by segregating borrower notes from other assets and liabilities. Apparently nothing worked. References to unique lender protection have been dropped.

Forum members at Prosper and Lending Club Loan Discussions note a “floor” on borrower interest rates is introduced. The auction model for setting rates is not entirely abandoned but Prosper now proposes both top and bottom thresholds, apparently an element important to the SEC.

And the gang at the Pro$pers.org forum offer a plethora of opinion including laments about too much government intervention — the frustrated Chris Larson’s point exactly.

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