Author Topic: first-velocity-association?  (Read 4310 times)

ThinleyWangchuk

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first-velocity-association?
« on: August 16, 2016, 04:37:38 PM »
Does anyone know why the all new notes originate from a user called "first-velocity-association"? 
« Last Edit: August 16, 2016, 04:47:50 PM by ThinleyWangchuk »

TheLittleDuke

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Re: first-velocity-association?
« Reply #1 on: September 15, 2016, 08:30:01 AM »
I just sent an email to support at Prosper asking the same thing! 

The user profile shows "Investor, Institutional Lender" -- I wonder if this is some kind of "loan packager" like a "debt consultant" who is doing some pre-screening work and getting some of the rake?
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TheLittleDuke

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Re: first-velocity-association?
« Reply #2 on: September 15, 2016, 04:37:02 PM »
Prosper Client Services (Prosper Marketplace Support)
Sep 15, 13:27 PDT

That would be an institutional investor that acquires our note listings prior to placing them on the fractional market for investing. The institutional investors have the option to fully fund a loan or release it to the fractional market for our retail investors to fund.

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Rob L

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Re: first-velocity-association?
« Reply #3 on: September 15, 2016, 05:30:02 PM »
WOW! What an eye opener for me. Really a very big deal.
Prosper gives institutions first option to buy a loan before passing it along retail investors if they don't want it!
Why would I want a loan that a professional has taken a pass on? Talk about retail "unfriendly".
I've NEVER bought a note in a loan that was listed W before F from LC.
Am I over reacting? I find this simply outrageous and I am angry.

Fred93

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Re: first-velocity-association?
« Reply #4 on: September 15, 2016, 07:24:36 PM »
That would be an institutional investor that acquires our note listings prior to placing them on the fractional market for investing. The institutional investors have the option to fully fund a loan or release it to the fractional market for our retail investors to fund.

Seems like Prosper needs to make some additional disclosure on this practice.




TheLittleDuke

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Re: first-velocity-association?
« Reply #5 on: September 15, 2016, 08:56:10 PM »
Agreed -- what surprised me was that this was on a "new issue", not a trading platform purchase.

I get the need for institutional investors helping to create liquidity but this is a little odd IMHO
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brycemason

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Re: first-velocity-association?
« Reply #6 on: September 16, 2016, 09:34:01 PM »
Perhaps it's the originating bank. Hard to believe the fractional/whole allocation would be anything but random.

Rob L

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Re: first-velocity-association?
« Reply #7 on: September 17, 2016, 12:06:39 PM »
Its been around since Feb this year.
FYI:  I have notes in my account with the loan's Initial List Status either W or F that show initial ownership by first-velocity-association.
Their date bought is usually about 5 days before mine. Note price is the same for both entries. Wonder how that works?




TheLittleDuke

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Re: first-velocity-association?
« Reply #8 on: September 17, 2016, 02:59:02 PM »
Yeah how are they making money unless they are doing a lot of the early leg work to vet the borrower?

Seems like that's the only "value add" here -- and if so, then are they taking the 1% up front and then prosper is collecting servicing fee's on the back end?

I've often wondered about "credit clean up" or "debt consolidation" services -- if they might be leverage P2P lending sites

-dvd
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Rob L

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Re: first-velocity-association?
« Reply #9 on: September 17, 2016, 05:50:25 PM »
Seems like Prosper needs to make some additional disclosure on this practice.

Have you emailed them about this?

Peter

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Re: first-velocity-association?
« Reply #10 on: September 19, 2016, 02:33:57 PM »
I followed up with Prosper management about this because I was very curious myself. Just spoke to them this morning and they say that first-velocity-association is actually the code name for Prosper Funding LLC. That is the bankruptcy remote vehicle that holds all the loans for fractional and many whole loan investors.
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Fred93

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Re: first-velocity-association?
« Reply #11 on: September 19, 2016, 04:06:10 PM »
I followed up with Prosper management about this because I was very curious myself. Just spoke to them this morning and they say that first-velocity-association is actually the code name for Prosper Funding LLC. That is the bankruptcy remote vehicle that holds all the loans for fractional and many whole loan investors.

You know that is very different from what their support email said. 

Did you read that mail to them?  They're having a Hillary Clinton moment here.

ThinleyWangchuk

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Re: first-velocity-association?
« Reply #12 on: September 20, 2016, 01:49:06 PM »
They told me that it was an institution.  Also keep in mind that the lender has been a 'Member Since: Feb-02-2016.'
« Last Edit: September 20, 2016, 01:52:19 PM by ThinleyWangchuk »

Peter

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Re: first-velocity-association?
« Reply #13 on: September 24, 2016, 08:29:51 AM »
You know that is very different from what their support email said. 

I mentioned that and they told me that the support person was mistaken. I am not sure why the date shows Feb 2016 but they said this has been going on since 2013.
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ThinleyWangchuk

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Re: first-velocity-association?
« Reply #14 on: October 03, 2016, 08:12:05 PM »
Interesting.  "first-velocity-association" has been renamed "Prosper-Funding-LLC"