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Topics - SeattleSun

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Investors - P / Prosper Making Some Needed Changes for Retail Investors
« on: February 11, 2014, 09:51:24 AM »

Very important read for us "retail" guys.  This is very good news.


I am starting to understand credit scores better.  It goes like this.  One of the factors that determines your score is credit mix, aka  having different types of credit.  Transferring a credit card balance to another low interest card doesn't increase credit mix, but using Prosper and Lending Club does because they are considered installment credit, which is different from credit card revolving credit loans.  Additionally, moving CC debt to an installment loan brings down credit card utilization, which has a LARGE impact on one's score.  This makes getting a zero percent balance transfer offer less desirable than a Prosper/Lending Club installment loan. 

So does getting approved for a Prosper or LC loan improve your credit score?


Investors - P / Does Prosper now have a 3rd release time?
« on: February 05, 2014, 08:33:36 PM »

Noting loans being released between the "official" 9 am PST and 5 pm PDT lately.

Today there was a big dump at 2:22 pm PT.

Do we know have a 3rd release time or are they just trying to screw up the "bots".


WOW!  Somebody touching the third rail of consumer lending.

I wonder how long before Elizabeth Warren cracks down on P2P.

I thought I saw this article in Peter weekend news summary but can't find it anymore.  Wonder who called to have it taken down? 

Suggest you read it quick and print a copy for it disappears from Lending Memo too.

The Joy of Redlining: Why I Never Lend Money to Florida
January 16, 2014 - by Simon Cunningham

Investors - P / Prosper Loan Quality for 2013
« on: January 11, 2014, 04:13:00 PM »
Loan Quality for 2013: Prosper
By Angela Ceresnie
January 6, 2014

Full article

Given the substantial growth of Online Lending over the last year, one outstanding question has been whether the industry can maintain the rapid growth while still committing to the underwriting standards that have made this asset class such a great investment.  From our analysis, we believe Prosper has not compromised its standards in order to grow.  Whether we’re looking at external factors (ScoreX, Income), Orchard’s model, or Prosper’s model – we see that the quality has remained consistently high.  We look forward to doing a similar analysis for LendingClub in a future blog post.


Let's face it if we could get 5.5% in an FDIC insured account many of us wouldn't be here.  The Fed has Mom and Pop saver force way out on the risk curve and the stretch for yield often ends badly.

Additionally I suspect the Pension Funds and Insurance Companies are the institutional whales moving into P2P as they have been hurt badly by the ZIRP.



Dec 16, 2008 to Dec 16, 2013 Happy 5th Birthday ZIRP!

The Consequences of the Fed's Zero Interest Rate Ppolicy

1) The large losses from the continued financial repression of interest rates falls on SAVERS and PENSION FUNDS/INSURANCE COMPANIES companies.

Simply put, ultra-low interest rates mean that those who have saved money in whatever form will be getting less return on that money from safe, fixed-income investments. We're talking about rather large sums of money, as we will see. Ironically, this translates into a loss of consumption power when the Federal Reserve is supposedly concerned about consumption and requires increased savings at a time when the Fed is trying to boost demand. This is robbing Peter to favor an already well-off Paul.

A new report from the McKinsey Global Institute examines the distributional effects of these ultra-low rates. It finds that there have been significant effects on different sectors in the economy in terms of income interest and expense. From 2007 to 2012, governments in the Eurozone, the United Kingdom, and the United States collectively benefited by $1.6 trillion, both through reduced debt-service costs and increased profits remitted by central banks (see the chart below). Nonfinancial corporations – large borrowers such as governments – benefited by $710 billion as the interest rates on debt fell. Although ultra-low interest rates boosted corporate profits in the United Kingdom and the United States by 5% in 2012, this has not translated into higher investment, possibly as a result of uncertainty about the strength of the economic recovery, as well as tighter lending standards. Meanwhile, households in these countries together lost $630 billion in net interest income, although the impact varies across groups. Younger households that are net borrowers have benefited, while older households with significant interest-bearing assets have lost income.

McKinsey estimates that households in the US have lost a cumulative $360 billion. Meanwhile, banks and businesses have done very well.

This loss of household income requires tightened spending by retirees and means that those facing retirement have to spend less and save more in order to make sure they will have enough to live on. It also requires the older generation to work longer, which is demonstrably keeping jobs away from the younger generation, as I've documented clearly in past letters.

ZIRP means that the pension funds and insurance companies responsible for your annuities are making significantly less on their portfolios than they had hoped. There are lots of ways to express this loss, but I will offer three charts that will give us some indication of the magnitude of the loss over a period of 30 years.

Most public pension funds work with some variation of the traditional 60-40 portfolio, that is to say, 60% in equities and 40% in fixed income. They also target anywhere from 7 to 8.5% returns from their portfolios over the next 30 years in order to be able to generate the money they will need to pay retirees. The amount of assets they have today in their accounts is quite small in comparison to future requirements, and thus they are depending upon the magic of compound interest in order to be able to deliver the needed pension funds to their clients.

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Here's One Thing That's Actually Getting Much Worse In America   

2013 was about slow but accelerating economic growth in America as consumers brushed off tax hikes, sequestration, a government shutdown, and broad fiscal brinksmanship.

Home prices continued to rebound and spending rose as unemployment rates dropped and people borrowed more. In fact the consumer is so strong that economists see 4% GDP growth in Q4.

And just today we learned that business investment was accelerating.

Unfortunately, there is one corner of the economy that is actually getting worse. And it's the sub-economy populated by college grads.

While the unemployment rate for those with college degrees continues to be much lower than for those without, that gap has been narrowing sharply.

College grads are among those falling out of the labor force the fastest.

And as college tuition and fees inflate like crazy, real earnings for grads are actually falling.

Unable to make payments on their crushing student loan debts, grads of increasingly gone delinquent on their obligations.

"Delinquencies have trended lower across nearly every type of consumer credit category," wrote economists from Wells Fargo Securities. "The one exception to this has been the ongoing rise in student loan delinquencies. The continued upward trend is reflective of the unique characteristics of the student loan market—such as the lack of credit history for most borrowers and the government sector being the dominant provider—as well as the weak recovery in jobs and wages for younger workers that have left increasingly large debt burdens more difficult to bear."

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P2P-Picks / Pod Cast #3 - Bryce Mason of P2P Picks on Credit Models
« on: December 24, 2013, 08:15:35 PM »

Felt it best to have any discussion of the Pod Cast here as it is more poster friendly than the main web site IMO.

Five Star stuff here IMO, listen to the Pod Cast at link below.



Bryce Mason of P2P Picks on Credit Models
by Peter Renton on December 23, 2013

I first corresponded with Bryce Mason about two years ago; he reached out to me soon after he developed his credit model for investing in Lending Club. He was one of the first people to do a rigorous statistical analysis of completed Lending Club loans. He produced an interesting chart on default rates that I shared in early 2012. Bryce has also written a couple of guest posts on Lend Academy this year.

He is the founder of the P2P Picks credit modeling site which he describes as “the power of a hedge fund for your p2p portfolio”. In this third session of the Lend Academy Podcast I talked with Bryce about his site, his credit models, where is taking his business and much more.

In this podcast you will learn:

Bryce’s background and how it has enabled him to develop sophisticated investing models.

Why he loved p2p lending when he first heard about it in the very early days of Prosper.

Why he feels more confident about p2p lending than his other investments.

How his approach is different from simple filtering of loans.

What he thinks of external macroeconomic data sources.

Why he believes that P2P Picks is helpful for all individual investors.

How the algorithm adjusts for changes in underwriting policies.

How often he updates his credit model and what changes with each new iteration.

How much of an improvement the P2P Picks credit model gives above the average.

The number of subscribers that are using P2P Picks to invest.

Details of the new P2P Picks API and the honor system he has created.

What Bryce is doing for his institutional clients.

What is coming down the road with P2P Picks in 2014.

When the Prosper model is going to be available.

What P2P Picks has in common with a major rating agency liked Moody’s.

Bryce’s site is and you can sign up there for free today to take advantage of the picks generated by his credit models.

Podcast here:

Investors - LC / LendingRobot Announces Peer Lending Investor Service
« on: December 18, 2013, 01:58:16 PM »
LendingRobot Announces Peer Lending Investor Service
New Service Automates Investing for Any Lending Club Investor

Seattle, Washington (PRWEB) December 18, 2013

Today, LendingRobot, a provider of investment automation and data services for the rapidly growing peer lending market, announced the launch of the LendingRobot investment service. The investment automation service helps Lending Club investors to save time and automatically fund the loans matching their investment strategy.

Lending Club is a rapidly growing peer-to-peer marketplace for consumer credit, having originated over $3 billion in personal loans. According to Reuters, Lending Club is expected to file for an initial public offering in 2014.

LendingRobot founders discovered the most lucrative loans are funded very quickly, and even when dedicating significant time it is hard for individual investors to constantly reinvest their portfolios. LendingRobot evolved from efforts by the founders to automate their personal peer lending investments.

“New loans appear on Lending Club four times a day, seven days a week, but many are funded in less than 30 seconds,” said Gilad Golan, founder and CEO of LendingRobot. “So we created a service that allows investors to specify their desired investment criteria in advance and automatically fund loans that meet these criteria as soon as they become available.”

Now open to the general public, the LendingRobot service helps investors successfully fund those loans in highest demand and/or best meet their personal investment criteria. Users define what kind of loans they want to invest in using a simple yet powerful set of filters. Unique to LendingRobot, they can also define a cascading set of rules to invest simultaneously in different loans profiles. The cloud-based service then tirelessly works to invest and reinvest according to those filters.

Investors’ funds always remain in their Lending Club accounts and LendingRobot has no access to investor funds. LendingRobot provides a daily activity report and lets investors modify their investment criteria at any time. LendingRobot enables better investment selection, reduces the amount of time required and ensures idle cash is continuously reinvested.

The service has been in private beta since September, earning raves from early users. “LendingRobot makes investing in peer-to-peer loans easy and efficient. It allows me to find the exact loans I want without having to sort them manually. Great product!” says Brendan B., an early user. According to Don B., another early LendingRobot user, and Lending Club investor since 2008, “LendingRobot has changed my relation with Lending Club, in less than one week”.

LendingRobot, which exits beta today, charges a fee based on the investments successfully funded by the service. There are no set up or fixed costs.

About LendingRobot
LendingRobot is a provider of investment automation and data services for the peer lending market. LendingRobot does not provide investment advice. For contacts and more information, please visit

Lending Club is a registered trademark of Lending Club Inc. LendingRobot is a trademark of Algorithmic, Inc.

Investors - P / Gone in 60 seconds!
« on: December 15, 2013, 12:40:31 AM »
60% of all Prosper loans funded with in 60 seconds!

Distribution of time to invest

The distribution of the time to invest in Prosper loans has changed a lot over the past two years.  Below, we show the percentage of loans that were fully invested in within 1 minute, 1 hour, 1 day or over 1 day.  Historically, most loans were invested in more than a day, but in the last 3 quarters we see that the number of loans fully invested within a minute growing very quickly – now comprising almost 60% of total loans.


Online Direct Lending has received greatly increased attention from investors over the past year, leading to a situation where the demand for loans outstrips their supply.  With the most sophisticated investors automating their investment strategies, the many loans are being purchased quicker.  60% of listings are purchased within a minute of posting – and this number is looking to increase!  Historically, the gulf between quick-funding and slow-funding loans is vast, and as the market matures, any investor seeking to build a large and high-quality portfolio will need to pursue a highly-automated investment strategy.

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Investors - P / Tuesday 10 Dec - No new loan posting at 9am PT?
« on: December 10, 2013, 12:17:30 PM »

9:15am PT and no new loan postings.

This appears to be a recurring 'normal' event and may not be even news worthy?

But does anybody see new loans for Tuesday morning.

Yawn, maybe I should just go back to bed.

« on: December 03, 2013, 01:40:56 PM »
OK who wants to explain what this really means.   TIA



To the Holders of:

Borrower Payment Dependent Notes


NOTICE IS HEREBY GIVEN, pursuant to Section 6.08 of the Indenture (the “Indenture”), dated as of January 22, 2013, by and between  Prosper Funding LLC and Wells Fargo Bank, National Association, as Trustee, that Wells Fargo Bank, National Association (“Wells Fargo”) has resigned as trustee under the Indenture.

Pursuant to Section 6.08 of the Indenture, CSC Trust Company of Delaware, (“CSC Trust”), a banking corporation duly organized and existing under the laws of Delaware, has accepted appointment as trustee under the Indenture.  The address of the designated corporate trust office of the successor Trustee is 2711 Centerville Road, Suite 220, Wilmington, Delaware 19808.

Wells Fargo’s resignation as trustee and CSC Trust’s appointment as successor trustee were effective as of the opening of business on November 13, 2013.


December 2, 2013
Very truly yours,



Investors - P / Only 27 Loans on the Prosper Site Monday AM?
« on: November 25, 2013, 11:56:32 AM »
I have never seen it this low before plus noted since last week very few new posting at the feeding times.

Q. Most all going to the whole loan program?

Q. Loan filter clogged with?

Q. Computer system problems?

Q. A glut of lenders?

Peter what's "the story"?  TIA

Edit: Around two dozen new loans on Monday morning bringing the available listing into the high 40s or low 50s.

Investors - P / Wednesday's Notes Posted at ~7pm Pacific
« on: November 20, 2013, 10:32:07 PM »


Investors - P / Wednesday 11/20/13 - 5pm Listing Missing.
« on: November 20, 2013, 08:13:02 PM »
Looks like the beat goes on.

No activity in my account all day and with 31 notes pending usually a few orginate per day.

Guess everyone at Prosper had a "computer day off", the equivilant of a "snow day"in Silicon Ally?

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