Author Topic: Confused with the definition of borrower rate of Prosepr API data  (Read 433 times)

Allen

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I have a question about Prosper API data. Before 2009, Prosper operates in a eBay auction style. When I exam the listing data I downloaded from Prosper API, I am confused with the definition of the variable ‘borrower_rate’. Is this the interest rate set by the borrower at the beginning of the auction or it is the ultimate interest rate the borrower has to pay? If it is the ultimate interest rate, why expired listings also have this information availabel?

Can anyone help me? Thanks!

xybb

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Re: Confused with the definition of borrower rate of Prosepr API data
« Reply #1 on: December 12, 2017, 06:36:52 PM »
According to the data description, this is the rate the borrower pays if the loan were to close at this point in time. I assume the time stamp depends on when the platform modified the listings. The borrower rate should be weakly lower than the initial borrower rate which is the maximum rate that the borrower would accept.

Rob L

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Re: Confused with the definition of borrower rate of Prosepr API data
« Reply #2 on: December 12, 2017, 08:09:10 PM »
Sorry, but I simply gotta ask why in the world anyone would care? I really want to know where this is coming from.
Before my time but my understanding is that Prosper back then was a disaster because lenders had no clue how to underwrite the loans and under priced them tremendously through the bidding /auction process. Ultimately Prosper had to "save lenders from themselves" by setting interest rates. This was not entirely altruistic as their lenders would no doubt have quickly thrown in the towel leaving Prosper with a product with far fewer customers.