Comments on: Prosper Fee Updates: Separating alignment from lenders http://www.personalloanportfolio.com/222/prosper-lender-impact-fee-changes/ Lending Club and Prosper.com Experience Sat, 20 Feb 2010 21:03:27 -0600 http://wordpress.org/?v=2.9.1 hourly 1 By: Personal Loan Portfolio http://www.personalloanportfolio.com/222/prosper-lender-impact-fee-changes/comment-page-1/#comment-1183 Personal Loan Portfolio Fri, 10 Oct 2008 03:19:55 +0000 http://www.personalloanportfolio.com/?p=222#comment-1183 Brian, thanks for taking the time to add your two cents and I am glad you found my post valuable. completely agree with you that Prosper should work more on servicing, but unfortunately the model that they have created favors origination. I don't see myself putting more money in until Prosper improves the default rate and reduces fraud. Brian, thanks for taking the time to add your two cents and I am glad you found my post valuable. completely agree with you that Prosper should work more on servicing, but unfortunately the model that they have created favors origination. I don’t see myself putting more money in until Prosper improves the default rate and reduces fraud.

]]> By: brianguy http://www.personalloanportfolio.com/222/prosper-lender-impact-fee-changes/comment-page-1/#comment-1174 brianguy Wed, 01 Oct 2008 01:24:12 +0000 http://www.personalloanportfolio.com/?p=222#comment-1174 this is the best analysis I've read of the current Prosper situation. I too started on Prosper for the same reasons and at the same time as you. the only reason I'm currently lending is to complete the diversification of my portfolio, so that any one bad loan won't have quite the same impact and potential of dragging down performance. I think in the long run, Prosper has (very recently) just dug their own grave. at first I did not understand the gravity of the increased closing fees. now I see it as an immense problem. only if Prosper uses these increased fees for operational funds in the short term, but more importantly AGGRESSIVELY step up collection efforts before and after charge-off / default loans, and to take the beneficiaries of these bad loans to court will their marketplace survive and "prosper". I too await an alternative lending venue, and I'm very patient. I'm interested in keeping some of my money aimed toward P2P lending (as long as I can beat a high-interest savings by a percentage point or two) for the long run. Prosper likes to bill themselves as the "eBay of lending". that's fine, but they're nowhere near as secure in their position and a lot more likely to be cast by the wayside because of their increasingly careless business model and policies. SERVICING IS MORE IMPORTANT (for ALL parties involved) THAN ORIGINATING. FOCUS ON SERVICING AND COLLECTION, OR EVERYTHING ELSE IS WORTHLESS! this is the best analysis I’ve read of the current Prosper situation. I too started on Prosper for the same reasons and at the same time as you. the only reason I’m currently lending is to complete the diversification of my portfolio, so that any one bad loan won’t have quite the same impact and potential of dragging down performance.

I think in the long run, Prosper has (very recently) just dug their own grave. at first I did not understand the gravity of the increased closing fees. now I see it as an immense problem. only if Prosper uses these increased fees for operational funds in the short term, but more importantly AGGRESSIVELY step up collection efforts before and after charge-off / default loans, and to take the beneficiaries of these bad loans to court will their marketplace survive and “prosper”.

I too await an alternative lending venue, and I’m very patient. I’m interested in keeping some of my money aimed toward P2P lending (as long as I can beat a high-interest savings by a percentage point or two) for the long run.

Prosper likes to bill themselves as the “eBay of lending”. that’s fine, but they’re nowhere near as secure in their position and a lot more likely to be cast by the wayside because of their increasingly careless business model and policies.

SERVICING IS MORE IMPORTANT (for ALL parties involved) THAN ORIGINATING. FOCUS ON SERVICING AND COLLECTION, OR EVERYTHING ELSE IS WORTHLESS!

]]>