Interesting Disclaimer For E & HR Loan

I was writing up another post and clicked to bid on a random loan and discovered an interesting treat. Prosper has added disclaimers for E and HR loans to the bidding page. We have previously highlighted the default risk present in auto funded loans. Prosper expands on this and provides interesting statistics that include the effects of prior delinquent accounts.

First, the E graded loans:

Impact of additional credit attributes

For Prosper loans made to E borrowers with origination dates of Jun-Nov 2006, as of Jan 2007.

Criteria	Estimated default rate
Borrowers with 2 or fewer delinquent accounts at time of listing who did not choose automatic funding	9.2%
Borrowers with 3 or more delinquent accounts at time of listing who chose automatic funding	35.3%

And now the HR graded loans:

Impact of additional credit attributes

For Prosper loans made to HR borrowers with at least 5 years credit history and origination dates of Jun-Nov 2006, as of Jan 2007.

Criteria	Estimated default rate
Borrowers with 5 or fewer delinquent accounts at time of listing who did not choose automatic funding	17.5%
Borrowers with 6 or more delinquent accounts at time of listing who chose automatic funding	52.1%

Update: Also covered on Prosper Lending Review