Finding Default Information

RateLadder has been collecting default sale information from various lenders (pensioner and L5 come to mind) to get a picture of the default recovery for lenders. This is a bit labor intensive and requires the cooperation of other lenders. I've recently spotted a quicker way to collect default statistics.

The Prosper Marketplace Performance page provides all the necessary information. After doing a search, look under Performance Data at Defaults (D) and Net Defaults (ND).

The amount recovered for the lender after fees is (D - ND). To calculate the recovered percentage, use (D-ND)/D. I've pulled a few of the favorites just for fun (I'm odd like that), but I didn't have the patience to do a cross-correlation with auto funding.

Criteria	AA	A	B	C	D	E	HR
All	14.2%	19.9%	15.8%	19.2%	11.5%	9.9%	8.5%
Homeowners	n/a	19.9%	22.8%	21.2%	19.7%	18.7%	21.7%
Non Homeowners	14.2%	19.9%	12.1%	14.7%	8.5%	7.2%	6.7%

The AA grade is slanted because there's only 1 loan that's gone through a default sale. The A grade is just a freaky coincidence (and an implication that home ownership doesn't matter here). I know this much - if I dared mess with E and HR loans, I'd rate home ownership pretty highly.