RateLadder spotted that Prosper Andrew requested a loan:
This is a $10,000 Loan that started at 15%. It is currently @ 7%. While I have every faith that Andrew will repay the loan. I have a hard time justifying the current rate. The highest yeilding 3 year CD is currently an APY 5.41% from Eloan. I will try to snipe $50 from my standing orders and bid $50 at 5.5%.
Prosper Lending Review talks about the interest rate cap in Pennsylvania
Pennsylvania, for example, is the sixth most populous state with over 12 million people. Based on their state lending laws, Prosper only allows loans to borrowers residing in Pennsylvania at 6% and below. Rather than helping borrowers get a good interest rate the practical effect of this legislation has been to prevent borrowers from obtaining a loan. According to LendingStat's loan breakdown by state, only 21 loans have been made to Pennsylvania borrowers ranking them a distant #42 despite their large population. Almost all of these 21 loans are for the minimum loan amount - $1,000.
ProProsper has been updated to use the newly released Listing-Loan pairing:
A nugget that I missed from the Mid August Prosper Upgrade is that the loan and listing objects in the API are now tied together with a Prosper provided listing key on the loan object. While I had achieved 99.8% loan to listing matching, I was still missing a few.One borrower gets creative to work around his state's rate cap and get a loan (hat tip RateLadder):
Let’s make this interesting. I have a loan listing on Prosper. It is capped at 11% because of a state cap in Virginia. 11% is not competitive, so there is a high probability that the loan will NOT be funded. How can we get this funded? How about a double interest incentive:
Watch out for falling home sales in California:
DataQuick will report SoCal home sales in about a week (NAR reports U.S. August existing home sales on Sept 25th), but the following story in the LA Business Journal suggests sales fell off a cliff: August Home Sales Take a Major Plunge