Monday, October 8, 2007

More Details On Upcoming Changes

More details emerged over the weekend on the new Prosper features hinted at in a Yahoo financial news article and confirmed by Prosper. In addition to his Q & A with Prosperous Land, Prosper Andrew posted details to the forums and answered a few questions. The thread adds color to previously known information on the two key features: default rate estimation and a portfolio tool. In addition, some other nuggets slipped out. Prosper will be changing the loan servicing fees on AA and A grade loans:

1) I see that in Slice 2 of your Balanced Plan example, the servicing fee is listed as 1% -- Is Prosper planning on raising the servicing fee (since it is currently 0.5% on AA and A loans)?

Yes, we are planning to change the servicing fee on AA to 0% (yes, 0%), and on A to 1%.

And, in a different thread, he reiterated that they're working on a secondary market to allow lenders to resell loans. He emphasized that the limitations on the roll-out were regulatory.

Hi guys,

We are working on building a secondary market. And I know we have been saying that for several months, but the primary hurdle is regulatory, which, unfortunately, is not something that we have direct control over.

Anyway, it is still one of our top priorities. Just thought you should know that we haven't forgotten about it.

And, of course, the screenshots.

And then for the portfolio tool:

Update: The images were briefly lost due to operator error. It's been fixed now.

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