Prosper Adjusts Portfolio, Lender Bidding Guidance Criteria
Just as they had done last month, Prosper has yet again refreshed the portfolio and lender bidding guidance statistics. Unlike last time, these changes are large and significant. Both are now making extensive use of DTI and loan amount, two known risk factors that Prosper has not previously controlled.
For the portfolios, Prosper has added additional standing order criteria based on DTI, Loan Amount, employment, and 10 year default criteria. Based on how it has been sliced, I am intensely curious to see if Prosper can deliver the necessary loan volume to satisfy lenders who use portfolios. Another oddity is that the same standing order is used in the "Moderate" portfolio as well as the "Aggressive" portfolio (Credit = D, Non Autofunded, 0-1 Inquiries, Amount <= $9999, DTI <= 70%, yada yada - I'll note that this is of 10am (CST) today - they'll probably change it). They had previously done a reasonable job keeping the portfolios after different sets of loans. On the lender bidding guidance side, Prosper has expanded the number of slices to 67, and chopped up heavily based on DTI and loan amount. For the sake of posterity (and that I expect it to change again in a few months), here's the full list
Segment | Credit grade | Criteria |
---|---|---|
1 | AA | No automatic funding, DTI <=40%, loan amount <$10K |
2 | AA | No automatic funding, DTI >=40%, loan amount <$10K |
3 | AA | No automatic funding, 0-1 inquiries, loan amount $10K+ |
4 | AA | No automatic funding, 2+ inquiries, loan amount $10K+ |
5 | AA | Automatic funding only, loan amount <$10K |
6 | AA | Automatic funding only, loan amount $10K+ |
7 | AA | Borrowers with no extended credit data |
8 | A | No automatic funding, loan amount <$7.5K, 0 now delinquent |
9 | A | No automatic funding, loan amount <$7.5K, 1+ now delinquent |
10 | A | No automatic funding, loan amount $7.5K+, 0 now delinquent, 0-1 inquiries |
11 | A | No automatic funding, loan amount $7.5K+, 0 now delinquent, 2+ inquiries |
12 | A | No automatic funding, loan amount $7.5K+, 1+ now delinquent |
13 | A | Automatic funding only, loan amount <$5K |
14 | A | Automatic funding only, loan amount $5K-$9999 |
15 | A | Automatic funding only, loan amount $10K+ |
16 | A | Borrowers with no extended credit data |
17 | B | No automatic funding, loan amount <$7.5K, 0 now delinquent, 0-2 inquiries |
18 | B | No automatic funding, loan amount <$7.5K, 3+ inquiries |
19 | B | No automatic funding, loan amount <$7.5K, 1+ now delinquent, 0-2 inquiries |
20 | B | No automatic funding, loan amount $7.5K+, 0 now delinquent, 0-1 inquiries |
21 | B | No automatic funding, loan amount $7.5K+, 0 now delinquent, 2+ inquiries |
22 | B | No automatic funding, loan amount $7.5K+, 1+ now delinquent |
23 | B | Automatic funding only, loan amount <$10K, 0 now delinquent, 0-1 inquiries |
24 | B | Automatic funding only, loan amount <$10K, 0 now delinquent, 2+ inquiries |
25 | B | Automatic funding only, loan amount <$10K, 1+ now delinquent |
26 | B | Automatic funding only, loan amount $10K+ |
27 | B | Borrowers with no extended credit data |
28 | C | No automatic funding, loan amount <$7.5K, 0 inquiries, <=40% DTI |
29 | C | No automatic funding, loan amount <$7.5K, 1-2 inquiries, <=40% DTI |
30 | C | No automatic funding, loan amount <$7.5K, 3+ inquiries, <=40% DTI |
31 | C | No automatic funding, loan amount <$7.5K, >=40% DTI |
32 | C | No automatic funding, loan amount $7.5K+, 0-1 inquiries |
33 | C | No automatic funding, loan amount $7.5K+, 2+ inquiries |
34 | C | Automatic funding only, loan amount <$7.5K, 0 now delinquent, <=20% DTI |
35 | C | Automatic funding only, loan amount <$7.5K, 1+ now delinquent, <=20% DTI |
36 | C | Automatic funding only, loan amount <$7.5K, 20-40% DTI |
37 | C | Automatic funding only, loan amount <$7.5K, 40%+ DTI |
38 | C | Automatic funding only, loan amount $7.5K+ |
39 | C | Borrowers with no extended credit data |
40 | D | No automatic funding, loan amount <$10K, 0 now delinquent, 0-1 inquiries |
41 | D | No automatic funding, loan amount <$10K, 1+ now delinquent, 0-1 inquiries |
42 | D | No automatic funding, loan amount <$10K, 2+ inquiries |
43 | D | Automatic funding only, loan amount <$10K, 0 now delinquent, 0-2 inquiries |
44 | D | Automatic funding only, loan amount <$10K, 1+ now delinquent, 0-2 inquiries |
45 | D | Automatic funding only, loan amount <$10K, 3+ inquiries |
46 | D | No automatic funding, loan amount $10K+ |
47 | D | Automatic funding only, loan amount $10K+ |
48 | D | Borrowers with no extended credit data |
49 | E | No automatic funding, loan amount <$5K, 0 now delinquent |
50 | E | No automatic funding, loan amount <$5K, 1-2 now delinquent |
51 | E | No automatic funding, loan amount <$5K, 3+ now delinquent |
52 | E | No automatic funding, loan amount $5K+ |
53 | E | Automatic funding only, loan amount <$5K, 0 now delinquent |
54 | E | Automatic funding only, loan amount <$5K, 1-2 now delinquent |
55 | E | Automatic funding only, loan amount <$5K, 3+ now delinquent |
56 | E | Automatic funding only, loan amount $5K+ |
57 | E | Borrowers with no extended credit data |
58 | HR | No automatic funding, loan amount <$3K, 0-1 now delinquent, <=20% DTI |
59 | HR | No automatic funding, loan amount <$3K, 0-1 now delinquent, >=20% DTI |
60 | HR | No automatic funding, loan amount <$3K, 2+ now delinquent |
61 | HR | No automatic funding, loan amount $3K+, 0-2 now delinquent |
62 | HR | No automatic funding, loan amount $3K+, 3+ now delinquent |
63 | HR | Automatic funding only, loan amount <$3K, 0-2 now delinquent |
64 | HR | Automatic funding only, loan amount <$3K, 3+ now delinquent |
65 | HR | Automatic funding only, loan amount $3K+, 0 now delinquent |
66 | HR | Automatic funding only, loan amount $3K+, 1+ now delinquent |
67 | HR | Borrowers with no extended credit data |
2 comments:
This makes a lot of sense, I though that the original criteria were way too loose. What you really want is to tighten the criteria to the point that you get just the number of loans each month for the money you have to invest. I'll expand upon this idea in a future post on my blog.
In case you're interested in why the bidding guidance was changed, check out the warm n fuzzy details on my shiny new (somewhat) blog...
Post a Comment