Prosper dropped a large bomb this morning with their latest site upgrade. The headline topic: 36% interest rates everywhere . Besides being miffed that they couldn't have announced it one day earlier and saved me some time, I find this to be a phenomenal development. Prosper has been limited in their growth due to the state usury limits, and this should increase the borrower volume, especially in the portfolio-worthy credit ranges.
Prosper also rolled out a number of other features at the same time
- Lower instant transfer limits. As RateLadder has observed, this should help those folks who worry about getting paid interest on their idle cash.
- The second loan criteria has been tweaked. It now depends on credit grade as well as loan payment history.
- 1% service fee for AA loans is back. Apparently they think they have enough volume now.
- All loans will list for 7 days. If borrowers are in a hurry, they'll have to turn on auto-funding.
- The Prosper website layout was tweaked. I'm not a fan. If you want to compare, the Prosper Blog still has the old layout (that may change as soon after Andrew reads this).
- There are supposedly other less published changes for us to dig out.
 - Void in Texas and South Dakota. Surprisingly, this isn't void in Utah.