Prosper Changes Bidding Guidance & Portfolios Too
In addition to the large changes announced yesterday, Prosper swept a few changes in more quietly. Specifically, they tweaked with their portfolio slices and drastically increased the number of bins used for lender bidding guidance.
First, the portfolios. The conservative and balanced portfolios had the loan criteria tweaked. A quick comparison shows that the conservative portfolio had the minimum bid rate increased by 1% for slices 1 - 3 and the balanced portfolio had the minimum bid rate increased by 1% for slices 1 - 2. This tweak looks intended to raise the average ROI for the portfolio.
On the bidding guidance side, Prosper is now using 103 different categories to provide bidding guidance, up from the 67 established back in January. All 103 will be reproduced below for record keeping since Prosper doesn't maintain a history. The bidding guidance is getting sufficiently fine-grained that there will probably be little wiggle between a specific loan's anticipated performance and the nearest bin. Rats. Lenders looking for an edge will need to go searching elsewhere.
| Segment | Credit grade | Criteria |
|---|---|---|
| 1 | AA | No automatic funding, loan amount <$5K, <=20% DTI |
| 2 | AA | No automatic funding, loan amount <$5K, >=20% DTI |
| 3 | AA | No automatic funding, loan amount $5K-$10K, <=20% DTI |
| 4 | AA | No automatic funding, loan amount $5K-$10K, 20-40% DTI |
| 5 | AA | No automatic funding, loan amount $5K-$10K, >=40% DTI |
| 6 | AA | No automatic funding, loan amount $10,001-$15K |
| 7 | AA | No automatic funding, loan amount $15,001-$25K, <=20% DTI |
| 8 | AA | No automatic funding, loan amount $15,001-$25K, >=20% DTI |
| 9 | AA | Automatic Funding Only, loan amount <=$10K, <=20% DTI |
| 10 | AA | Automatic Funding Only, loan amount <=$10K, >=20% DTI |
| 11 | AA | Automatic Funding Only, loan amount $10,001-$25K |
| 12 | AA | Borrowers with no extended credit data |
| 13 | A | No automatic funding, loan amount <$5K, 0 inquiries |
| 14 | A | No automatic funding, loan amount <$5K, 1+ inquiries, 0 now delinquent |
| 15 | A | No automatic funding, loan amount <$5K, 1+ inquiries, 1+ now delinquent |
| 16 | A | No automatic funding, loan amount $5K-$7,499, 0 now delinquent, 0 inquiries |
| 17 | A | No automatic funding, loan amount $5K-$7,499, 0 now delinquent, 1+ inquiries |
| 18 | A | No automatic funding, loan amount $5K-$7,499, 1+ now delinquent |
| 19 | A | No automatic funding, loan amount $7,500-$10,000 |
| 20 | A | No automatic funding, loan amount $10,001-$15,000, <=20% DTI |
| 21 | A | No automatic funding, loan amount $10,001-$15,000, >=20% DTI |
| 22 | A | No automatic funding, loan amount $15,001-$25,000, <=20% DTI |
| 23 | A | No automatic funding, loan amount $15,001-$25,000, 20-40% DTI |
| 24 | A | No automatic funding, loan amount $15,001-$25,000, >=40% DTI |
| 25 | A | Automatic Funding Only, loan amount <$5K |
| 26 | A | Automatic Funding Only, loan amount $5K-$9,999 |
| 27 | A | Automatic Funding Only, loan amount $10,000-$14,999 |
| 28 | A | Automatic Funding Only, loan amount $15,000-$25,000 |
| 29 | A | Borrowers with no extended credit data |
| 30 | B | No automatic funding, loan amount <$5K, <=40% DTI, 0-2 inquiries |
| 31 | B | No automatic funding, loan amount <$5K, <=40% DTI, 3+ inquiries |
| 32 | B | No automatic funding, loan amount <$5K, >=40% DTI |
| 33 | B | No automatic funding, loan amount $5K-$10K, <=20% DTI, 0-2 inquiries |
| 34 | B | No automatic funding, loan amount $5K-$10K, <=20% DTI, 3+ inquiries |
| 35 | B | No automatic funding, loan amount $5K-$10K, 20-40% DTI, 0 now delinquent, 0-2 inquiries |
| 36 | B | No automatic funding, loan amount $5K-$10K, 20-40% DTI, 0 now delinquent, 3+ inquiries |
| 37 | B | No automatic funding, loan amount $5K-$10K, 20-40% DTI, 1+ now delinquent |
| 38 | B | No automatic funding, loan amount $5K-$10K, >=40% DTI |
| 39 | B | No automatic funding, loan amount $10,001-$15K, 0 now delinquent |
| 40 | B | No automatic funding, loan amount $10,001-$15K, 1+ now delinquent |
| 41 | B | No automatic funding, loan amount $15,001-$25K, <=40% DTI, 0-1 inquiries |
| 42 | B | No automatic funding, loan amount $15,001-$25K, <=40% DTI, 2+ inquiries |
| 43 | B | No automatic funding, loan amount $15,001-$25K, >=40% DTI |
| 44 | B | Automatic Funding Only, loan amount <$5K |
| 45 | B | Automatic Funding Only, loan amount $5K-$15K, 0-1 inquiries |
| 46 | B | Automatic Funding Only, loan amount $5K-$15K, 2+ inquiries |
| 47 | B | Automatic Funding Only, loan amount $15,001-$25K |
| 48 | B | Borrowers with no extended credit data |
| 49 | C | No automatic funding, loan amount <=$5K, <=20% DTI, 0 inquiries |
| 50 | C | No automatic funding, loan amount <=$5K, <=20% DTI, 1+ inquiries, 0 now delinquent |
| 51 | C | No automatic funding, loan amount <=$5K, <=20% DTI, 1+ inquiries, 1+ now delinquent |
| 52 | C | No automatic funding, loan amount <=$5K, 20-40% DTI, 0 inquiries |
| 53 | C | No automatic funding, loan amount <=$5K, 20-40% DTI, 1+ inquiries |
| 54 | C | No automatic funding, loan amount <=$5K, >=40% DTI |
| 55 | C | No automatic funding, loan amount $5,001-$7,499, <=40% DTI, 0-2 now delinquent, 0-1 inquiries |
| 56 | C | No automatic funding, loan amount $5,001-$7,499, <=40% DTI, 0-2 now delinquent, 2+ inquiries |
| 57 | C | No automatic funding, loan amount $5,001-$7,499, <=40% DTI, 3+ now delinquent |
| 58 | C | No automatic funding, loan amount $5,001-$7,499, >=40% DTI |
| 59 | C | No automatic funding, loan amount $7.5K-$10K, 0-1 inquiries |
| 60 | C | No automatic funding, loan amount $7.5K-$10K, 2-5 inquiries |
| 61 | C | No automatic funding, loan amount $7.5K-$10K, 6+ inquiries |
| 62 | C | No automatic funding, loan amount $10,001-$15K, 0-4 inquiries |
| 63 | C | No automatic funding, loan amount $10,001-$15K, 5+ inquiries |
| 64 | C | No automatic funding, loan amount $15,001-$25K |
| 65 | C | Automatic Funding Only, loan amount <=$5K, 0 inquiries |
| 66 | C | Automatic Funding Only, loan amount <=$5K, 1+ inquiries |
| 67 | C | Automatic Funding Only, loan amount $5,001-$7,499 |
| 68 | C | Automatic Funding Only, loan amount $7.5K-$14,999 |
| 69 | C | Automatic Funding Only, loan amount $15K-$25K |
| 70 | C | Borrowers with no extended credit data |
| 71 | D | No automatic funding, loan amount <$3K, 0 now delinquent, 0-1 inquiries |
| 72 | D | No automatic funding, loan amount <$3K, 0 now delinquent, 2+ inquiries |
| 73 | D | No automatic funding, loan amount <$3K, 1+ now delinquent |
| 74 | D | No automatic funding, loan amount $3K-$7,499, 0 now delinquent, 0-2 inquiries |
| 75 | D | No automatic funding, loan amount $3K-$7,499, 0 now delinquent, 3+ inquiries |
| 76 | D | No automatic funding, loan amount $3K-$7,499, 1-2 now delinquent |
| 77 | D | No automatic funding, loan amount $3K-$7,499, 3+ now delinquent |
| 78 | D | No automatic funding, loan amount $7.5K-$10K, 0 now delinquent |
| 79 | D | No automatic funding, loan amount $7.5K-$10K, 1+ now delinquent |
| 80 | D | No automatic funding, loan amount $10,001-$25K |
| 81 | D | Automatic Funding Only, loan amount <=$3K |
| 82 | D | Automatic Funding Only, loan amount $3,001-$7.5K |
| 83 | D | Automatic Funding Only, loan amount $7,501-$25K |
| 84 | D | Borrowers with no extended credit data |
| 85 | E | No automatic funding, loan amount <$5K, 0 now delinquent |
| 86 | E | No automatic funding, loan amount <$5K, 1-2 now delinquent |
| 87 | E | No automatic funding, loan amount <$5K, 3+ now delinquent |
| 88 | E | No automatic funding, loan amount $5K+ |
| 89 | E | Automatic funding only, loan amount <$5K, 0 now delinquent |
| 90 | E | Automatic funding only, loan amount <$5K, 1-2 now delinquent |
| 91 | E | Automatic funding only, loan amount <$5K, 3+ now delinquent |
| 92 | E | Automatic funding only, loan amount $5K+ |
| 93 | E | Borrowers with no extended credit data |
| 94 | HR | No automatic funding, loan amount <$3K, 0-1 now delinquent, <=20% DTI |
| 95 | HR | No automatic funding, loan amount <$3K, 0-1 now delinquent, >=20% DTI |
| 96 | HR | No automatic funding, loan amount <$3K, 2+ now delinquent |
| 97 | HR | No automatic funding, loan amount $3K+, 0-2 now delinquent |
| 98 | HR | No automatic funding, loan amount $3K+, 3+ now delinquent |
| 99 | HR | Automatic funding only, loan amount <$3K, 0-2 now delinquent |
| 100 | HR | Automatic funding only, loan amount <$3K, 3+ now delinquent |
| 101 | HR | Automatic funding only, loan amount $3K+, 0 now delinquent |
| 102 | HR | Automatic funding only, loan amount $3K+, 1+ now delinquent |
| 103 | HR | Borrowers with no extended credit data |
1 comment:
"A quick comparison shows that the conservative portfolio had the minimum bid rate increased by 1% for slices 1 - 3 and the balanced portfolio had the minimum bid rate increased by 1% for slices 1 - 2. This tweak looks intended to raise the average ROI for the portfolio."
These PP slices were bumped up by 1% because Prosper raised lending fees on AA loans by 1%. :(
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