It has been some time since I have opened my Prosper account. Finally, I logged on a few minutes ago to transfer out money again because I want keep my account free of cash since the SEC cease and desist order against Propser and the quiet period have increased the possibility that Prosper could fold. I have been worried about the default rate since that order. The SEC actions combined with all the talk on the internet of how many loans on Prosper go into default probably trigger some people to feel stupid for actually paying on their Prosper loans despite the obligation and the impact to the credit score.
So how are my Prosper Marketplace P2P loans fairing? My loans’ average loan credit grade is an A minus so I have not been chasing 30%+ low-credit-score loans. Currently, I have three late loans out of 16 loans, so 18% of my Prosper loans are late.
Update: See the bottom of this post for an update. From the time I drafted this post until a few days later, another loan is now late.
According to Eric’s CC, my estimated return is NEGATIVE 4.4%. LendingStats estimates that my Prosper ROI is between negative 4.9% and negative 9.8%. Below are the screen shots to capture the point in time statistics of my Prosper return.
I must thank the unofficial Prosper forums. Despite occasionally being a bit caustic, the members there have gathered enough information and been passionate enough in their opposition that they prevented me from losing more money on the Prosper Marketplace P2P Lending platform because I probably would have waded in a little faster without their commentary.
If you are thinking about P2P lending, read the advice to new lenders.
How is your return on investment with Prosper? Are you happy with it?
UPDATE:
Before I had time to take all the screenshots, write up a description and click the publish button on this post, a fourth of my Prosper loans is now late. It will likely to continue to go downhill from here.
Prosper Lending Portfolio Update (Jan 12, 2009)
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