mmaverick's Blog

SCP Prosper, Investing, And Finance Forums Has some current information on Lending Club and how a simular SEC filing has affected them.

Also Investar, a Prosper lender Has been following Prosper's situation and Here are the highlights from a recent newsletter.

THE "QUIET" PERIOD
• October 15, 2008; Prosper shut down the marketplace.
• November 24, 2008; The Securities and Exchange Commission (SEC) stated the loans were actually securities and they weren't licensed to sell them.
• December 5, 2008; Prosper filed a new proposal to sell regulated securities with the SEC, similar to LendingClub's previous proposal.
• January 15, 2009; 90 days in the dark of a "Quiet" period. It took LendingClub six months to trek through thier filing. Prosper should have an easier time. SEC's due process is 60 days minimum so it'll be atleast another 45 days.
Following SEC approval each state must respond to Prosper's filing, a simultaneous application for approval in all 50 states. Each state has its own final say in lending and borrowing through Prosper for it's residents.

ABC 15 news coverage of the AIG party

AIG executives party again, luxury resort trip comes after additional $40 billion bailout

The latest show of ignorant budgeting by AIG executives has caused an uproar among people and politicians. After asking for an additional $40 billion bailout AIG executives threw a party at the Pointe Hilton Squaw Peak Resort and Spa in Arizona. They took great efforts to keep the gathering, secret.  The AIG logo was not allowed as top executives held another luxurious "conference".

Form S-1 is an SEC filing used by public companies to register their securities with the U.S. Securities and Exchange Commission (SEC). The S-1 contains the basic business and financial information on an issuer with respect to a specific securities offering. Investors may use the prospectus to consider the merits of an offering and make educated investment decisions. A prospectus is one of the main documents used by an investor to research a company prior to an initial public offering (IPO).

In anticipation of the downturn in the economy, many credit card companies are reducing credit lines, denying more credit card applications, and increasing interest rates.

-feed - prosper blog: prospe

Current lending activity seems improper seeing as how the banks are being bailed out with tax money. Considering the fact 90% of the money banks make come from median or below average income families (the ones with marks on thier credit) a general and across the board cut back will not help bank profits. Nor will it boost the economy, I think the Government planned on banks continuation to lend as a step in improving economy.

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Lending Club is a social lending network where members lend and borrow money from each other at better rates, bypassing the banks.

Simple interest loans from $10,000 to $100,000 - Credit decision in minutes - Money in your account as soon as today! 24-84 month terms

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Prosper uses Experian for your credit grade:

Each of the  consumer reporting companies are required to provide you with a free copy of your credit report, once every 12 months. The three companies have set up a central website and a toll-free telephone number, through which you can order your free annual report. To order, go to www.annualcreditreport.com, or dial 1-877-322-8228.

Addresses to send Disputes
-Equifax         P.O. Box 740241 Atlanta, GA 30374       1-800-685-1111
-Experian       P.O. Box 2104 Allen, TX 75013              1-888-397-3742
-Trans Union  760 W. Sproul Rd.Springfield, PA 19064  1-800-888-4213 

You can dispute mistakes or outdated items for free. Under the FCRA, both the consumer reporting company and the information provider are responsible for correcting inaccurate or incomplete information in your report. Tell the consumer reporting company, in writing, what information you think is inaccurate, request that it be removed or corrected. Send your letter by certified mail, “return receipt requested,” so you can document what the consumer reporting company received.

Top 10 credit mistakes.

Ok Prosper has modified its original statement of
"If you're a borrower seeking a loan, you will still be able to create a new loan listing, which we will endeavor to fulfill through alternative sources."
To that of
"As the appropriate securities authorities may consider a new loan listing to constitute the offer of a security, we are unable to post new loan listings on our site until our registration statement becomes effective."

So not only is lending halted but so is borrowing until the filing is complete.

This should give you a basic Idea of how the 'secondary market' will work Click here

Anyone have any predictions or comments?

Personally I feel waht will happen is old lenders will sell risky notes to new lenders who see a chance for high interest loans. Then the old lenders will bid only on AA, A and B loans. New lenders will not have money to bid on listings since they sunk all their money into the secondary market. Prosper still makes 1-3% on every transaction. the number of C-HR loans being originated drop by 85%.

You may have noticed that lending is not currently available this morning on Prosper. Prosper is pausing lending activity due to the SEC filing. They are looking to add a secondary market to the loans, this will allow lenders to buy or sell loans after they are funded.

This could allow you to 'cash out' if you want to sell off your loans and get your money out, it will also allow lenders to free up cash for current bidding. Prosper will have more info when the filing process is complete.

If you're a borrower with an existing loan, you still are bound by your borrower agreement and will be unaffected by the process. If you are a borrower seeking funding, you are able to create a new loan listing and Prosper will attempt to fund it through alternative means.

See the full Prosper statement here

Official Prosper forums: The name says it all!

Prosper Discussion Forums: Information on other forums and such about prosper. 

Trying to help others get ahead! AA through HR welcome.

For Borrowers:
I will make all efforts to assist in getting you funded, endorsing you and helping you with your listing. My goal is simple: I want to help borrowers get ahead, maybe even become lenders.

How to reorganize overwhelming debt

Consolidation calculator, how much will you save?

Top 10 credit mistakes people make

If interested in Group Membership:
Supply the following information with your Join Request:
-Household net income: source and frequency.
-Monthly household expenses.
-Information on current debts and credit past (explain the flaws).
-Be prepaired to validate information if you request a loan.


Loan Requests:
-If you only do the bare minimum to create a listing, don't be surprised if your loan is not funded.
-Make sure to include at least one photo with your loan request.
-Tell people your story; How did you get into debt? Why do you want to borrow money? How soon can you pay off your loan?
-Expect and be prepared to validate and verify information listed in your loan request.-Do not use Automatic funding let the loan run the full duration to get better interest rates, if you get anxious and pull out early you pay more.
-You should keep the loan for at least 6 months and mention any intent to pay early in the listing.
-Any friend that bids on your listing should include the rate they bid at.
-If you don't succeed the first time, don't give up! Simply revise your listing.
-Use this calculator and reference the results page in your listing if your loan is a consolidation loan


For Lenders:
I want to make sure you feel comfortable investing in the future of my group members and will attempt to work with you in anyway needed so that you are willing to join and invest in my group members. I my self will invest in my group members when funds are available so that you can see that I am not asking you to do something i would not do myself.

% of loans late based on different data inputs
Fantasy Prosper, try your luck before you buy in!

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Our first loan: Paying off some high interest credit cards!!
Debt consolidation $2,700.00 @ 16.20%
D credit grade, 40% DTI, Sep-26-2008

This is a place for Lenders and borrowers to meet share information, tips and suggestions. All strategies, tips and suggestions expressed are provided as a learning tool for you and performance or validity of each statement or comment should be evaluated on your own. Nothing posted is to be taken as legal or binding truth only as ancedotal information. Comments, complaints & testimonials are encouraged.

This site will also host any information vetted by me in regards to member listings.

Have a question about prosper itself look through Prosper.com's FAQ 

If you still have questions, create a topic with the question as the heading and someone will try and answer.