Comments on: Prosper Registers With SEC to Create a $500 Million Secondary Market in Peer-to-Peer Loans http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/ Startup and Technology News Mon, 13 Oct 2008 23:18:04 +0000 http://wordpress.org/?v=2.5.1 By: Fynanz: How Students Spell Peer-to-Peer Loans http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-2045169 Fynanz: How Students Spell Peer-to-Peer Loans Wed, 19 Mar 2008 12:36:31 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-2045169 [...] launched quietly on Monday. It wants to apply the peer-to-peer lending model (see Prosper, Zopa, Lending Club, and Qifang in China) to student loans. Right now, only students who are [...] [...] launched quietly on Monday. It wants to apply the peer-to-peer lending model (see Prosper, Zopa, Lending Club, and Qifang in China) to student loans. Right now, only students who are [...]

]]> By: Zopa goes State Side with Federal backing (allegedly) « The thing about useful stuff is http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-2029222 Zopa goes State Side with Federal backing (allegedly) « The thing about useful stuff is Mon, 10 Mar 2008 18:07:03 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-2029222 [...] with new loans growing to as much as $1 billion in 2010 and $9 billion in 2017. Prosper already registered an S-1 with the SEC and reported $96.4 million in [...] [...] with new loans growing to as much as $1 billion in 2010 and $9 billion in 2017. Prosper already registered an S-1 with the SEC and reported $96.4 million in [...]

]]> By: The News before The News http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1721825 The News before The News Fri, 02 Nov 2007 16:41:18 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1721825 <strong>P2P lending levels up…...</strong> At the end of a previous post on microfinance and P2P lending I mentioned the US firm named Prosper. Now TechCrunch reports that they have submitted a proposal to the SEC for a secondary market for the loans that Prosper helps originate. I wonder if an... P2P lending levels up……

At the end of a previous post on microfinance and P2P lending I mentioned the US firm named Prosper. Now TechCrunch reports that they have submitted a proposal to the SEC for a secondary market for the loans that Prosper helps originate. I wonder if an…

]]> By: Rex Dixon http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1718451 Rex Dixon Thu, 01 Nov 2007 15:53:23 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1718451 Lending Club is still the new player on the block, but we are doing well - and - for those that haven't paid attention - we have been outside of Facebook now for a bit, and had some news yesterday: http://rexduffdixon.com/?p=3185 Rex Lending Club is still the new player on the block, but we are doing well - and - for those that haven’t paid attention - we have been outside of Facebook now for a bit, and had some news yesterday:

http://rexduffdixon.com/?p=3185

Rex

]]> By: Tom http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1718049 Tom Thu, 01 Nov 2007 13:49:21 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1718049 I'm a Prosper lender and blogger. Lenders have asked for a secondary market for some time. This is an interesting development which I'm sure we will watch closely. You may find some of our analysis useful if you want to lend or borrow: http://prosperlending.blogspot.com Also, like other posters have mentioned. The forums are a good source of information. I’m a Prosper lender and blogger. Lenders have asked for a secondary market for some time. This is an interesting development which I’m sure we will watch closely.

You may find some of our analysis useful if you want to lend or borrow:
http://prosperlending.blogspot.com

Also, like other posters have mentioned. The forums are a good source of information.

]]> By: micfo http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1717266 micfo Thu, 01 Nov 2007 09:21:48 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1717266 Alll transactions are in US dollars, this really sucks since value of dollars is falling day by day. Alll transactions are in US dollars, this really sucks since value of dollars is falling day by day.

]]> By: Crunchazoom http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1717134 Crunchazoom Thu, 01 Nov 2007 07:15:00 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1717134 Erick, I think you may have missed a brilliant regulatory innovation by Prosper with this filing. Prosper is facilitating the sale of registered debt by individuals. This is completely new and very powerful. See my blog for more details: finantech.wordpress.com. Erick, I think you may have missed a brilliant regulatory innovation by Prosper with this filing. Prosper is facilitating the sale of registered debt by individuals. This is completely new and very powerful. See my blog for more details: finantech.wordpress.com.

]]> By: Steve http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1716683 Steve Thu, 01 Nov 2007 03:04:11 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1716683 I have had a great experience lending on Prosper. I've put about $10k to work and am making a net 10%. The place to find out in a truly unbiased way who is making money on Prosper is not the forums - which all just people with an axe to grind - it's http://www.lendingstats.com. I study the loans that the top lenders are making - the people who are making 17%+ in net returns - and I try and learn from them. There are some lenders lending only to sub-prime borrowers and have no defaults. They have obviously figured it out. It's clear you should look a layer deeper beyond the credit score itself to some of the more granular data. The secret to great returns and lower defaults seems to be there. I have had a great experience lending on Prosper. I’ve put about $10k to work and am making a net 10%. The place to find out in a truly unbiased way who is making money on Prosper is not the forums - which all just people with an axe to grind - it’s http://www.lendingstats.com. I study the loans that the top lenders are making - the people who are making 17%+ in net returns - and I try and learn from them. There are some lenders lending only to sub-prime borrowers and have no defaults. They have obviously figured it out. It’s clear you should look a layer deeper beyond the credit score itself to some of the more granular data. The secret to great returns and lower defaults seems to be there.

]]> By: StrPrpn http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1716448 StrPrpn Thu, 01 Nov 2007 01:13:16 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1716448 I was in love with the idea of Prosper when I first heard of it. I lent a few thousand dollars to various folks for various reasons. More than 90% of them look likely to pay it back. Some of the folks I lent to were fraudsters, and others were just liars. Many were honest folks who have never been late, but not nearly as many as you might expect. Prosper spends days sometimes verifying borrower information before approving loans and dispersing funds, but it's not enough. There are still a number of wrinkles to iron out. As a lender, you agree not to make any attempt to contact delinquent borrowers. So you have to put all your faith in the collections agencies Prosper contracts with. As a lender, you see credit report details and a person's self-composed loan request, but you're basically throwing your money into a black box and hoping everything is as it seems. They do work hard to avoid perverse incentives, though that's after creating several as they worked through the trial and error of the early days. To be fair, during the past 4 months I've only logged in to take my money out as the 90% pay it back. Maybe they've made sweeping changes that have improved things. If so, go to town. If not, be very careful with your money and spend a lot of time in the forums before you loan any money. I was in love with the idea of Prosper when I first heard of it. I lent a few thousand dollars to various folks for various reasons. More than 90% of them look likely to pay it back. Some of the folks I lent to were fraudsters, and others were just liars. Many were honest folks who have never been late, but not nearly as many as you might expect. Prosper spends days sometimes verifying borrower information before approving loans and dispersing funds, but it’s not enough. There are still a number of wrinkles to iron out.

As a lender, you agree not to make any attempt to contact delinquent borrowers. So you have to put all your faith in the collections agencies Prosper contracts with. As a lender, you see credit report details and a person’s self-composed loan request, but you’re basically throwing your money into a black box and hoping everything is as it seems. They do work hard to avoid perverse incentives, though that’s after creating several as they worked through the trial and error of the early days.

To be fair, during the past 4 months I’ve only logged in to take my money out as the 90% pay it back. Maybe they’ve made sweeping changes that have improved things. If so, go to town. If not, be very careful with your money and spend a lot of time in the forums before you loan any money.

]]> By: David Mackey http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1716355 David Mackey Thu, 01 Nov 2007 00:36:08 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1716355 I like Prosper as an idea, but the interest rates seem quite a bit high. I like Prosper as an idea, but the interest rates seem quite a bit high.

]]> By: Sipboy http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1716231 Sipboy Wed, 31 Oct 2007 23:33:54 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1716231 Prosper is going to suffer in the near future. With the dollar weakening on the global marketplace and inflation continuing to be an issue, unsecured lending is going to take a hit. I am a pawnbroker by trade and I see on a daily basis how this economy is crushing people. I think peer to peer lending is great, but without security, it is very risky to a lender with no experience in the trade. I am trying to bring collateral peer to peer lending to web 2.0 with my website http://www.auctionbuyback.com. I believe people will find it better to lend to someone they consider a peer if they have security. If sites like prosper don't grasp this concept, the lenders will suffer big losses. If you check their lender forums, you will understand what I mean. Prosper is going to suffer in the near future. With the dollar weakening on the global marketplace and inflation continuing to be an issue, unsecured lending is going to take a hit. I am a pawnbroker by trade and I see on a daily basis how this economy is crushing people. I think peer to peer lending is great, but without security, it is very risky to a lender with no experience in the trade. I am trying to bring collateral peer to peer lending to web 2.0 with my website http://www.auctionbuyback.com. I believe people will find it better to lend to someone they consider a peer if they have security. If sites like prosper don’t grasp this concept, the lenders will suffer big losses. If you check their lender forums, you will understand what I mean.

]]> By: Alex http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1716019 Alex Wed, 31 Oct 2007 22:01:17 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1716019 Prosper is great. I have loaned a little bit of money. $500 million is a very aggressive goal considering that the time it takes to get a loan to the market place, bid and close is fairly slow. Also, with other groups also vying for the ability to loan it's going to make it extremely challenging.- no different from seeing "deal flow". Richard Branson's recent acquisition could end up being the one to play catch up to. There seems to be more flexibility in that business model, greater geography reach and very deep pockets to build out the business. I'll read the filing tonight but Isn't an S1 filing to go public? Prosper is great. I have loaned a little bit of money. $500 million is a very aggressive goal considering that the time it takes to get a loan to the market place, bid and close is fairly slow. Also, with other groups also vying for the ability to loan it’s going to make it extremely challenging.- no different from seeing “deal flow”. Richard Branson’s recent acquisition could end up being the one to play catch up to. There seems to be more flexibility in that business model, greater geography reach and very deep pockets to build out the business.

I’ll read the filing tonight but Isn’t an S1 filing to go public?

]]> By: yasam http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715957 yasam Wed, 31 Oct 2007 21:32:49 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715957 its better to create blogs related to loans similarly i created technology blog http://lapnol.blogspot.com its better to create blogs related to loans similarly i created technology blog http://lapnol.blogspot.com

]]> By: fred http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715940 fred Wed, 31 Oct 2007 21:24:21 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715940 Prosper sucks for lenders. Do your homework before lending a dime through this site that actually extends the hard-luck stories of borrowers, which has nothing to do when evaluating a person's ability to repay the loan. Lame model. Prosper sucks for lenders. Do your homework before lending a dime through this site that actually extends the hard-luck stories of borrowers, which has nothing to do when evaluating a person’s ability to repay the loan.

Lame model.

]]> By: Rajan Tawate http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715845 Rajan Tawate Wed, 31 Oct 2007 20:53:14 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715845 I wonder if P2P lending is coming under FDIC regulations. http://www.meetingflex.com Social Networking + Video -Crap I wonder if P2P lending is coming under FDIC regulations.

http://www.meetingflex.com
Social Networking + Video -Crap

]]> By: Wil http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715819 Wil Wed, 31 Oct 2007 20:40:04 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715819 Unfortunately, Prosper has done a really poor job of servicing their lenders. Their collections process is a mess and most lenders with established loan portfolios (>6 months and >20 loans) are either losing money or barely making more than they would in a savings account. I encourage anyone looking at Prosper to check out Prosper's own lender forums. It doesn't bode well for the long-term survival of the company. Unfortunately, Prosper has done a really poor job of servicing their lenders. Their collections process is a mess and most lenders with established loan portfolios (>6 months and >20 loans) are either losing money or barely making more than they would in a savings account.

I encourage anyone looking at Prosper to check out Prosper’s own lender forums. It doesn’t bode well for the long-term survival of the company.

]]> By: Scott Rafer http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715818 Scott Rafer Wed, 31 Oct 2007 20:39:54 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715818 Isn't Lending Club also in Crunchbase? Isn’t Lending Club also in Crunchbase?

]]> By: Ryan Merket http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715743 Ryan Merket Wed, 31 Oct 2007 20:10:49 +0000 http://www.techcrunch.com/2007/10/31/prosper-registers-with-sec-to-create-a-500-million-secondary-market-in-peer-to-peer-loans/#comment-1715743 I love proser, I took a cash loan about a year ago, paid it off recently, and about to get my car loan from there... just my 2 cents. I love proser, I took a cash loan about a year ago, paid it off recently, and about to get my car loan from there… just my 2 cents.

]]>