P-2-P Lending

[Moosie]

I don't wear a coat... It's summer silly

 

[Moosie]

Well, my monthly update. My oldest loan is 145 Days old. My Average Loan is about 85 days old. I have had 6 or so < 15days and one finally went into a "late" status. We'll see what happens with that one. I have one going into a BK but even after he files he's still making payments and has said he will pay it off. He's still making payments so we'll see on that one. ANYWAY, I know a few of you were following my Prosper venture so I figured I would update :

Principal loaned: $9,444.45
Payments received: $773.33
Principal received:$512.87
Interest received:$273.53
Servicing fees paid:-$13.07

Value of loans: $9,011.89
Principal outstanding:$8,931.58
Interest accrued:$80.30
Late fees accrued: $0.00

Avg. interest rate: 19.06%
Daily interest accrual: $4.66

Active Loan Summary
Active loans: 97
Payment status: 94: Current
2: Late (<15d)
1: Late

3rd party site with my Charts/stats : http://www.lendingstats.com/lenders/MoosieID

 

[brymoore]

You're up to two in late status but both are small loans.

 

[Moosie]

I actually had 4 late loans.... now I have 1 with 2 more coming online soon. my lendingstats is sometimes up to 5-7 days off.

Ones a loan were I lent $186 on... OOPS ?!?!?!!? As an AA borrower... NO lates, etc. we'll see if they catch up. I had one that I lended $360+- on that was late but caught up.... Still feeling good. I need to not bid more tehn $50 at a time. But sometimes I slip

My guy thaat filed Bankruptsy is still paying, thats wiered ?>?>??

Principal loaned: $9,444.45
Payments received: $934.73
Principal received:$609.69
Interest received:$339.81
Servicing fees paid:-$14.78

Value of loans: $8,900.00
Principal outstanding:$8,834.76
Interest accrued:$65.07
Late fees accrued:$0.17

Avg. interest rate: 19.08%
Daily interest accrual: $4.62

 

[jabber]

Any updates???? It's been awhile.

 

[Moosie]

Good Question I currently have :

96 loans.
2-2 months late
4-1 month late
2-late

That’s $467.48 worth of $’s lent out that if they don’t pay I will lose. Of that, they have paid in $44.91 so It’s actually $422.57 Loss. I’ve made in Interest/late fees NET, $517.83. So I’m $95.26 in the Positive as of today.

It’s hard to predict the ROI I’m going to make this year. Prosper doesn’t take in account the lates until the “Default” which they have after 4 months. So it shows still a 19% return when in fact I'm closer to 10% depending on how the rest of the year goes..

Lending Stats has an anticipated return of 7.99% return with the portfolio I’ve picked and in the 6.75%-14.45%.

Calculating what I have is tough because I don’t know who will come out of the lates and who will go into them. I’ve had some come out of the lates but I’m not thinking they all will. It gets to a point that with late fees it’s not worth it for the borrowers.

So good Question. With Africa I hadn’t been paying attention and I needed to transfer some Coin when I got back and I saw I had quiet a few lates…. It will be interesting as the months goes on !!!!

 

[MNHunter]

Update us Mooseman

 

[Oak]

http://www.lendingstats.com/lenders/MoosieID

 

[Moosie]

I got an Excell program that has my YTD return on it. The lending stats is extimated projected returns and is a little behind on the info. (I actually have more lates then it shows ) the excell sheet take in consideration my draws, monies added, losses, and intrest. It calculates a YTD assuming all late lons will default. it's kind of cool.

Lending stats has me around 6% estimated return. I think if I didn't need the money and RE-invested it, it would average a little better. I'm glad I did 100 loans though. IF I only did 5 or 6 and one or two defaulted I would be sitting ugly

 

[brymoore]

How are things going? Your latest lending stat looks like a rainbow.

 

[chasendeer]

how is it going?

 

[Moosie]

Well, it could be worse, but it could be a crapload better

I had several loan at the end that I was dumping several hundred $'s at a time on. Alot of them very risky and now it's showing that I'm still in the positive of making money but just barely. I'm guessing in the next 3-4 months we'll see how the Defaults run out.

Looking back at it I stated out on a good approach to it. But then I was uploading money faster then I was researching just dumping it on whoever Fottunately I have the bulk in fairly safe loans that I'm not worried about nut I have several I'm sure are going to be straight up losses.

 

[chasendeer]

You can't win them all.
Jay

 

[Delw]

Oscar do you guys do machine loans? I may be interested if you do. i go some used ones picked out from 30k-150k. I am swamped with a 2 year backlog.

and I am starting to piss people off cause stock stuff is takingabout 2 weeks. I want it to be done in 2-3 days at the most. I bet I am loosing 30-40% buy not having stuff in stock.

even with good credit the banks are tight tight and want 50% down. I won't do a loan for more than 1st and last months. other wise I will just wait and pay cash. but I need a tax write off bad this year.

 

[JoseCuervo]

Probably the worst thing about Prosper was the fact it was illegal.....

If you want to read the SEC order..... http://www.sec.gov/litigation/admin/2008/33-8984.pdf

Prosper is a company that created an online platform that connected "lenders" with "borrowers" over the Internet. Fancy language aside, it allowed regular people to become a sort of loan shark to other people anywhere in the country, where the so-called "lender" him or herself was the sole holder of the risk for any particular loan.

Interest rates collected the "lenders" on the $147 million in loans was sky high, but often fell short of that charged by credit cards ...

That is to say, the interest on those loans that were actually repaid. 18.5% of all Prosper.com loans are in some sort of delinquency. 35% of loans made since 2007 are delinquent or in default.

I guess this was a neat idea.

The problem was, it was illegal.

First of all, the "loans" made by "lenders" weren't really loans at all. The so-called lenders were purchasing securities issued by Prosper, based on the loans that it originated with the cooperation of a third (or fourth) party bank.

Sound familiar?

From the SEC filing:

Individual lenders do not actually lend money directly to the borrower; rather, the borrower receives a loan from a bank with which Prosper has contracted. The interests in that loan are then sold and assigned through Prosper to the lenders, with each lender receiving an individual non-recourse promissory note.

...

The notes offered by Prosper are investments. Lenders expect a profit on their investments in the form of interest, which is at a rate generally higher than that available from depository accounts at financial institutions. Prosper’s website has included statements that the Prosper notes provide returns superior to those offered by alternative investments such as equity stocks, CDs and money markets. The Prosper website has also stated that it offers lenders ways to "spread your risk out and ensure a more reliable return" and describes how lenders are allowed to use payments from an outstanding loan to purchase a new loan "in order to maximize returns." In addition, marketing to institutional lenders on the Prosper website characterizes the platform as an alternative to "stock or bond returns" that is "crucial for prudent portfolio management" in "turbulent markets." Testimonials published on the Prosper website show that customers have used Prosper notes as investment vehicles. Prosper also offers Portfolio Plans that allow lenders to automatically bid on loans based on estimates of risk and return characterized by Prosper.

Instead of acting like a go-between between qualified lenders and borrowers, as its "concept" suggested, Prosper.com was creating unregulated securities and selling them on the market, in violation of the law.



More from the filing:

As a result of the conduct described above, Prosper violated Section 5(a) of the Securities Act, which states that unless a registration statement is in effect as to a security, it shall be unlawful for any person, directly or indirectly, to make use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise; or to carry or cause to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale

.

 

[Oak]

Prosper Filing Registration Statement; Enters Quiet Period



Prosper has started a process to register, with the appropriate securities authorities, promissory notes that may be offered and sold to lenders through our site in the future.

Until we complete the registration process, we will not accept new lender registrations or allow new commitments from existing lenders. If you're an existing lender, your current lender agreements will be unaffected; your existing loans will continue to be serviced; you'll be able to track and monitor your loans; and you'll be able to withdraw funds from your Prosper account.

If you're a borrower with an existing loan, you will continue with your current borrower agreement and be unaffected by the registration process. 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. 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.

A successful registration can take several months, but we assure you we will do our best to move forward as quickly as possible. Until this process is complete, we're required to be in a quiet period and will be unable to respond to press, blogger or other inquiries about Prosper or the registration filing until it becomes effective.

We apologize for any inconvenience this may cause, and want to thank you in advance for your understanding and support.

http://www.prosper.com/help/topics/lender-quiet_period.aspx

 

[noharleyyet]

Enters Quiet Period

...aka: 'shell game interruptus'

 

[JoseCuervo]

...aka: 'shell game interruptus'

I think the timing was they got in trouble, then in October, filed the registration and entered the 'Quiet Period' and then got the Cease and Desist order this week.

Looks like Quiet will be permanent....

 

[Moosie]

So what happens to the Millions out in loans ? they go on like usual ? Interesting. the Idea is still good though.

 

[JoseCuervo]

So what happens to the Millions out in loans ? they go on like usual ? Interesting. the Idea is still good though.

When you say "like usual", are you referring to "18.5% of all Prosper.com loans are in some sort of delinquency. 35% of loans made since 2007 are delinquent or in default."???

I would guess that if "like usual" had more than 1/3 of the loans defaulting in the first 18 months of their life, the rate will only increase when borrowers realise that it was illegal for Prosper to sell their loan to the "lenders".

And, if Prosper were to have to buy back the illegally sold securities from the "lenders", then you can assume the probability of a bankruptcy would increase. How a bankrupt entity would continue to service the loans would be interesting to watch if you couldn't find any paint that was drying and needed watching.

If nobody is "servicing" the loans, my guess is more and more borrowers stop paying....