Marketplace Lender Prosper Reports Relatively Stable Loan to Income Ratio for April 2021

Prosper, a peer-to-peer lending company that connects borrowers and investors with over $17B in loans issued via its platform, recently shared performance data from the Prosper Portfolio for April 2021.

Prosper Performance Update – April 2021:

Highlights from the report include:

  • In April, “approximately 78% of originations were rated AA-B, the dollar amount of C-HR rated loan originations increased by 250bps month-over-month.”
  • The average loan size “was ~$13K and average borrower income was ~$107K in April, both decreasing by 2% month-over-month due to higher mix of C-HR rated loans.”
  • The median monthly payment on Prosper loan to Income (PTI) ratio for April “remains relatively stable at 5.02%.”
  • The weighted average borrower rate for April originations “decreased by 12 bps over the prior month.”

You can access Portfolio insights and key charts here.

The Prosper team notes that their Performance Updates are meant to assist their investor community with gaining a better understanding of key performance trends. The reports also aim to offer important insights into the latest trends they are seeing and the appropriate information required to invest via the Prosper platform.

Prosper’s borrower payment dependent notes are offered “pursuant to a Prospectus” filed with the US Securities and Exchange Commission (SEC). Notes are “not guaranteed or FDIC insured, and investors may lose some or all of the principal invested.”

All personal loans are “made by WebBank, a Utah-chartered Industrial Bank, Member FDIC.” All personal loans via Prosper are “unsecured, fully amortized personal loans.”

Neither Prosper Funding LLC nor Prosper Marketplace, Inc. is registered as an investment adviser with any federal or state regulatory agency.

As reported in March 2021, Prosper had shared its Quarterly Investor Update – Q1 2021.

Ashish Gupta, the Chief Credit Officer at Prosper Marketplace, wrote in a blog post that the company has continued operations in a resilient manner and reports “strong credit performance.”

Gupta added:

“Prosper’s Q1 2021 Quarterly Update provides our investor community the latest information on the performance of loans on the Prosper platform as well as our view of the macro environment. Overall, we have continued to see improvement in credit performance on the Prosper platform driven primarily by our disciplined underwriting approach over the past several years.”

Gupta added that at Prosper, they believe this is a “testament” to the strength and resilience of their platform, which leverages more than a decade of “proprietary” data and advanced AI-powered models “using traditional and alternative data sources to evaluate credit and fraud risks.”

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