Marketplace Lender Prosper Reports that 78% of Originations Rated AA-B in May 2021, with $13K Avg Loan Size

Prosper, a peer-to-peer lending company that connects borrowers and investors with over $17B in loans issued via its platform, has shared its Performance Update Report for the month of May 2021.

As noted in the report from Prosper, dated June 15, 2021:

In May 2021, “approximately 78% of originations were rated AA-B.” The average loan size on the Prosper lending platform was about $13,000 and the average borrower income was about $107,000 last month, both figures remaining “relatively stable month-over-month.”

The company further revealed that the median monthly payment on Prosper loan to Income (PTI) ratio for May “remains relatively stable at 4.95%.” The Prosper team also noted that the weighted average borrower rate for May originations “decreased by 10 bps over the prior month.”

You may access more portfolio insights from Prosper and key charts here.

As mentioned in the announcement, the Prosper Performance Updates are “designed to help [the company’s] investor community better understand performance trends and to provide important insights into the trends [they] are seeing and the information needed to invest through the Prosper platform.”

As covered last month, Prosper had reported that 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 in April “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.”

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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