Marketplace Lender Prosper Implements New Credit Risk Scoring Model, CH-R Rating Mix Increases 26%

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 June 2021.

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

“In June, we implemented the newest credit risk scoring model, PMIX. As a result of PMIX’s implementation, the C-HR rating mix increased to 26%. Rating-mix adjusted average loan size and the median monthly payment on Prosper loan to Income (PTI) ratio remained relatively stable month over month.”

The median monthly payment on Prosper loan to Income (PTI) ratio for last month remained “relatively stable” at 5.09%, the company reports. It also mentioned that the weighted average borrower rate for June 2021 originations grew by 24 bps over the previous month, driven mainly by the “increasing mix of C-HR.”

Additional portfolio insights and key charts may be accessed here.

As noted by the company, the Prosper Performance Updates have been designed to assist their investor community with better understanding key performance trends. The updates are also meant to offer important insights into the major trends that the Prosper team is seeing and the information required to invest via their platform.

If you’re interested in adding your name to the monthly performance update list, please contact

As covered last month, Prosper revealed that 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 for May 2021, both figures remaining “relatively stable month-over-month.”

The company further revealed that the median monthly payment on PTI ratio for May “remained 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.”

Ashish Gupta, the Chief Credit Officer at Prosper Marketplace, revealed earlier this year that the company has continued operations in a resilient manner and reports “strong credit performance.”

Gupta added:

“[For] Prosper’s Q1 2021 Quarterly Update … 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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