Online Marketplace Lender Prosper Reports that Around 67% of Loan Originations Rated AA-B in July 2021

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 July 2021.

As noted in the report prepared by Haiyan Huang from Prosper, dated August 13, 2021:

“In July, approximately 67% of loan originations were rated AA-B. Average loan size remains relatively stable month over month. The median monthly payment on Prosper loan to Income (PTI) ratio for July increased by 12 bps month over month to 5.21%.”

The team at Prosper added:

“The weighted average borrower rate for July originations increased by 25 bps over the prior month, driven primarily by the increasing mix of C-HR loan originations.”

Other portfolio insights and key charts may be accessed here.

As noted by the firm, the Prosper Performance Updates are designed and meant to assist their investor community with gaining a better understanding of key performance trends. The updates are also supposed to offer important insights into the trends Prosper’s team is seeing and the information required to strategically invest via the platform.

As covered in July 2021, Prosper had revealed:

“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 June 2021 had remained “relatively stable” at 5.09%, the company reported last month. 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.”

Prosper reported that 78% of originations were rated AA-B in May 2021, with $13,000 average loan size. Prosper also confirmed a relatively stable loan to income ratio for April 2021.

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