February 15, 2017

Prosper Performance Update: January 2017

By Brad Pennington

Today we are sharing performance data for the Prosper portfolio for January 2017.

January was an exciting month for Prosper because it was the first month where the majority of originated assets were underwritten using our new PMI7 custom score.  As anticipated, PMI7 increased the loss and return expectations for the entire Prosper portfolio.  Interestingly, we actually see a decrease in the portfolio’s DTI and only a modest decrease in FICO scores.  Within the highest rating grades (AA-B), average FICO scores are 6 to 20 points higher.  We expect that these rates will decrease over the course of 2017.

Additional highlights from the January update include:

  • Estimated return on January 2017 production is 7.86%.
  • Post-charge off recovery experience for the last year has ranged between 9.07% and 10.43% for investors participating in Prosper’s debt sale programs. This experience compares favorably to the 7% assumption currently used for generating IRR estimates for the portfolio.  I expect Prosper to increase recovery assumptions in Q1 if we see continued success on the post-chargeoff collections front.
  • Early delinquency indicators from our H2 2016 vintages continue to show positive early signs and material improvements relative to their H1 2016 counterparts. Pre-payment for 2016 continues to remain at elevated levels relative to the experience of 2013-2015; the performance is comparable to that observed in 2009-2012.

Portfolio insights and key charts can be found here.

The Prosper Performance Updates are designed to help our investor community better understand performance trends and to provide them important insights into the trends we are seeing and the information needed to invest through the Prosper platform.

If you wish to add your name to the monthly performance update list please email [email protected].

The data, statements and figures in this post are based on Prosper’s analysis and calculations which, in turn, are based on various data sources compiled and analyzed by Prosper with all reasonable care to ensure they contain no omission likely to affect their import. Neither the analysis nor the underlying data sources have been verified by an independent third party.

This post includes forward-looking statements. Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management and is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. All forward-looking statements speak only as of the date of this post and are expressly qualified in their entirety by the cautionary statements above. We undertake no obligation to update or revise forward-looking statements that may be made in this post to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

All personal loans are made by WebBank, a Utah-chartered Industrial Bank, Member FDIC. All personal loans through Prosper are unsecured, fully amortized personal loans. Neither Prosper Funding LLC nor Prosper Marketplace, Inc. are registered as an investment adviser with any federal or state regulatory agency. The information contained in this presentation is for informational purposes, and should not be construed as individually tailored investment advice or as a recommendation with respect to any security or investment approach. This presentation has been prepared without regard to the circumstances and objectives of its participants and should not be relied upon as authoritative or taken in substitution for the exercise of judgment by any individual.  Each individual should consider the appropriateness of any investment decision having regard to his or her own circumstances, the full range of information available and appropriate professional advice. Prosper Funding LLC and Prosper Marketplace, Inc. recommend that each individual seek independent investment and financial advice concerning any services or investments discussed in this presentation.