BBVA USA offers bank-branded version of Prosper’s digital HELOC platform

Announcement comes a year after the two first announced collaboration to build HELOC digital solution

BBVA USA first bank to power its digital HELOC application using Prosper’s technology

BBVA USA, the U.S. subsidiary of Madrid-based BBVA, today announced it is offering a digital Home Equity Line of Credit (HELOC) through its website, powered by Prosper, a leading online marketplace for consumer loans. Prosper’s digital HELOC platform, which was developed to simplify the process of applying for and obtaining a HELOC, is now available to BBVA USA customers in select states via the BBVA-branded version of the platform.

The announcement comes a year after the two collaborated on and launched a digital HELOC solution that provided customers the ability to complete an online application in minutes and receive instant pre-qualification. Early results already indicate that the digital solution is helping BBVA close HELOCs 14 days faster on average when compared to the Bank’s own turn times on applications submitted in other channels.

This announcement makes BBVA the first bank partner to use Prosper’s technology as part of its own website. Customers have been using the digital application for over a year through Prosper’s website with BBVA as its exclusive bank partner in Alabama, Texas, Florida, New Mexico, Colorado and Arizona.

“We are excited to expand our relationship with Prosper by using their digital platform to power our online HELOC application process, as we both strongly believe that digital can lend convenience, speed and efficiency to customers’ banking experiences,” said BBVA USA Head of Mortgage Banking Murat Kalkan. “Customers’ expectations are continuously being shaped by faster delivery and more convenience like they experience in other industries, so naturally they demand the same from financial services. This partnership is well aligned with the core of our strategy, which aims to meet rapidly evolving customer expectations. Now, more than ever, customers can quickly and efficiently tap into the equity they have in their homes, which can provide much needed peace-of-mind knowing they have access to the money they may need for home improvements, debt consolidation or other major financial needs.”

“Consumer spending on home improvement has risen over the past six months as people spend more time at home during the pandemic. A home equity line of credit is a great option for financing a large project as it offers flexibility and access to low rates,” said David Kimball, CEO of Prosper. “With Prosper’s digital HELOC platform, it’s easier than ever to apply online, get an immediate offer, and secure a HELOC. We’re thrilled to extend our partnership with BBVA to now have our digital experience available to BBVA customers through their website.”

“The future of home equity lending is part of the race to better customer experience, so our partnership with Prosper and aspiring to provide a seamless experience to our customers in their HELOC applications is one of the core drivers of our strong growth in Home Equity business even as we see a lower overall production in the industry.” said BBVA USA Director of Home Equity Originations David Garcia Hernandez. “We are looking forward to unlocking the true potential of Home Equity through this platform.”

Key benefits of the HELOC platform include:

  • An online application that can be completed in minutes with instant offers and information about rate and prequalification status
  • Easy access to a dedicated client services team that can help users get immediate answers to their questions and understand the benefits of getting a HELOC
  • Electronic documentation uploads and disclosure delivery
  • Ability to apply from anywhere without the need to visit a branch

BBVA and Prosper began working together in 2019, knowing that each could leverage its own strength to make the process of applying and obtaining a HELOC quicker and easier. BBVA contributed its understanding and experience in equity lending, while Prosper lent its acumen in digital consumer lending and creating great customer experiences.

“We always say that consumers are the ones who benefit when banks and tech come together, and it’s something we regularly put into practice. Since our Prosper powered HELOC application launched in early September, we’ve seen a significant improvement in the number of customers who complete the online application, underscoring the power of technology to improve the customer experience,” Kalkan said. “And in a time where banks are increasingly pulling back on their HELOC offerings, for us to come together and make it available more broadly, more conveniently and more efficiently says something about our commitment to customers and their needs.”

To learn more about the digital HELOC product available from BBVA, visit https://www.bbvausa.com/loans/home-equity-line.html.

About BBVA USA

In the U.S., BBVA is a Sunbelt-based financial institution that operates 637 branches, including 328 in Texas, 88 in Alabama, 63 in Arizona, 61 in California, 43 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 14th nationally in terms of dollar volume of SBA loans originated in fiscal year 2019.

BBVA and BBVA Compass are trade names of BBVA USA, a member of the BBVA Group. BBVA USA, Member FDIC and an Equal Housing Lender. NMLS #402936  

About Prosper Marketplace

Prosper’s mission is to advance financial well-being. The company’s online marketplace lending platform connects people who want to borrow money with individuals and institutions that want to invest in consumer credit. Through Prosper’s flagship personal loan marketplace, borrowers get access to affordable fixed-rate, fixed-term personal loans. Investors have the opportunity to earn solid returns via a data-driven underwriting model. To date, over $17 billion in personal loans have been originated through the Prosper platform for debt consolidation and large purchases such as home improvement projects, medical expenses and special occasions. Through its new digital HELOC platform, Prosper is using its expertise in consumer lending to improve the process of applying for and securing a home equity line of credit, as well as deepening its commitment to simplifying consumer finance and advancing financial well-being.

Prosper Marketplace, Inc. was founded in 2005 and is headquartered in San Francisco. The platform is owned by Prosper Funding LLC, a subsidiary of Prosper Marketplace, Inc. Personal loans originated through the Prosper marketplace are made by WebBank, member FDIC. Visit www.prosper.com and follow @Prosperloans to learn more. Prosper notes are offered by Prospectus.

Prosper Marketplace, Inc. NMLS#111473 (http://www.nmlsconsumeraccess.org)
All HELOCs are underwritten and issued by our banking partner.

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Quarterly Investor Update – Q3 2020

Continued Resilience and Stable Credit Performance

As we begin the fourth quarter of what has been an unprecedented and challenging year, we would like to provide our investor community an update on the performance of the Prosper portfolio, as well as our view of the overall macro environment. Since our last investor update in July, we continue to see gradual recovery in the macro-environment. In September, the unemployment rate was at 7.9% compared to 11.1% in June[1].  Household spending on goods and services, which accounts for more than two-thirds of GDP, rose 2.5% in August from June[2].  These improving trends, combined with our disciplined underwriting approach over the last 3 years, have led to resilient and stable credit performance on the Prosper platform.

Existing Portfolio Performance

Overall, performance of our outstanding portfolio is trending favorable relative to pre-pandemic levels.

  • 30+ Days Past Due (DPD) balances for our outstanding portfolio are trending 16% favorable to January 2020.  In addition, overall payment rates on the portfolio are trending favorable year-over-year
  • As of October 13, 3.8% of borrowers are enrolled in a COVID-19 relief plan. 95% of these borrowers are in a payment reduction program; the remaining 5% are in a payment deferral program. 
  • 98% of the loans originally enrolled in a payment deferral program have graduated. 92% of borrowers graduating from the payment deferral program have either made a payment or have enrolled in the payment reduction program by their payment due date
  • 97% of borrowers on a payment reduction program are making a payment upon their due date. 

New Originations Credit Quality and Early Performance

  • Early delinquency rate for the vintages underwritten just before the pandemic (2019Q4, 2020Q1), as well as the vintages underwritten during the pandemic (2020Q2), is trending favorable.
  • Loan weighted average FICO for Q3 2020 originations was 729, improving 10 points year-over-year and 21 points vs Q3 2017.
  • In Q3 2020, 17.4% of originations were from C-HR rated loans vs. 33.5% in Q3 2019 and 58.4% in Q3 2017.
  • Median monthly loan payment to income ratio (PTI) was 5.0% in Q3 2020 vs. 7.0% in Q3 2017.
  • In Q3 2020, the mix of repeat borrowers increased 38% year-over-year.  Historically, repeat borrowers have demonstrated significantly better credit performance than new borrowers.
  • Compared to pre-pandemic levels, borrower rates on the platform remain higher to help provide enough cushion to platform investors against volatility in the macro environment.

The performance and data shared above for the Prosper platform reflects our deliberate and focused approach to managing credit performance, as well as our focus on delivering solid-risk adjusted returns for our investors. While we are encouraged by the trends, we continue to operate in a dynamic environment due to the ongoing pandemic. As such, we remain disciplined and cautious in our approach. We are actively monitoring the evolving economic environment and taking actions as necessary.


[1] https://www.bls.gov/charts/employment-situation/civilian-unemployment-rate.htm
[2] https://fred.stlouisfed.org/series/PCE

All data on this blog post is presented for informational use only. This data is impersonal and is not directed to the specific investment objectives, financial situation or investment needs of any particular person, and should not be considered investment advice. This information is not intended to be, nor should you interpret it to be, a prediction of how any particular portfolio will actually perform. You should always carefully consider investments in any security and you should be comfortable with your understanding of the investment prior to investing. Actual results may vary.

This blog post includes forward-looking statements.  Forward-looking statements may include financial and other projections; statements about  the impact of our credit and underwriting initiatives and our ability to successfully navigate the current macro-economic environment; statements regarding investor returns, loan performance, and the impact of the current pandemic; as well as the assumptions underlying any of the foregoing.  Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations in these statements, and there can be no assurance that the expectation or plan will result or be achieved or accomplished.  All forward-looking statements speak only as of the date of this blog post and are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to update or revise forward-looking statements that may be made in this blog post to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

Prosper’s borrower payment dependent notes (“Notes”) are offered pursuant to a Prospectus filed with the SEC.  Notes are not guaranteed or FDIC insured, and investors may lose some or all of the principal invested. Investors should carefully consider the risks, uncertainties, and other information described in the Prospectus before investing.

Quarterly Investor Update – Q2 2020

Since the last investor update in April, the overall macro-economic environment has shown signs of improvement. In June, the unemployment rate was 11.1% compared to 16.9% predicted at the beginning of May[1]. Household spending on goods and services, which accounts for more than two-thirds of GDP, rose a record 8.2% in May[2] compared to April. While these were encouraging signs, at the same time, a recent resurgence in COVID-19 cases[3] and subsequent shutdowns by several states[4] along with the upcoming expiration of federal unemployment benefits under the CARES Act pose a risk to the ongoing recovery.  At Prosper, we remain disciplined and cautious with respect to the current environment and we continue to take actions on both the current servicing book as well as new originations to help actively manage investor returns.

Existing Portfolio Performance

Overall, we are encouraged by the credit performance of borrowers graduating out of our payment relief programs as well as borrowers who are not on any relief program.  We continue to focus on providing payment relief options to our borrowers as well as adding collections and customer service capacity to effectively manage portfolio performance. 

  • As of July 12, 10.6% of Prosper borrowers have enrolled in COVID-19 related payment relief programs that we first began offering in March. 
  • 87% of borrowers graduating from skip-payment programs have either made a payment or have enrolled in the Payment Reduction program by their payment due date. Prosper began the Payment Reduction program in May, which allows eligible borrowers to reduce their minimum monthly payment for up to 6 months and extend the maturity of the loan for up to 11 months. 
  • Our focus is to transition borrowers graduating from skip-payment programs to either making a full payment or making a partial payment through the Payment Reduction program.
  • As of July 12, borrowers who have not enrolled in any relief programs are performing favorably compared to historical trends.

New Originations Credit Quality

Overall, the credit quality of new originations continues to be strong. This reflects both the credit actions taken in response to COVID-19 and, more broadly, over the last three years.

  • Loan weighted average FICO for Q2 2020 originations was 730, improving 13 points year-over-year and 27 points vs Q2 2017.
  • In Q2 2020, 11% of originations were from C-HR rated loans vs. 35% in Q2 2019 and 63% in Q2 2017.
  • Median monthly loan payment to income ratio (PTI) was 5.1% in Q2 2020 vs. 7.2% in Q2 2017.
  • Over the years, we’ve seen that many borrowers return to Prosper for a second loan. Historically, these repeat borrowers have demonstrated significantly better credit performance than new borrowers. In Q2 2020, the mix of repeat borrowers increased roughly 375 basis points year-over-year.
  • Our verification strategies continue to be more stringent post COVID-19 and focused on stability and consistency of income in the current environment.
  • Compared to pre-pandemic levels, borrower rates on the platform remain higher to help provide sufficient cushion to platform investors against overall higher level of risk. 

The trends above reflect our disciplined approach to managing credit performance on the Prosper platform under the current environment and over the last three years. We remain committed to delivering solid risk-adjusted returns for our investors and also helping borrowers who are facing financial hardship as a result of COVID-19.  We will continue to actively monitor the evolving economic environment and take actions as necessary.


[1] https://www.wsj.com/graphics/econsurvey/

[2] https://www.bea.gov/news/2020/personal-income-and-outlays-may-2020

[3] https://www.nytimes.com/interactive/2020/us/coronavirus-us-cases.html

[4] https://www.nytimes.com/interactive/2020/us/states-reopen-map-coronavirus.html

An Update from Prosper on Coping with COVID-19

Over the past several weeks, the team at Prosper has been working to respond to a world that’s changed around us. With schools closed and businesses shuttered, there’s an unfamiliar rhythm to life—and with it a lot of new stresses, coping with COVID has been difficult. But the same disruptive pandemic also highlights something that hasn’t changed, and that’s our interconnectivity.

Founded in 2005 as the first peer-to-peer lender in the U.S., empowering people to help one another is part of our DNA, and it has never felt more relevant. At Prosper, we’re prepared to weather this storm together by continuing to support our borrowers and our business.

We understand that many of our customers are facing financial hardship as a result of COVID-19, and we’re making every effort to assist borrowers with relief options. You can learn more about how we may be able to help by calling us at 1-800-843-1662 or sending an email to covidhelp@prosper.com.

There are also a number of resources available online to help answer questions about benefits and services that may be available to you, including a directory of the US government responseguidance and relief information for small businesses from the Small Business Association, and an overview of government & other relief programs compiled by the New York Times.

As a business, we have been actively preparing for a potential recession over the past several years. We have connected investors to more than one million borrowers through the Prosper platform, empowering both borrowers and investors to grow stronger together. We continue to keep in close contact with our investors to address their questions on expected loan performance and returns in this volatile environment.

One of the pandemic’s most maddening features is its lack of predictability. And, while the Prosper team can’t know the future, we can promise you this: We will continue to serve our borrowers by working with them to manage the challenges they’re sure to face in the coming weeks.

Celebrating 1 Million People Empowered by Prosper

Nearly 15 years ago, Prosper launched as the first peer-to-peer lending platform in the U.S. As of today, more than 1 million people have gotten a personal loan through Prosper!  

We’ve grown in more ways than one, but our mission to promote financial well-being has always remained the same. So we’re taking this opportunity to celebrate all the borrowers and investors who’ve used our platform to help each other—whether by tackling debt, financing a major expense, or investing in consumer credit.

Over the years, we’ve heard from thousands of our borrowers about how a loan through Prosper helped them get back on track and on top of their finances. Here’s just one of their stories:

#MyProsperStory is that I had a major surgery, meaning I could not work for a number of weeks. The hospital accounts department, as well as the doctor, required me to pay a significant amount of money before the date of the surgery even though I had health insurance. Prosper helped me by processing the loan in an efficient and quick way and they did not require a long drawn out process of submitting paperwork. Ultimately, Prosper made a very difficult situation much easier to deal with as I was able to pay the hospital in a timely manner without penalty, interests, calls from collection agencies, etc. Thanks Prosper!

From everyone here at Prosper, thank you for being a part of our journey!

All personal loans made by WebBank, Member FDIC. 

Prosper and BBVA USA Team Up to Launch Innovative Digital Home Equity Line of Credit Platform

Leading Marketplace Lending Platform and Top 25 U.S. Bank Bring Together Strengths in Fintech and Digital Banking to Dramatically Improve the Home Equity Line of Credit (HELOC) Experience for Homeowners

HELOC Platform Now Available to Customers in Alabama, Arizona, Florida and Texas via Prosper’s website and available soon to a select group of BBVA USA customers via a BBVA branded version of the platform

Prosper, a leading online marketplace lending platform connecting borrowers and investors, together with the U.S. subsidiary of Madrid-based BBVA, announced their collaboration in providing a Home Equity Line of Credit (HELOC) available through Prosper’s website (www.prosper.com).

Prosper and BBVA USA have worked closely together to build an end-to-end HELOC solution that allows customers to complete an online application in minutes and receive an instant pre-qualification. The digital platform saves customers weeks compared to the traditional application process and offers HELOC consumers access to competitive rates and no origination fees.

How Our Exclusive Partnership Works

BBVA USA is Prosper’s exclusive bank partner in the bank’s main footprint states of Alabama, Texas, New Mexico, Colorado and Arizona, and also worked side-by-side with Prosper, lending equity product knowledge and expertise as the digital solution was developed. The bank will soon offer the digital HELOC to a selected group of its own customers via a BBVA branded version of the platform.

We are thrilled to have a partner like BBVA that believes, as we do, in the power of technology to improve efficiency and deliver a great customer experience,” said David Kimball, CEO, Prosper Marketplace.

“Working closely with BBVA, we’re excited to be able to offer our customers the opportunity to quickly and easily apply for a HELOC online, which can be a smart and affordable financing option for things like home improvement and debt consolidation. We look forward to expanding this product offering to more states and continuously improving the experience.”

“BBVA is the leader in digital banking globally, and as such, we’re focused on a transformation that leverages digital to help us drive growth and improve the banking experience for our customers,” said BBVA USA Head of Retail Banking Çağri Süzer. “The digital HELOC with Prosper is reflective of the type of transformation we think will carry us into the future, but more than that, we’re excited to work with a fintech stalwart like Prosper to help people quickly and easily access the equity that they have built up in their home.”

How Teaming Up Helps the HELOC Process

Available home equity reached an all-time high of $6.3 trillion in the second quarter of 2019.[1] While many homeowners have equity available, the traditional process of getting a home equity line of credit has been a confusing, lengthy and cumbersome process.

Prosper has used its expertise in technology and consumer loans to create a fast and simple process for obtaining a HELOC, while BBVA is using its extensive experience in equity lending to deliver knowledge and a great customer experience to HELOC borrowers. The partnership is a unique example of how a fintech and bank are working together to provide a long-term relationship product like HELOC to customers with ease and efficiency.

How the Digital Platform Works

The platform recently launched in a limited number of states including Alabama, Arizona, Florida and Texas, and will roll out to additional states in the coming months. Key benefits of the HELOC platform include:

  • An online application that can be completed in minutes with instant offers and information about rate and prequalification status
  • Competitive rates with bank-paid closing cost offered by BBVA
  • Flexible monthly payments and the opportunity to access to a line of credit in weeks versus the months it traditionally takes
  • Access to a dedicated client services team that can help users get immediate answers to their questions and understand the benefits of getting a HELOC
  • Confidence of having a HELOC originated and serviced by a reputable lender like BBVA

To learn more about the digital HELOC product available today on Prosper’s website, visit: https://www.prosper.com/heloc.

About Prosper Marketplace

Prosper’s mission is to advance financial well-being. The company’s online marketplace lending platform connects people who want to borrow money with individuals and institutions that want to invest in consumer credit. Through Prosper’s flagship personal loan marketplace, borrowers get access to affordable fixed-rate, fixed-term personal loans. Investors have the opportunity to earn solid returns via a data-driven underwriting model. To date, over $16 billion in personal loans have been originated through the Prosper platform for debt consolidation and large purchases such as home improvement projects, medical expenses and special occasions. Through its new digital HELOC platform, Prosper is using its expertise in consumer loans to improve the process of applying for and securing a home equity line of credit, as well as deepening its commitment to simplifying consumer finance and advancing financial well-being.

Prosper Marketplace, Inc. was founded in 2005 and is headquartered in San Francisco. The platform is owned by Prosper Funding LLC, a subsidiary of Prosper Marketplace, Inc. Personal loans originated through the Prosper marketplace are made by WebBank, member FDIC. Visit www.prosper.com and follow @Prosperloans to learn more. Prosper notes are offered by Prospectus.

About BBVA USA

In the U.S., BBVA is a Sunbelt-based financial institution that operates 642 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 45 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.

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[1] BlackKnight July 2019 Mortgage Monitor