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

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


Introducing the Prosper Invest Mobile App

With the new Prosper Invest Mobile app, investors can adjust their investment portfolio, transfer funds and check returns.

Prosper is excited to announce the launch of the Prosper Invest mobile app. Available on both iOS and Android, the app lets Prosper’s individual investors now manage their account from their mobile device – from adjusting their investment portfolio, to transferring and allocating funds, to checking their returns.

The Prosper Invest mobile app can be downloaded from the Apple App Store or the Google Play Store. You can also download by visiting https://www.prosper.com/invest.

Using Prosper Invest, investors can now easily manage their investment accounts on-the-go:

  • Set up, review, and adjust target portfolio allocations using the Prosper Auto Invest tool
  • Add cash to a Prosper investment account in one-time, weekly or monthly increments
  • Monitor and manage portfolio performance, as well as see historical return information for the Prosper portfolio

Prosper was founded with the idea that investing in people could be financially and socially rewarding. In addition to key account management features, one of the unique features of the Prosper Invest app is the opportunity to see how each investment impacts someone’s life. With the “My Impact” feature, investors get a closer look at how their investments in Prosper loans have helped people across the country do things like consolidate debt or make home improvements. The app also features stories from Prosper customers who share how a loan through Prosper has helped them get control of their finances.

With the “My Impact” feature, investors can see how their investments in Prosper loans have helped people

We hope that investors love our new app. We’re committed to creating a safe and secure app for our investors, which includes using the latest security features. We’ll continue to make updates to the app based on feedback we receive from our investor community. As always, we appreciate hearing from you! Please send us your thoughts at feedback@prosper.com. 

2018 Tax Guide for Prosper Investors

It’s tax season, and to help Prosper retail investors navigate the process, we’ve created the 2018 Prosper Tax Guide. This guide has general information about the 1099 tax form(s) you may receive from Prosper.

To access the Prosper Investor Guide for 2018, click here.

If you’re a retail investor who holds Notes from Prosper, here’s what you need to know:

  • In connection with your investment through Prosper, you may receive the following forms for the 2018 calendar year:
    • 1099-OID: Net interest received in 2018
    • 1099-MISC: Other income (such as late fees) received in 2018
    • 1099-B: Recoveries, proceeds and cost basis on Notes corresponding to charged-off loans in 2018

These 1099 tax statement(s) are now available in your Prosper account. Please note, it is your responsibility to check your account and review all information provided before filing your tax return. Click here to access your tax statement(s).

Prosper does not provide tax, financial or legal advice and neither this post nor Prosper’s tax guide is intended to be tax, financial or legal advice. We recommend that you consult with your financial or tax advisor if you have any questions.

Prosper Performance Update: November 2018

Today we are sharing performance data from the Prosper Portfolio for November 2018.

Highlights from the November report include:

  • In November, 62% of originations were rated AA-B and WA FICO was 716, an increase of 10 points since Q3 2017.
  • Average loan size on the platform is $13,455, approximately $150 lower since 2018H1. This decrease is driven by our continued focus on limiting loan amounts based on a borrower’s income and ability to pay.
  • WA Borrower Rate for November originations on the platform increased by 38 bps compared to October 2018. This increase was largely mix driven; the weighted average borrower rate would have increased month-over-month by 8 bps without the shift in rating mix.
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 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 institutions@prosper.com.

Prosper Performance Update: October 2018

Today we are sharing performance data from the Prosper Portfolio for October 2018.

Highlights from the October report include:

  • In October, 63% of originations were rated AA-B as Prosper continues to reduce the risk profile of originations on the platform.
  • Dollar WA FICO for the month of October was 716, relatively flat month-over-month and an increase of 10 points since Q3 2017.
  • Average loan size on the platform is $13,089, approximately $500 lower since the first half of 2018. This decrease is driven by our continued focus on limiting loan amounts based on a borrower’s income and ability to pay.
  • WA Borrower Rate for October originations on the platform decreased by 16 basis points (bps) compared to September as the portion of originations rated AA-B increased. The weighted average borrower rate would have increased month-over-month by 7 bps without the shift in rating mix.
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 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 institutions@prosper.com.

Prosper to Launch New Digital HELOC Product

Prosper recently announced  it will launch a new digital Home Equity Line of Credit (HELOC) product in 2019. The introduction of Prosper’s new HELOC offering marks another milestone for the company, which launched in 2005 at the first peer-to-peer lending company, with more than $13 billion in personal loans originated through its platform to date.

Applying for and obtaining a HELOC has historically been a difficult and lengthy process, leaving many consumers frustrated. According to a TransUnion study*, as home values rise, more and more people will be looking at a HELOC as a potential option for accessing credit. The study reported that an estimated 10 million consumers will take out HELOCs between 2018 and 2022, which would be more than double the number originated from 2012-2016.

Beginning in early 2019, Prosper will be partnering with banks to dramatically improve the HELOC application process and reduce the time from application to closing.  Banks will also have the opportunity to significantly grow their HELOC footprint by gaining access to Prosper’s national customer base, proprietary technology and marketing expertise.

Using Prosper’s simple, easy-to-use process, customers will be able to complete an online application within minutes, receive an instant HELOC prequalification offer, and save weeks versus the traditional process. HELOCs originated through Prosper will have no origination fee and offer the same competitive rates as banks.

“We are taking advantage of our expertise in consumer credit and personal loans to build a product that removes the complexity and time-consuming barriers in applying for a HELOC,” said David Kimball, CEO, Prosper Marketplace.  “For many of our customers, a HELOC could be a better choice for their financial needs and we’re thrilled to be working with our bank partners to render the traditional process obsolete with a new digital HELOC process that is simple, fast and painless.”

To sign up to learn more about Prosper’s HELOC product, visit:  www.prosper.com/HELOC.

TransUnion HELOC Study, October 24, 2017