Today we are sharing performance data for the Prosper portfolio for October 2016. These updates are intended to give our investors important insights into the trends we are seeing, including as it relates to overall performance and estimated returns.
As you will see, estimated return on October 2016 production is just under estimated return for Q3 2016. Also shown in the update, FICO remains approximately 10 points higher than FICO from than its lowest point in 2015 and early 2016.
Additional highlights from the October update include:
- Vintage prepayment rates continue to track higher for Q2 2016 and Q3 2016 which we believe is tied to the higher pricing and increased underwriting conservatism that was introduced during the first half of 2016.
- Delinquency for Q1 2015 and Q2 2015 vintages demonstrated improvement vs. prior months (see % Delinquency Per Origination Trend chart). Site changes introduced in October decreased manual pay selection. We will continue to monitor these vintages closely to see if this change has a positive impact on early delinquency patterns.
- All delinquency and loss patterns since 2013 remain below the loss and delinquency levels experienced in 2012. We believe the lower level of risk is attributable to changes made to the credit risk program at the end of 2012.
- Cumulative gross charge-offs continue to be above the 2013 trend as a result of a consumer credit environment that is no longer improving as quickly as it had throughout 2013-2014.
More portfolio insights and key charts can be found in the full report.
The Prosper Performance Updates are designed to help our investor community better understand performance trends and to provide them with the information and tools 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.