Prosper also announced plans for building auto-portfolios much like the ones that are available at Lending Club. You will be able to select a portfolio based on your risk tolerance and your desired return. This is similar to the standing order options they currently have, but with the new interface Prosper will set the standing order criteria that best matches the selected portfolio.
Along with these changes Prosper has announced that they will be increasing the servicing fees for A loans to 1% and decreasing the servicing fee for AA loans to 0% (not a misprint).
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2 comments:
0% servicing? That makes no sense! Marketing? More AA (good thing!)?
Prosper Andrew did a Q&A with on the new features with me that added a few insights.
@ RateLadder:
Remeber that Prosper also makes 1% commission on loans from the buyers. 0% servicing makes sense if the late rates are so low that the buyer's commission easily covers the occasional loss mitigation effort they need to engage in.
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