Comments on: My Very First Guest Blogger – James from Dual Income No Kids Discusses Lending on Prosper

By: Angie

Angie — Wed, 26 Mar 2008 18:04:56 +0000

Do your homework done first if you are thinking about taking out a loan or mortgage. The time spent looking into your options can save you a good deal of money later on.

By: makingourway

makingourway — Fri, 28 Jul 2006 06:30:56 +0000

Through a Glass Darkly,

BTW, I liked the book.
Of course Prosper members are allowed to discriminate, they are making investments
on a personal basis, they are not licensed professionals.
They should have nothing to fear — then again — some prejudices might lead to social ostracism.

I do agree with James H on a few points:
1. older people are usually more responsible and have more to lose from poor credit practices.
2. credit is important – i actually try to stick with B or better.

I also disagree on certain spots:
1. home remodelling can add value to a home and facilitate resale or re-appraisal for home
refinancing.
2. people do have reasons to borrow out of their control (sickness of a family member), however, I also agree that they should demonstrate that they are responsible and will repay the loan.

There is also the opposite view – details do not matter – distribute your loans broadly and
in small amounts. The law of large numbers will pull your default rates closer and closer
to the statistical averages. It is incumbent upon you to ensure the interest rate
you lend out at incorporates and satisfies the statistal default rate.

Have a great weekend,
makingourway

By: Tricia

Tricia — Tue, 25 Jul 2006 21:36:23 +0000

I’m not sure about being a Lender on Prosper, but as a borrower I only needed to disclose what I wanted to disclose. Since I had my blog – Lenders had the ability to look at everything with me (such as age and marital status).

If Borrowers are not comfortable with disclosing their age or marital status they do not have to, unlike when they walk into a mortgage office.

Any lenders wish to comment?

By: Through a Glass Darkly

Through a Glass Darkly — Mon, 24 Jul 2006 20:03:51 +0000

Are lenders on Prosper allowed to discriminate in ways that banks and other lenders cannot? I am not trying to make a point; I’m curious. In my profession, with my organization being a mortgage lender, we cannot discriminate based on age (though we can on length of credit history) or marital status.