Marketplace Lender Prosper implements new credit risk rating model, CH-R rating mix increases by 26%

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Prosper, a peer-to-peer lending company that connects borrowers and investors with more than $ 17 billion in loans issued through its platform, shared its Performance update report for the month of June 2021.

As stated in Prosper’s report, dated July 15, 2021:

“In June, we implemented the brand new credit risk rating model, the PMIX. Following the implementation of PMIX, the C-HR rating mix increased to 26%. Prosper’s rating-adjusted average loan size and median monthly payment to loan-to-income ratio (PTI) remained relatively stable month over month.

Prosper’s median monthly payment to loan-to-income (PTI) ratio for the past month has remained “relatively stable” at 5.09%, the company reports. He also mentioned that the weighted average borrower rate for the June 2021 start-ups was up 24 basis points from the previous month, mainly due to the “growing C-HR mix.”

Additional portfolio information and key charts can be viewed here.

As the company noted, the Prosper Performance Updates were designed to help their investment community better understand key performance trends. The updates also aim to offer important information on the main trends observed by the Prosper team and the information needed to invest through their platform.

If you would like to add your name to the monthly performance update list, please contact [email protected]

As covered last month, Prosper revealed that in May 2021, “around 78% of mounts were rated AA-B.” The average loan amount on the Prosper lending platform was around $ 13,000 and the average borrower income was around $ 107,000 for May 2021, with both figures remaining “relatively stable month to month. ‘other”.

The company further revealed that the median monthly PTI payout ratio for May “remained relatively stable at 4.95%.” Prosper’s team also noted that the weighted average borrower rate for the May fixtures “declined 10 basis points from the previous month.”

Ashish Gupta, the chief credit officer at Prosper Marketplace, revealed earlier this year that the company has continued to operate in a resilient manner and reports “excellent credit performance”.

Gupta added:

“[For] Prosper Quarterly Update for Q1 2021… Overall, we have continued to see an improvement in credit performance on the Prosper platform, primarily due to our disciplined underwriting approach over the past few years.

Gupta added that at Prosper, they believe this is a “testament” to the strength and resilience of their platform, which leverages over a decade of “proprietary” data and advanced models. powered by AI “using traditional and alternative data sources to assess credit and fraud risks.

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