Portfolio Plans Changed Dramatically

Prosper’s Portfolio Plans changed dramatically last night.

I haven’t had the time to really get into these yet, but the minimum bid rates on some of these segments are ridiculously low.

Here is the Conservative Plan’s minimum bid rates: (criteria can be found on Prosper.com)

Slice 1:
Minimum bid rate: 5.90%
Estimated loss1: -0.22%
Adjustment2: 0.00%
Servicing fee: -1.00%
Estimated return3: 4.68%

Slice 2:
Minimum bid rate: 7.20%
Estimated loss1: -1.05%
Adjustment2: -0.05%
Servicing fee: -1.00%
Estimated return3: 5.10%

Slice 3:
Minimum bid rate: 7.70%
Estimated loss1: -1.41%
Adjustment2: -0.04%
Servicing fee: -1.00%
Estimated return3: 5.25%

Slice 4:
Minimum bid rate: 8.10%
Estimated loss1: -1.66%
Adjustment2: -0.02%
Servicing fee: -1.00%
Estimated return3: 5.42%


The estimated return for the Conservative Portfolio Plan is 5.10%. Seriously, you gotta be kidding me.

Some of the minimum bid rates in other Plans are wayyy low as well. The conservative manual bidder is going to have a rough go at finding many lending opportunities. Once I have more time to look at the new changes more closely, I’ll see if there’s even any hope left for me. My initial thought is that my Prosper lending career / hobby is over…


I wonder if all those lenders that are signed up for these plans realize that the PP criteria and interest rates have been changed so dramatically?

Imagine the poor soul signing up for the Conservative plan yesterday with an estimated return of 7.01% only to have this changed last night to an estimated return of 5.10%, and not know it.

I'd be furious...

ETA: It appears Prosper has updated the plans so changes to Portfolio Plans may be updated or ignored by the lender, as detailed here by Andrew. Smart move. ;)