Adam Loving’s BlogSeattle Facebook, OpenSocial, and Web Development

I wrote previously about prosper.com defaults causing me to stop loaning money. Also, it looks like earnings have decreased for lenders by around 3-4% on Prosper’s built in portfolios. This is likely due to the federal reserve lowering rates on loans around the country, but could also be due to the high number of defaults on Prosper loans.

I think Prosper is a fantastic concept, I hope they weather the current economic climate, find away to improve borrower screening, and get even tougher on debt collection!

I wrote a year and a half ago about my experiences loaning money on prosper.com. That write-up continues to be one of my most popular posts. I would like to follow up and officially downgrade prosper to “disappointing”. My investments have only made about 10% (total) over the past 2.5 years, and loans continue to default at a huge rate regardless of credit rating. My advice: invest somewhere else.