Prosper Releases Peer-to-Peer Lending Market Survey

Prosper.com, the world’s largest peer-to-peer lending marketplace according to Deutsche Bank, today released December 2009 statistics and second half of 2009 marketplace performance metrics. Notable in the second half of 2009 – the period following Prosper’s SEC registration quiet period – the weighted average borrower credit score was 742 and the average loan amount was $4,369. These two metrics reflect the high credit quality of borrowers on Prosper as well as more conservative loan amounts being requested and funded in the marketplace.

“Prosper has the richest, thickest set of peer-to-peer lending data available,” said Chris Larsen Chief Executive Officer and Co-founder of Prosper. “Last year’s introduction of Prosper’s proprietary peer-to-peer lending risk rating system, minimum bid floor, and 640 minimum credit score requirement has clearly made analyzing risk simpler and more robust than ever. The performance metrics we’re seeing as a result of these enhancements underscore that there’s simply never been a better time to be your own banker on Prosper.”

Prosper Statistics for the Second Half of 2009 may be viewed here:
http://www.prosper.com/welcome/marketplace.aspx

Prosper Statistics December 2009

Prosper Rating	Borrower Rate	Lender Yield	Estimated Loss Rate	Estimated Return	Average Loan Amount	Loan Volume	% of Funded Loans
AA	10.09%	9.09%	1.34%	7.74%	$7,089	$439,510	20%
A	11.09%	10.09%	2.10%	7.99%	$5,046	$590,388	27%
B	16.52%	15.52%	5.00%	10.52%	$6,706	$120,700	5%
C	22.05%	21.05%	7.22%	13.84%	$3,862	$363,026	16%
D	28.17%	27.17%	10.00%	17.17%	$3,937	$362,160	16%
E	32.98%	31.98%	14.27%	17.71%	$3,206	$160,300	7%
HR	33.71%	32.71%	22.08%	10.63%	$3,514	$189,731	9%
All Funded Loans	19.26%	18.26%	6.81%	11.45%	$4,570	$2,225,815	100%

Prosper Peer-to-Peer Borrower Loan Purpose

		Funded Loans
Debt Consolidation		53%
Business Use		12%
Home Improvement		9%
Education		4%
Auto / Vehicle		4%
Other Use		18%

Prosper Marketplace has facilitated $189 million in personal loans and has a community of over 920,000 members. To learn more about Prosper Marketplace, visit www.prosper.com.
Notes offered by Prospectus .

Definitions

Borrower Rate: The interest rate borrowers pay on their Prosper personal loan.

Lender Yield: Yield percentage is the lender's effective yield net of servicing fees, based on the borrower's interest rate. The funding forecast graph (found on every P2P loan listing) will let you know the likelihood that a loan will be fully funded.

Estimated Loss Rate: Estimated average annualized loss rate is based on the historical performance of a portfolio of similar Prosper loans.

Estimated Returns: Lender yield minus estimated loss rate. This does not factor in late fees or uncollected accrued interest on defaulted loans. Actual performance may differ from estimated performance.

Funded Loans: Borrowers who post listings in the Prosper marketplace are asked how they intend to use their peer-to-peer lending personal loan. The following reflects borrowers’ statements of intended use of loan proceeds and is the percentage of total dollars funded for the month. Prosper does not verify or confirm after funding how loan proceeds are used.