I have $570.09 in my lending account at the moment and will bid the whole amount at 1% interest on the first Prosper listing that meets my criteria.

If your listing "wins" I will do what I can to promote it to other lenders, since I believe it will be a unique listing in the history of Prosper.

I am not a Group Leader. You can prepare your listing through any Group Leader (GL) who is willing to do the verification and who is unrelated to you.

REQUIRED LISTING CRITERIA:

(1) Borrower's Listing must have:

- Credit Grade AA-D
- No Current DQ's
- City Set Visible
- Any and all previous Prosper loans paid off
- Interest Rate 10% or higher

(2) Listing must have at least 5 Verified Endorsers (no two from the same category) who bid personally and are from these categories:

- a next-door neighbor
- a co-worker
- your boss
- your priest/rabbi/minister
- your landlord
- a parent or grandparent
- an in-law (if married)
- a longtime friend
- a job reference/business associate
- a Leader/Officer of local organization/association/club you've been involved with for 2+ years (up to 3, each from different ones)

(3) Each Verified Endorser is required to:

- declare their relationship to the borrower
- declare at what interest rate/amount all bidding is made at
- be willing to be contacted by the GL for verification

(3) The borrower will supply the GL with contact information for the Verified Endorsers, and the GL will contact them to confirm the relationship and will post the confirmation on the listing.

Good luck! I don't care about pictures, budget, why you want the loan, etc. but other lenders might want that information.

As I receive payments from my other Prosper loans I will let it accumulate in my lending account so I can increase the amount of my bid on the "winning" listing....I'm Saving All My Lending Cash for you!

Edits made 9/13/07:

Removed references to GL fees since these fees were eliminated by Prosper.
Added requirement that GL be unrelated to the borrower.
Added as potential endorsers: Leader/Officer of local organization/association/club

Edit made 11/3/07:

Any and all previous Prosper loans paid off

I'll add $50.00 to that.

Why don't you start a group with those requirements being the entrance requirements ?

Have you seen this one?

https://www.prosper.com/lend/listing.aspx?listingID=171459

This listing has 9 endorsements, all of them bidding, but only 1 (Islandmele's) would qualify under the criteria I listed.

2 of them show the interest rate (5%) the bid is placed at, but there is no stated real-world relationship to the borrower.

4 of them indicate that they are business associates (local eBay club/former teacher) but do not specify the interest rate that they are bidding at.

My requirement is that there are 5 verified endorsements from different social connections. Endorsements from 5 co-workers or from 5 family members would not qualify.

Aren't there enough Groups on Prosper? Yet borrowers are posting on a daily basis "How do I get bids" and "What can I do to get funded".

I'm not there yet, but I will be... By then, I won't need a loan. I am lending to quite a few people and so far they are all current. I think it is important to pay attention to DTI and to home ownership, but, I don't see much discussion of those items. I hope the borrowers stay current.

There are a lot of groups on Prosper and I think it is hard to find one that fits. Then, too, I see there are criteria among lenders for the quality of groups. I think it is tricky for new borrowers to follow the forum and it can be harsh at first till you see why.

It is hard to keep my lender thoughts in one place and my borrower thoughts in another, to say nothing of my chat thoughts or RML thoughts. These ideas do not stay separate in my brain.

J

For that high a bar, the borrower deserve tha you fully fund the loan. There are literally 1,000s of lenders here who'll bid on a loan of that caliber.

I have no business associates who aren't co-workers or bosses, so that's one out. I am not married, there's two gone. Lacking a landlord and a religious leader I'm out four categories, and if we toss in the fact that my grandparents are dead and parents are in no position to lend me money, technically, I don't know enough people to cover the categories.


Good thing I'm not seeking a loan from you, I guess.

:rolleyes: Prosper"s Games! Prosper's Gain! It's one thing to set the bar and it's
completely another to establish separate lending criteria, apart from that, which has been established by Prosper. G-L

I'm sorry if my categories are too narrow; I am open to expanding them to include more potential borrowers.

Say you've been volunteering your time at the Kiwanis Club for the last 5 years or some other charity, club, or social organization. If you got the President or Treasurer of the local chapter to bid as a Verified Endorser I'd accept that as one of the 5.

Or if you are a longtime member of a choir, sewing circle, bowling league, etc. Get the conductor or director to endorse and bid and that's another one of the 5.

Maybe you could help me with the wording? I would want the Verified Endorser to be in a position of authority in an organization where the borrower has been a regular and active local member for at least 5 years.

Your social capital wherever it happens to be--is valuable to you. Think of the people you know who you would not want to ever let down. I want my money riding along side of theirs.

Ah, but by your own admission (several times) there is no group like this. There would be plenty of people willing to bid on loans with those criteria. It's your idea, so you should get some rewards for it.

And as GL, you could personally make sure everything is kosher. You would contact the endorsers yourself. You would have the inside track and could sniff out any funny business.

I will bid $1000 if borrowers meet this criteria as well.

Those who could most likely don't need your bid.
So much for less than even 1 grand.

I love the fact that you have very specific criteria and they make perfect sense to me as far as helping to ensure payoff. Embarrassment is a huge factor to many. Having read your posts with this desire previously- I think you really should start a group like this- you feel it so strongly!

Unfortunately for me I have a co-worker and a friend endorsing me but would never ask my in-laws or my family to get involved in my life this way as things are strange enough with them (or is it that they are strange enough? hmm). Nor could I ask any of my bosses to get involved. It would neither be professional nor comfortable, despite having very good relationships with all of them.

Regardless I do think you have a great idea, as stringent as it is, that would help to reduce the risk for lenders! Bets of luck in your portfolio building!

I'm hoping that's the case--that other lenders will see this as a quality listing (or at least an interesting curiousity) and the rate will get bid down well below market for the lucky borrower who puts in the work of getting the endorsements.

My lending account is small so $570 is proportionally a lot for me to bid on a single loan.

Other lenders have so far pledged an additional $1050, so this loan is well on its way to getting funded even before we have a borrower or a listing! :) Thanks for your support DrKarnes and maceguy!

I think the listing would be stronger if it were in an established group run by a GL that is well respected on the forums, rather than someone who has only been here a few months and doesn't know beans about running a group. I leave it to the "winning" borrower to choose what GL to list with, since there are enough restrictions on the listing as it is.

If there are GL's reading this that would be willing to host this kind of listing (as a one-time event) for no fee and would be willing to bid personally, then that might save the "winning" borrower some time in finding a good GL.

I am not planning to start a group --and if someone wants to use or modify my ideas in their group--please do!--I wish them all the best in offering listings that I as a lender find attractive.

If your parents can't OR WON'T lend you money then I wont either! ha ha!

I'd list but I'd have to bring too many newbie lenders here. I wouldn't want them to suffer any other borrowers.

That and I don't have a need for a loan right now...

Considering that I've lent them money, I hardly think "or won't" enters into it.

From reading your listing I see that you donate to various charities--one of the local directors could be an endorser. If you're involved with the PTA with your kids, get one of the committee chairpersons to be an endorser. You own your home free and clear so you probably know the next door neighbors. If it's two houses down I won't quibble.

Just some ideas...I understand that getting 5 endorsements will take a great effort from most borrowers, but what with the rate caps in some states like Connecticut, trying to get a D listing through at 10.30% is next to impossible here without doing something extraordinary.

You have fantastic points and great ideas! I am not trying to be a tough case, LOL. My situation is a bit awkward.

Personally I guess I feel it more difficult because of my sense of privacy with the people I must encounter every day. My charity work at this time (due to the frantic pace of my current schedule with 2 active kids, FT job and business) is restricted to financial contributions however small and food collecting. I do not work directly with people I have come to know enough.

The PTA is very clique-y and I have fallen away from it the past year due to being part of a new school and having the schedule conflict.

My neighbors...LOL...on one side we have no one since the owner passed, on the other we have two slightly mentally disabled though very nice people who cannot even get their tv to work, much less a computer. Behind me is a woman on the verge of insanity who I suspect is a recreational drug user, is borderline abusive to her children and starts rumors and fights with many of the neighborhood women. Can you believe it when I say this is still a much better living situation than the one we moved out of 2 years ago?! I am one of the most "put together" people in the community- better not to invite them!

I guess I don't know enough people that I am close enough to to ask this (from different categories) and the ones I know well enough are too close for me to feel comfortable involving them in my personal life. Sort of a catch 22 for keeping my privacy private.

As I said- I think your requirements are truly good ones...I'm just sad that I cannot seem to apply them to my own situation. Less for the money and more because it seems to say something unfortunate about my social life! :unsure:

I think this is a great idea. More Lenders that have $500+ cash and looking for a loan should do this more often.

Good luck with that...those requirements are worse than the bank. No thanks.

Curious though...

I currently have a friend as one endorsement and a counterpart with AtHome America as another. Would a counterpart from my FT job and my "boss"/ team leader from AtHome America qualify as two more under your guidelines?

A co-worker at one job would be one and your team leader from a secondary business would be second one (business associate). They are from two completely different social circles.

Thank you mothandrust. I am trying to get them added on. That would give me:

1) longtime friend
2) fellow Homestyle Specialist with AtHome America- we're independent reps but communicate for training and learning purposes.
3) a coworker from my FT job
4) my "boss" from AtHome America

So what else could I get... hmm... would you take a customer of mine? Someone that I supervise in AtHome America? I'm running out of ideas, LOL.

Regardless of what happens here, I really appreciate the time you have spent discussing with me! So thank you!


New detail: My endorsements for the abovementioned 4 are in, though they didn't enter in excatly what I asked them to in regards to specific $, rate and exact relationship. I hope you will understand as I'd hate to nitpick at people who are being helpful to me. :)

I'd be more than happy to tell you which one is which along with full names, but for their privacy's sake, don't want to do this on the public forums.

Please let me know if you would accept a customer or someone I supervise as my 5th. Thanks again!

This post has been edited by rowangray on Aug-1-2007 07:29 AM

Whoever you select as your Group Leader will need to know the names, and it is important that the endorsements list the amount they are bidding at and the interest rate.

This is important because on Prosper some GL's and other bidders have done a "pump and dump"--bidding at the initial rate only, and then when other lenders bid they don't competitively bid.

Your loan is for 10.3%--let's say it gets bid down to 9.5%. An endorser that bids at 10.3% will likely be outbid and not have any personal money riding on the loan.

An endorser that bids at 8% will have personal money riding on the loan at the 9.5% rate.

By having the endorsers declare what rate they are bidding at, it provides transparency for the lenders. Most lenders would see a 10.3% endorser as someone who is hoping the listing funds--but that they personally are not on the hook for any personal money.

My bid on a listing that conforms to the posted criteria will be at 1%.

Your 5th endorsement will need to be someone outside AHA. Could be someone at your kids school, soccer coach, etc.

Even if you can't get 5 for your listing to qualify, if you can get the 4 that you have to get verified and to bid, it will strengthen your listing a lot.

Hopefully this posting helps you and other borrowers who might be considering the challenge. I know it is a lot of work and involves putting personal relationships "on the line"--but that's the point! :)

I really like the idea here. I don't meet your initial qualifications, but if I don't get funded this time, I'm going to get more people I know involved. Even though I wouldn't qualify for your deal, I can see where it would be attractive to lenders to know that everyone I know is very interested in me paying back the loan.

rowangray. This is a how-to.

1. Get six people. One of them is your husband. All you need is five.

2. Give each $50 and ask them to bid at 5%, 6%, 7%, 8% and 9% respectively. That's a gift by the way. You did not get them anything last Christmas. It's never too late. They don't have to bid on your listing. They want to give you Christmas gifts early. They bid personally.

3. Asked them to put the amount and percentage as a part of endorsement.

4. Your husband set up a group and become a Group Leader.

5. Your husband do the vetting and post them on the listing. No GL fee.

6. Don't forget to take all of five out to a nice lunch for their hard work for you. Your husband join and do the vetting on the spot. Or invite them over to your place on weekend. No need to spend money eating out.


All the requirements are satisfied.


Wait until mothandrust has at least $1,000 and put a listing for matching amount. Make it Auto Fund. maceguy promised $1,000 and biblio1 $50.

If you can't wait then put a listing $1,000 + $50 + $582 = $1,632.

As I mentioned earlier in another thread here, it is even better than that:

Man, this sounds serious. Sounds like a sure way to get funded very quickly.

I should think about getting a loan here, just to take them up on the offer.

Maybe, I'll wait until mothandrust makes it that 1000. ;)

Hmmm, I suppose the other way of looking at my advice is that if many borrowers take it, the predictive quality of having endorsers who know you bid on your loan will be lost. If all your family and friends can bid $50 on your loan with zero risk, then why wouldn't they? Free money. Whoooheee! :D

Jclending's "how-to" points out a very real weakness in this experiment--that it could be defeated by a borrower who can find 5 Verified Endorsers to cooperate in an organized conspiracy to commit fraud.

Nothing has been stopping borrowers from running this kind of scam since day 1 on Prosper--the only thing different on this thread are the extra hoops to jump through and the pledged bids.

I think there are easier ways for 6 conspirators to get "free money" from Prosper lenders that take much less effort and will be more lucrative than $1632 on one loan. We've all heard of A's and AA's "cashing in" their FICO score for $25K for example. 6 people working in concert could do some serious damage at Prosper.

If those sound like lame answers--they are. The Endorsements could all be fakes, it's possible. They should not be overvalued.

As for me, I'm hoping that the first borrower to try it will turn out to be an honest person.

Faith in my fellow man? Maybe, but I think crooks will take the path of least resistance, and this ain't it.

Has anyone ever successfully pumped-and-dumped a D-rated borrower at 10.3%?

If you're concerned about pumping-and-dumping, why do your criteria only stipulate that the interest rate be disclosed, not that it be below the maximum? As it is, you're committed even if all the endorsers come right out and say they are pumping-and-dumping.

Wow! I think I'm out! :)

I missed something and have been thinking endorsements not bids. My endorsers have nothing to lend otherwise they would have already, nor could I just give $50 to 5 different people despite even a strong possibility of getting it back. If I had a budget loose enough to just pull out $250 and get all of this organized, I probably wouldn't be here looking to consolidate my debts.

Would I ask people I know to bid on me? Of course I would. I have no qualms about them getting their money back because I am using this loan to improve my credit and make some real changes, not to grab the money and run. But the saying "like attracts like" applies- just as I work off a very tight budget, so too it seems does everyone I know!

Well, I'll keep rolling this about in my mind and I thank you for your time!


Added later after some coffee, for a bit of levity: Would you trade the loan for my first born? :lol: She's a very talented, smart and beautiful 9 year old who seems to think she's 13 as evidenced by the recent eye rolling tic she has developed. Actually, let me be fair. She gets her attitude from her parents, LOL and she is really a very good kid. I am extremely lucky with both of my kids. I guess I'll keep them!

This post has been edited by rowangray on Aug-2-2007 06:21 AM

Ira, I was thinking it. jclending's plan really laid it out.. I really can come up with 5 endorsements from different categories and they are real people. If I do give them the other half, they better give me the money back with my interest.

My problem with endorsements in general is that they are overrated, specially when there is no bid. It's a violation of TOS if the endorser contact the person. So what's the point? I know if a friend skips out on a payment, I will definitely say something. unless my money's not on it. Then I'll just blame TOS

This is a lot of work for anybody who wants to scam. It is easier to be AA and ask for 25k instead of doing this.

Thanks but we've already got a 9-year-old running around the house at the moment and he wants a brother his age, not a sister. :) Best of luck with your listing and your family, and thanks for your interest in this silly idea of mine.

Not a silly idea at all and I sorely wish I could wrap myself around it. As I said in a much earlier post, I believe this is reflecting very badly on my social life. ;)

My two have asked about having a baby sibling. I just laugh and then tell them to think again... Even if I didn't mind the sleepless nights and the need for a diaper and formula fund, pregnancy and I simply are not friends. Not going there any more. I've got a son and a daughter that are pretty awesome kids and I am not tempting fate on this one, LOL.

Yes, and I think that was his point.

Perhaps this should be pinned with, "How to definitely get funded at a competitive rate!"

So far, there are 3 lenders on it.
I am sure many more will bid.
Not to mention SOs that will hit on the listing.

I'm thinking a borrower that will go to all this trouble will be motivated by the prospect of getting a below-market rate and to stick me personally with a pumped-and-dumped loan.

If the endorsers all come out stipulating that they are only willing to lend at the maximum rate, lenders won't bid the rate down.

I'm almost motivated to make a $1632 listing and jump through some hoops to get a 1% loan ;)

So no one's won this loan lottery yet?

It got to be at 10% or higher for Moth to stay on.

ETA- corrected. it starts at 10%

This post has been edited by Neddie on Aug-3-2007 07:48 PM

I will add a bid of 59.05 @ 1% to this listing when and if it appears.

The initial rate has to be at 10% or higher. But a borrower could start the auction at 10% and then place a large personal bid at 1.1%, knowing that I have a large bid in at 1%.

So when the "jackpot" gets up to $950, a borrower would list for $1,000 and then bid his own interest rate down, tying up only $50 of personal cash to get my $950 loan at 1%.

Oh, the thinks you can think!

Moth,
If I was a borrower, I definitely would start at 10%
It can only go lower...
I did forget that you said you would put your money at 1% on it
(I missed that top line there of the first post.)

Seriously, if someone does make it as a borrower for this, it would definitely be a special case.

I will be on vacation between August 6-20 and will check in occasionally.

If there is a qualifying listing during that time by bid may be delayed. My lending cash will continue to accumulate during that time.

I'm back from vacation and have updated the "jackpot" for the borrower who submits a qualifying listing.

A conforming loan would start with $250 (minimum endorsements) + $612 (mine) + $1050 (pledged publically by other lenders).

So a conforming loan would start off with $1912 in bids and go from there.

Good luck to all contestants.