With the SEC registration process completed, Propser begins offering a secondary market for lenders who wish to sell their Propser loans to other investors.
The move significantly enhances the liquidity for Prosper’s
lenders, who can auction their loans at any time on the new
auction-based trading platform. Prosper CEO Chris Larsen said the
SEC’s approval to offer its service is very important especially
when the financial system is in a crisis mode.
The company went into a quiet period nine months ago, suspending
the ability to seek loans through Prosper.
Prosper is back online with enhanced features that
include a bid floor to help guide lenders and minimum bids of $25,
cutting in half the former minimum bid to allow lenders to better
diversify their loan portfolios.
The company also boosted the minimum credit score to get a loan through the service to 640 from 520.
Initially, Prosper will be accessible to residents of 14 other states. Several other states are expected to allow the micro-loan service over the next few weeks
