Comments on: Default Rates broken down by Credit Grade and DTI Buckets

By: knix

knix — Sun, 25 Nov 2007 16:24:21 +0000

Thanks for the comment pjz. You have a good point there on the skewed data. I definitely plan on doing some more analyses on defaulted loans as more data becomes available.

By: pjz

pjz — Sun, 25 Nov 2007 15:44:36 +0000

It is hard to come to any conclusion on defaults vs DTI on Prosper because Prosper skewed the data by strongly recommending low DTI listings. Thus a larger percentage of low quality loans were funded at low DTI contributing to higher defaults for low DTI. A better analysis would be DTI versus extended credit date in each credit grade. That analysis will have to wait till more Prosper data is available.

By: Tom

Tom — Thu, 22 Nov 2007 11:04:16 +0000

Nice analysis. Thanks for doing this.