1. RateLadder.com 1 Prosper.com Lender Blog, Lending Strategy, Rate Analysis and Personal Finance Kevin Gillett kevin@rateladder.com Prosper Days February 12, 2007

2. RateLadder.com 2 About Kevin BSE CS Princeton University Member of Princeton Team that Beat UCLA in NCAA in 96 Panoramic Software Oracle I-Net

3. RateLadder.com 3 About RateLadder.com RateLadder.com explores all aspects of lending on Prosper.com using personal experiences as examples while adding rigor to my own journey. Always looking to improve return on investment and reduce risk. WordPress Prosper Data in SQL Server 2000 (DTS and SQL Queries) Crystal Reports Crystal Enterprise

4. RateLadder.com 4 Why RateLadder.com? Does this picture help or hurt? My wife says, There is no way we are lending her money! A friend says, She is kinda hot. I should look into Prosper. I say, Give me cold hard facts: credit, debt, and income. Thank you Prosper for verification.

5. RateLadder.com 5 Basic Strategy Standing Orders for Auto Funding Listings With Credit Risk Characteristics Matching My Risk Tolerance (No HR, No NC, and if they exist only near perfect E) Interest Rates Above the Weighted Average for Similar Loans from the last 100 days Review Each Loan to Ensure Standing Orders are Finding High Interest Loans with Desired Characteristics Review Weighted Average Monthly

6. RateLadder.com 6 Data Enhancements SQL Server DTS (Data Transform Services) to automate daily data load. Add ListingKey to the Loan Table Add a metadata table (AllDays): One column: aday DateTime. One row for each day from Feb 1, 2006 until Today. Add View: DailyOpenListings -- join between Alldays and Listing looking for open listings Add Views: DailyWeightedAverage -- join between Alldays and loan calculating the last 100 days average interest rate for loans of matching credit grades and similar sizes

7. RateLadder.com 7 Was This Good Loan? A Credit – DTI 29% -- $22,000 @ 14.55% M y standing orders only find loans with 0 current delinquencies, 10 or less delinquencies in the last 7 years, and 2 or less public records in the last 10.

8. RateLadder.com 8 Loan Review – A Credit – DTI 29% -- $22K – 14.55% Loan Parameters: A Credit. DTI 29% +/-5%. $20,000 +/- $5,000. Using Loans from the past 100 days. # of Loans12 Avg Amt$21,000 Avg Rate13.61% Standard Deviation 2.37% High Range 15.98%

9. RateLadder.com 9 Resources Loan Rate Analyzer Crystal Report Available at RateLadder.com. (My Crystal Enterprise 8 License is for only 5 simultaneous users. If you are asked to login, then wait a few minutes and try again.) DTS Details and Data Enhancements will be available at RateLadder.com in near future. Interest Rates Average for Similar Loans from the Last 100 days for my Loan Sizes will be Posted Monthly at RateLadder.com.

10. RateLadder.com 10 What if I Want… Email kevin@rateladder.com with your request. If I like it or find it useful for my purposes I will implement and make it available at RateLadder.com I am available for consulting. Email kevin@rateladder.com with your proposal.