It seems that HR ( High Risk) borrowers not Prosper.com has actually fixed the HR problem. In a effort to make people more aware of the risks associated with HR loans Prosper.com has added new features while bidding. When preparing to place a bid for the loan there is a option to calculate the estimated ROI (Return on Investment). Currently even with a 29% interest rate on a HR borrower the expected ROI is still only 5.54% as of today 11/12/2007
It seems that most people werent taking the time to do some research or even visit the prosper.com forums before lending to HR borrowers. Now that its directly in your face it seems that less HR loans are being funded. Prosper now displays a message when placing a bid for low ROI loans advising that you may be able to get the same or better rates on www.bankrate.com using standard CD's. CDs pay higher yields than liquid savings accounts, but to earn that, you need to let someone else hold your money for a specific period of time.
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