[maxtower]

For now these types of places seem like a better deal for borrowers than lenders.

In theory I like the idea, because it would seem that by cutting out the middle man, better rates for both borrowers and lenders could be had. However, it appears that in practice the normal lending channels are possibly more efficient than prosper. People with good credit can generally get a cheaper loan by using their house or car for collateral and therefore get much better rates than can be obtained on prosper. You're left with the bad borrowers.

I am hopeful in a few years, the market will get better and be profitable for lenders.