Been on prosper for a few years now. Have a portfolio of around $10K . One of the most important factors for me when choosing a loan is the debt to income ratio.
I just spoke with a Prosper CSR to better understand how it is calculated. Here is what I got:
* Ratio is pulled from the reporting agency.
* Agency may or may not include mortgage payment in the ratio calculation. In most cases it is not included.
* Student loan payments are excluded from the ratio.
* The full requested amount from Prosper Loan is already included (added) in the D/I calculation.
Now assuming this is true, it seems that this criteria is very weak to rely on when choosing a loan to invest in as most likely mortgage and student payments can easily have the largest payment amounts of a borrower.
Do you use this filter when it comes to loan selection? anyone has any different information from the one I got from Prosper CSR?
Would love to get your insight on this.