Two of the leading marketplace lending platforms reported some more bad news this week as the industry continues to struggle to gain any positive momentum.
First, we had Prosper. Late Monday Prosper released their results for the second quarter. As expected it was not pretty. Originations were down more than 50% from Q1 as they were hit hard by the general pullback from investors. Total originations in Q2 were $445 million down from $973 million in Q1 and also down from $912 million in Q2 2015. Prosper laid off 28% of its workforce in May and at that time management said that Q2 would be a significantly down quarter. But to be down more than 50% was more than most people expected. Below is a chart showing the quarterly originations back to the beginning of 2013 when the current executive team took over.