Sunday, August 21, 2011

A look at "family" words

It's nice to see all the traffic we've been getting for the analysis of words from Prosper loans. A couple sites latched onto the fact that in Pre-2008 loans we saw certain family words performing appearing in loans that performed poorly.

Since that topic appeared to be of interest to people I wanted to explore it in more detail:

DescriptionTotal LoansPaidRecoveredNever Recovered
Pre 2008, D, All311759.3%60.2%39.8%
Pre 2008, D, Contain a "family" word92452.2%53%47%
2008-2009, D, All237946.7%47.4%31.6%
2008-2009, D, Contain a "family" word48743.3%43.9%35.5%
2010, D, all131413.9%13.9%4.9%
2010, D, Contain a "family" word15514.8%14.8%2.6%
2011, D, All11932.8%2.8%0%
2011, D, Contain a "family" word1031.9%1.9%0%

It looks like the case is true through the 2009 loans so far. The 2010 and 2011 loans are too young to draw conclusions, but given the initial numbers I'm not certain that I would be comfortable saying that loans with a "family" word are a bad investment.

"Family" words are defined as: husband, child, children, mother, daughter, son in either the title or description of the loan.

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