I was informed this morning by an astute reader that Prosper.com has discontinued lending for Pennsylvania based lenders. Seems like there’s quite a bit of buzz flying around about this. Here’s the official e-mail that was sent out to lenders (Thanks to Tony for sending this to me!)
We are writing to inform you that we have made the decision to discontinue accepting new lender registrations, and new bids from existing lenders, from residents from the Commonwealth of Pennsylvania. Our decision to make this change was based on our ongoing discussions with regulators in Pennsylvania, which led us to believe the change was necessary to comply with their current interpretation of their state regulations.
You will continue with your existing lender agreements, have your existing loans serviced, and be able to transfer funds out of your Prosper account. However, you will not be able to place new bids on listings or transfer money into your Prosper account.
This change does not affect borrowers residing in Pennsylvania, who remain free to create loan listings on Prosper.
We apologize for any inconvenience this change may have caused.
We thank you for being a member of the Prosper community. We hope to make Prosper available to lenders in Pennsylvania again soon.
You can read Prosper’s official announcement about this here along with some lively discussion… I was curious how many lenders this would effect, so here are some statistics about PA based lenders. Note that this may not be complete since I don’t have location data for every lender.
- Total Lenders From PA: 760 (296 of which have placed bids in the last 30 days)
- Total Money On Loan From PA Lenders: $1,026,354
Largest PA based Lenders:
I certainly hope that Prosper and the powers-that-be in PA get this straightened out soon.