Prosper filed its annual earnings report with the Securities and Exchange Commission showing an annual loss in 2016 of $118.7 million from revenue of $132.9 million; the loss compares to an annual loss of $26 million for 2015; 2016 was a challenging year for the industry overall; Prosper attributes the losses to lower loan volumes and higher restructuring and legal costs; in February, Prosper reported a $5 billion deal with a consortium of investors committing to invest in Prosper's loans over the next two years, which has helped to give the firm a much more positive outlook for 2017. Source
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Lend Academy provides details on the tax documents you will receive as an investor in Lending Club or Prosper loans; most investors will receive a 1099-OID which details taxable interest income from investing; other forms may also include a 1099-MISC or a 1099-B; income earned from P2P loan investing is taxed as ordinary income; Lend Academy also outlines details on capital losses and capital loss carryovers which can vary by state. Source
Alternative credit underwriting and new data solutions for broadening credit underwriting have been emerging themes in recent quarters; the Consumer Financial Protection Bureau is currently researching alternative data underwriting and many fintech companies are developing new solutions for broadening credit availability and reaching more thin file borrowers; Sasha Orloff from LendUp discusses some of the important factors for consideration in broadening credit availability in his presentation at LendIt USA 2016 highlighting some of the initiatives that are currently developing in today's market. Source