A few people have inquired about how the “Consensus Rating” is being generated on the Listing Picker page under Lending Strategies. The idea behind the Listing Picker is to identify listings bid on by lenders who have good estimated ROIs. The more lenders with good ROIs the higher the consensus rating becomes.

The formula that generates consensus ratings is as follows: Look for all lenders with an average portfolio age of greater then 4 months on a listing. If there are more then 3 such lenders then get the average estimated ROI of these lenders. Only listings that have an average estimated ROI of > 5% will be shown on the Listing Picker page.

Qualifications for a lender to be included in generating the ratings are as follows:
1) Portfolio age weighted of greater then 4months.
2) 100 Loans made or $5000 invested

Consensus Rating Breakdown:

0 Stars = 5% - 6% Avg. Estimated ROI
1 Stars = 6% - 7% Avg. Estimated ROI
2 Stars = 7% - 8% Avg. Estimated ROI
3 Stars = 8% - 9% Avg. Estimated ROI
4 Stars = 9% - 10% Avg. Estimated ROI
5 Stars = 10%+ Avg. Estimated ROI

Definitely don’t use this tool blindly to place bids, but I find it helpful for quickly sifting through the thousands of listings on Prosper.

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