I was really getting into prosper, as I had almost the amount needed for it to become self sustaining. Then it went and filed for the ability to list some loans on a secondary market and wouldn't take any more applicants on until they hear back from the application board. At any rate, I had 21 loans at prosper when it went on hiatus.
With the economy the way it is, I of course expected the possibility of loans defaulting. I have been prepared for that and can handle one or two failing before my returns become negative to date. Of my 21 active loans, 1 is late and 1 is 2 months late. The thing I'd like to point out is that of all my loans, these two have the best 'credentials' of funding. I believe, however, I got caught up in the qualitative analysis and ignored the fact that they were borrowing a lot for their age/situation. My loss.
My average interest rate is still about 13% and, again, while I'm still profitable and the income stream is nice (about 40 bucks a month), the real returns and gains come from the reinvestment I cannot do due to Prosper being closed.
On a side note, I finally figured out an 'ok' way to record my prosper lending activity into Quicken - all you have to do is set it up as a security which you buy and sell, always at a dollar a share, and receive dividends from.
Prosper Update