The Wall Street journal just published a very large article in this week's personal finance section on many-to-one microloan syndication. You can read it here.
The article has a pretty good discussion of prosper and discussed the author's personal experience investing in 300 loans. I do wish she indicated the average level of risk when she stated that 8 of them are late in payments, though none have defaulted yet. Otherwise, it was a good solid article.
She also mentioned that there are other marketplaces, one called Zopa.com. Has anyone tried them out? If so, please post here about your experiences.
BTW, I was very impressed that the author succeeded in making 300 loans! I personally find that I am outbid (and often choose not to rebid) on about 1/2 of the loan auctions I participate in. A C grade risk isn't worth 13% interest in my book.
Have a wonderful weekend,