I assume as they are getting outside funding, someone has vetted their underwriting models and loan population. I was curious to learn more about their sources of funds, number of current employees, i.e. fund performance, unfortunately nothing written here.<p>They are mining more information and winning a lower rate for it. To that end they are succeeding. Without understanding the source of funds, and any guarantees they are making, it&#x27;s important that they provide long-term durable ROI to justify the lower rates.<p>If they get the lower default rate they are paying for, then Earnest has created a superior product. Their default rate doesn&#x27;t and shouldn&#x27;t have to be zero, but I would be afraid of trying to make up on bad underwriting with poor servicing tactics. I hope both centers are striving to be excellent at their respective jobs.<p>Since default rates on these loans is high and rising, there is a strong incentive to lower it. If default rates were consistently low, paying more for a marginal additional reduction wouldn&#x27;t be worthwhile. When default rates are trending higher, I believe you need exponentially higher interest rates in order to break even.