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For the non-income verified loans on Lending Club, my understanding is that they have to verify their income at some point before the loan is issued, right?
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Jul 25, 2013 19:53
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Looks like lending club may be selling out of loans tonight - anyone seen that before?
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Aug 24, 2013 03:42
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baquerd posted:For the non-income verified loans on Lending Club, my understanding is that they have to verify their income at some point before the loan is issued, right? I was misinformed earlier in the thread - I have a ton of loans issued without income verification, which is extremely disturbing.
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Sep 4, 2013 01:28
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April posted:I don't think they actually issue loans without verifying income. Otherwise, there wouldn't be that 2-week gap between loans getting funded and issued. They most certainly do, e.g. https://www.lendingclub.com/account/loanDetail.action?loan_id=6624744 or https://www.lendingclub.com/account/loanDetail.action?loan_id=6716709
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Sep 4, 2013 02:24
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Vomik posted:Otherwise you'd have to explain, because someone who never goes delinquent is, by definition, never going delinquent. I don't know if he's right, but I could see an issue where someone who pays late repeatedly could be less of a default risk (which is the only kind of risk we care about in P2P lending) than someone who never goes delinquent. The late guy keeps paying late, but the never late guy files Chapter 7 out of the blue. Everything I've read about Lending Club statistics (which is quite a bit) tells me this is not the case though.
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Nov 19, 2013 05:28
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LorneReams posted:Random pool of borrowers who go multiple times one payment past due but cured, vs random pool of borrowers who never defaulted...one and two year default rates were consistently higher for the pools that never defaulted. I'd like to see that sampling method. I can think of a couple potential issues: 1. Small sample size of borrowers who go late multiple times without defaulting 2. Age difference (average age of loans for the borrowers who have never defaulted is much lower)
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Nov 19, 2013 05:53
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Keisari posted:Well, if you guys can keep those 12-15% rates to be annual returns I can see you guys earning a very satisfactory return on your invested capital. I think those are really good returns considering you are loaning money and not owning equity in businesses. Since I started serious business Folio trading, I've made 21% XIRR over the last three months on roughly $20k.
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Dec 12, 2013 19:02
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SpelledBackwards posted:How'd you figure out what on earth to search for? The FolioFN interface is just godawful, and I took all the money I had wide-eyedly transferred in there and transferred it back to my savings account because I didn't see how to start off (being in Texas, I can't use regular Lending Club). When most of the list of notes is flooded with ones that expect to provide a negative rate of return at purchase time, I don't know why people would even look at them, and why anyone expects to sell those off. It just clutters up the list. If you haven't seen it lately, the Folio interface got a major overhaul and actually it's made it harder to find good notes due to the added competition, but I wrote a custom program to scrape the notes for me, run statistics on the credit scores, look for red flags, etc.
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Dec 13, 2013 04:20
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slap me silly posted:About loving time. I can't buy notes in my state and I dropped the whole game because of how lousy the trading interface was. What did they improve? I really haven't felt like writing a web scraper for that poo poo but maybe I'll take another look now. 
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Dec 13, 2013 05:34
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Sure, I oversimplified. Another type of risk to consider is company risk. Also, to add on to your post, there are origination fees which lower your prepayment risk for reasons of dropping interest rates.
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Dec 26, 2013 22:32
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Continuing on what Swigline is saying, I feel that keeping LC or Prosper loans in an IRA is a bad move due to the uncertainty and company risk involved, which is a real shame considering the *massive* tax advantages for these types of instruments in particular.
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Dec 28, 2013 02:58
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Lelorox posted:What kind of taxes are you guys paying on your returns? Highest marginal income rate, though I am able to directly deduct all of my losses from income due to my losses being less than $3k and having no other capital losses.
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Jan 9, 2014 14:05
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Swingline posted:How do they report losses? When a loan is fully in the "Charged Off" status, the consensus is that you can discharge it as bad debt. LC does not actually report your losses in any way on tax forms, at least not so far historically. Many tax professionals have no clue what to do with LC notes, and there's been many page long discussions involving various tax people and people relaying the advice they have received from tax people. The easiest thing to though, as you note, is to unload your notes before they default so you never have to deal with the ambiguity and it's nice straightforward capital losses.
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Jan 10, 2014 04:26
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Sub Rosa posted:Considering how eager lenders are to throw money at notes, is there a sub-prime version of all this yet for those of us with credit too poor to borrow on LC or Prosper? Just become a payday loan place franchisee.
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Mar 26, 2014 16:51
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April posted:Today I hit 1,000 open notes. (for my purposes, notes that are not issued yet, issued, current, and late are open. Notes that are fully paid, defaulted, or discharged are closed). Nice. I'm not quite there, but I have over 1000 actual notes. My breakdown: quote:In Funding 0 (I don't buy new notes anymore, just Folio) As you can see, our numbers are quite a bit different. I sell off my 31 day+ late notes a week or two after they miss the second payment in a row because it makes the tax treatment more straightforward than if they charge off and it's nice to get the immediate money for them. Due to the recent changes, I can no longer sell bankruptcy notes, so I'm about to have some additional charge-offs (the 8 you see are from a while ago when I didn't do folio). My XIRR is sitting around 17%.
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Apr 17, 2014 14:19
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April posted:I should start selling my late ones. How much of a discount do you typically put on them? Depends on what's going on with the note. If the credit score has tanked, or there's no borrower contact, 90-95% discount. If everything looks good other than them not paying, I'd start more around a 75% discount and increase it towards 90%.
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Apr 17, 2014 15:16
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Hypothetically, if you just lied there would be no verification.
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Jul 8, 2014 03:46
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SiGmA_X posted:Is there no way the IRS would find out? It's not an IRS restriction. There's basically no way it would ever come up, unless you're suing Propser or you really pissed off Nevada's AG and they start digging hard into your financials to find something to pin you with. Caveat: I am not a lawyer and the IRS may in fact send you to Guantanamo if you lie on this form.
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Jul 8, 2014 16:30
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SiGmA_X posted:I thought it was a state law thing. I know very very little about this aspect of investing... Could I simply use a PO Box in a different state? The restriction is there because you're obviously too poor to understand what you're investing in. You have now reinforced the idea you don't understand what you're doing by asking this question instead of clicking the other radio button.
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Jul 9, 2014 00:26
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Gothmog1065 posted:Hey goons. I'm looking at starting up a business and Lending Club for a startup, looking to get about $30k. I was thinking of using lending club, but I was wondering what the likelyhood of my loan getting funded was? I have a credit score of 707, and I do carry a bit of cc debt, but it's all paid on time monthly. Do you think that if I applied for a 30k loan, it would go through? Your loan's going to go through most likely, no telling what your interest rate is going to be though I'd guess around 16%. There's no early payoff fee.
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Oct 7, 2014 19:29
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Gothmog1065 posted:Doesn't matter either way. I ran through the pre application, they were only offering to give me 6250 at 27% interest. Ah, your income must be very low I'm guessing? A 27% interest loan is basically the worst possible loan lending club can possibly give (G5). Either your credit is much worse than you made it out to be, or your income is crap. Keisari posted:I think 16% would be an absolutely ludicrous rate for any business loan. Prohibitively expensive. It's like founding a business on credit cards Yeah, there's definitely a reason that business loans on LC have a high default rate.
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Oct 7, 2014 20:07
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Devian666 posted:I realised recently that each note provides cashflow. I can see cashflow increasing significantly as the compound interest effect allows buying more notes. Does that lead to significantly higher interest received over time? Well, yes. More notes generally provide more interest than fewer notes.
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Nov 5, 2014 04:53
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pathetic little tramp posted:So fun fact, I just decided to finally give this a shot as I have a really good salary these days, but I'm maybe moving to Kentucky soon. I did some reading about requirements and apparently to join Lending Club in Kentucky you must be an accredited investor. What this means, according to the commonwealth of Kentucky and the United States of America, is that I must have a net worth of over a million dollars (not including the value of my home). OR, I can just have a salary of > 200,000$ and have collected this salary for the past 2 years. You pathetic little tramp, don't you know that the SEC doesn't check up on that? (Also, that since LC went public, my understanding is that AA status is no longer required).
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Aug 8, 2015 03:48
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SpelledBackwards posted:What advantages does BV have over LC's automatic investment feature? More specific/narrow criteria for choosing notes? Yep, custom metrics and statistics that aren't otherwise available, and a different risk model. Speed of snatching up notes is somewhat questionable, as LC has never really come 100% clean on how they select auto-investable notes as far as I know.
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Sep 27, 2015 04:11
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Devian666 posted:My returns took a few hits after write offs but otherwise the gross income is alright. How did you make the chart?
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Mar 8, 2016 15:05
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ShadowHawk posted:Anyone here have thoughts on WeFinance? A personal friend needed to finance her programming bootcamp and I chipped in a few thousand dollars -- I felt like I had a lot more information on her creditworthiness than banks ever would. At first glance, it appears to be a hilarious market that will overflow with scammers and will utterly fail to compensate lenders for risk.
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May 31, 2016 11:58
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etalian posted:People rush to invest in a new hot niche investment concept and end up getting burned how shocking. The regular note investors aren't getting burned here. I opened up a Prosper, but I really don't like their user interface (can't seem to set saved search filters).
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Jul 9, 2016 22:18
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a cat posted:Anyone else planning to back away from Prosper because of this? This is hosed for them, I'd have to think. I've recently been building up my Prosper balance but will now be looking for another LC alternative (I still use LC as a primary P2P site) to diversify and won't be adding more. I'll ride it out otherwise, but not sure about re-investing returns.
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Oct 12, 2016 13:10
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Seems like Prosper new issues are way easier to get E-HR grades all of a sudden.
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Oct 17, 2016 17:13
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This is a very credible and thorough blog on lending factors: https://www.orchardplatform.com/blog/
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Dec 26, 2016 06:15
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ohgodwhat posted:Hmm, isn't poor performance here kind of a bellwether for the wider economy as well? Prosper isn't performing like poo poo. Lending Club clearly relaxed their lending standards to build more volume, or otherwise their risk model is turning out to be poo poo.
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Apr 8, 2017 00:47
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Devian666 posted:My return after tax is a bit over 9%. That is a bit more consistent now that NZ's main P2P lender has been established for a few years now. I had similar returns for many years, but the last two years It went from that, to 7.5%, to 4.7% returns, to like 0.5% returns this year (annualized). I consider it great that I haven't actually lost principle, but the returns are discouraging lately.
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May 12, 2017 01:46
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