Oh man, that’s happened to you several times!! I don’t mind most early payoffs; sure, there’s an opportunity cost to me (I think that’s the term - time my money isn’t earning interest) but to lose money because of it BURNS.
I’ve got two loans that are in their grace period right now. One due on the 28th, it’s a B3 with 13 payments and the borrower’s credit score has dropped 2 notches in recent months.
The other was due on the 29th and the collections history says “payment failed”. A B4 wedding loan, and the credit rating plummeted 5 notches a couple months ago, so this is no surprise. They’d made 7 payments.
Which reminds me, I have another B4 that had plummeted, that is still keeping current, must check on that one.
There are a couple of folks up-thread who are fairly big investors; I’m more of a tentative one myself (a few bucks here or there, nothing I can’t afford to lose).
That other B4 loan I mentioned, I just checked on it and noticed that the early January payment was fairly late - due on 1/4 and completed 1/20; I’d been watching that then but it slipped my mind. I fully expect it to go south at some point fairly soon. Their credit rating plummeted about 7 months ago, so I’d guess they’re doing the debt juggle and something is catching up to them. Its most recent payment was due 3/4. so Friday evening should be pretty telling (as in, that’s when I should see it credited).
So I had my first 2 notes pay today, I see that the payments have cleared today (the ‘completion date’ is today) but my ‘payments received’ still shows 0. I’m assuming the payments will show up in the next day or so?
Also, I had one of these notes listed on Folio, someone purchased it today but it won’t settle until tomorrow. I guess I’ll find out in the next few days but I assume the buyer will get the payment?
I’m at 18.24% NAR, woohoo! I know it won’t last but this sure is fun.
I think that must be it. I just went to the Foliofn site for giggles, and filtered for 31-120 days late, and sorted by the markup / discount column - and the top few have things like principal due 13.00, asking 22.00. WTF???
I’m also guessing they do NOT age loans off of the platform when they’ve been there (someone earlier suggested they do); there’s one loan there that hasn’t had a payment in about 15 months, one payment left, and they’re asking more than the principal balance (though not as crazy as the one I mentioned above).
And another bizarre one: there are some that have gone several months late - but their credit score has IMPROVED (at least since the loan was issued). Doesn’t LC report these loans to credit agencies???
I thought I remember reading something in Folio about how notes are not supposed to be marked up over 70%, but I guess they don’t enforce it too closely.
I also thought I read somewhere that LC does not report to the agencies, even though they say they do. Not sure if this is true.
To answer my own question about the pending sale, the payment showed up in my account today, even though the sale was yesterday. I suppose it’s based on the settlment date, which is today.
I wish LC still had open ended questions for the applicants, reading some of the questions and responses on the old notes listed on Folio are pretty entertaining!
Waaaayyyy back early in the thread, I complained that Lending Club can’t operate in Oregon and wondered what the reasons might be. Somebody contacted somebody and I was told that Oregon didn’t approve the application because, I think, of some sort of regulation.
Well, I finally contacted my state senator and asked what the real deal is on this. She actually looked into it and responded, saying that Lending Club’s outside counsel never replied to Oregon’s questions about how they were structured (and other questions about the SEC, apparently) despite several attempts, so the application was denied. There is another person to person lending organization that does operate in Oregon, so there isn’t any regulation prohibiting LC from operating here other than they’re apparently too lazy to refile their app.
I copied the email and sent it to LC a week ago and have yet to receive a response, so I’m thinking I wouldn’t be likely to do business with someone who doesn’t answer the mail.
Well, today they answered my email and addressed it to “Dear Ted”, which is not even in the same half of the alphabet as my name (which I signed to the email). They also gave me the same double talk about how Oregon had problems with how they were structured. They didn’t respond to the comment about them not answering Oregon’s questions. I think I’ll check out the competition.
What is the competition thereabouts? I know about Prosper, have you found others?
An update on a couple of mine: I have two B4s that have been threatening to misbehave. One (a debt refinance) had plummeted 5 slots a few months ago. Their January payment was late as well - completed 14 days after it was due. But since then they’ve recovered one slot.
A wedding loan had plummeted 5 slots about 3 months ago, last month’s payment was a few days late, and it dropped another slot.
I’ve got an A2 that should have completed yesterday but hasn’t yet. All my others seem OK (no red flags) but always subject to change. I just funded a D3 loan today, and my most recent prior was also a D3 (though a 60 month loan so it was “really” a C4 or thereabouts).
One of my loans was 30 days late. There was some back and forth between the customer and LC with no resolution. I decided to put the note up for sale, just for kicks. This morning, I saw that someone purchased it from me.
Trust me, I’m not complaining; the last thing I want is another charge-off, but why would someone purchase a note that’s in arrears?
Did you discount it at all? That’s the only reason I could think of to do so (i.e. they’re hoping it’ll come current, they spend 20 dollars on a 22 dollar balance, instant 2 dollar profit).
I funded a loan that was listed as approved, and it was funded 100% as of 3 or 4 days ago, but it is still shown as in funding. Is this normal?
I’m still having a bit of luck buying and selling on Folio. I’ve been buying notes at a discount that just entered the grace period, with no prior history of late payments, and no significant decline in credit score. Once the trade settles, I resell the note at a markup, but still a discount. It’s still a small sample size, but I’m 4 for 4.
Still pretty happy about LC at this point, and it’s a bit of an addiction! If I had any complaints, it would be about Folio. I wish they had more filter tools, since you can only do some basic filters and still have to sort through tons of notes.
I’m actually a bit surprised that some of the loans get funding. I’ve seen a few where someone wants to consolidate credit cards that are 10-12% with a loan that is 19%. Wouldn’t that be a big red flag? Although I can kind of see the logic, since it seems that there is no end in sight when you are just paying the minimums on credit cards.
Yup sometimes it takes a while to settle out there could be some other question looming, income verified? approved pending some other bit of paperwork that has not arrived? We dont get to see all the logistical issues we are just underwriting.
So I logged on this morning and noticed something weird…in Folio, under ‘cancelled sell orders’ I see this:
Date Note ID Note Title Note Status Sale Price Order Status
03/22/12 3845551 Auto Current $21.00 Canceled, Loan PAYMENT
03/22/12 3845551 Auto Current $21.00 Canceled, Loan PAYMENT
This is a note that I sold on the 19th. The last payment on the loan was on the 15th. Has anyone seen something like this before?
Another thing about Folio…I noticed yesterday that someone had bought a note I had for sale, and it was listed as pending. I just checked in, and it looks like the note is listed as an open sell order. Is it possible to cancel a sale after you’ve purchased a note, before it settles? I don’t recall seeing that option when I bought a note before.
I don’t think so, at least not that I’ve seen, and I’ve looked. I purchased a note some time back that I immediately regretted, but was stuck with it. The payments have been timely since I purchased the note, but his credit is pretty bad so I just keep an eye on that particular loan.
That’s what I thought, then again there is a ‘canceled buy orders’ section on Folio. I thought I had looked as well. Maybe there is a way to do it if you contact the Folio folks directly?
For this note, a payment posted between the time that it was purchased and the time that it settled, and the payment was credited to my account. Maybe the buyer expected to recieve the payment and somehow canceled the transaction when they noticed that they would not receive the payment? It still seems strange to me.
I’ve wondered who gets the payment if the payment is posted between the time the buyer purchases the note and the trade settles. Folio says most trades settle on the same day if the purchase is before 11 am PST, so it should be a rare occurrence, but in my experience they have always settled the next day or even the day after that.
Obviously it would have affected a buyer’s decision if the note had a lesser value than what they thought. I can see this being a big problem if a loan is paid in full between the purchase and the time of settlement. The buyer would be out of luck if the seller received the payment!
brown520, I’m watching your Folio experiences with interest (sorry, pun was unintentional…). It’s annoying that there isn’t an explicit LC forum where we can connect with a lot of other investors to share experiences, some of them might know the answers.
A couple of loans misbehaving right now: one was due on the 13th (an A2, over a year old!) and there is “sent email to borrower” and “borrower contacted LC” note. Yesterday there was “on payment plan” and “borrower agreed to payment plan” with a payment due date of yesterday, but that’s gone today and it’s back to “in grace period”.
And a B3 credit card consolidation, first payment was due on the 19th - it failed today. Just noticed a red flag: the loan was for 16,500, but he said he’d be paying off a Visa account - with a balance of 23,000. Hmmm.