Author Topic: E-Grade at 6%?  (Read 2012 times)

Bohb Daishi

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E-Grade at 6%?
« on: December 19, 2013, 04:21:58 AM »
https://www.lendingclub.com/account/loanPerf.action?loan_id=2088967&order_id=3985813&note_id=15644069

Looks like sometime after May the borrower got a substantially reduced rate. I wonder if it's because they were deployed in the military?
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Zach

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Re: E-Grade at 6%?
« Reply #1 on: December 19, 2013, 04:46:45 AM »
That's pretty much always the case - LC doesn't reduce interest rates after origination for any other reason that I'm aware of.
« Last Edit: December 19, 2013, 07:16:38 AM by Zach »

core

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Re: E-Grade at 6%?
« Reply #2 on: December 19, 2013, 04:57:25 AM »
I have seen rates change from say 14% to 11% and other odd changes that weren't the magic 6%.  At the time I just assumed it was LC's stuff going haywire (as usual) and I didn't give it much thought.  At the time I didn't think to make a note of the id and check the actual interest payment a month later.  It wouldn't take much time to dig them up again but I'm sure they've been "corrected" by now... I can't think of any reason LC would legitimately change them.


mikedave

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Re: E-Grade at 6%?
« Reply #4 on: December 25, 2013, 07:20:34 PM »
How does this work?  Suddenly a note at 20%+ gets reduced to 6%?  That would suck

New Jersey Guy

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Re: E-Grade at 6%?
« Reply #5 on: December 25, 2013, 07:23:24 PM »
Quote
How does this work?  Suddenly a note at 20%+ gets reduced to 6%?  That would suck

Deployed military get a break.
Return over deposits:   66.82%
IRR:   86.54%
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Keltset

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Re: E-Grade at 6%?
« Reply #6 on: December 26, 2013, 12:07:14 PM »
I've had several of these notes and it just doesn't bother me to see the reduced rate knowing it is money I lent to someone serving the country. I would prefer the higher interest rate but I "feel" good about those notes and never had one miss payments or default. Granted, I have not done any historical analysis to determine if they are "less" likely to default. I am suspecting the pool of these notes are to small to have meaningful data.