Author Topic: Anyone Else Notice  (Read 6137 times)

Dplymkr88

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Anyone Else Notice
« on: June 26, 2014, 10:37:04 AM »
LC taking a very long time to process funded and approved notes?  I've got some notes that have been sitting there for a week and haven't been approved yet. 

brycemason

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Re: Anyone Else Notice
« Reply #1 on: June 26, 2014, 10:43:36 AM »
You're new here, aren't ya?  ;D

Dplymkr88

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Re: Anyone Else Notice
« Reply #2 on: June 26, 2014, 10:48:13 AM »
Fairly.  I have 30 notes now but it's gotten worse lately, at least it seems so to me. 

EDIT:  The 5 post didn't give it away?
« Last Edit: June 26, 2014, 10:52:52 AM by Dplymkr88 »

edward

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Re: Anyone Else Notice
« Reply #3 on: June 26, 2014, 10:56:47 AM »
Dplymkr88,
Welcome to the forum. It's not unusual for it to take 2-4 weeks for notes to be approved and be issued. Then it's a month after issue before they make their first payment. We all had your same feeling when we started, just hang in there.
Edward

GS

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Re: Anyone Else Notice
« Reply #4 on: June 26, 2014, 11:30:34 AM »
Yes, I'd say the average is about one week, but they sometimes sit for up to 4 weeks, then often get cancelled.  Someone posted once from the borrower side that after the note is funded, LC continues to request documentation, such as proof of income and liabilities, etc.  Just because it's posted for funding does not mean it's fully approved.  It's one of the faults with LC.  They seem to want to push funding over approval, which means your money gets tied up in loans that are slow to be approved, or will never be approved. 

Also, it's been observed that LC slows down issuance near the end of the month, then issues a huge lot of loans on the 1st, 2nd, and 3rd, so we are in that slow time right now.
« Last Edit: June 26, 2014, 11:32:48 AM by GS »

Dplymkr88

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Re: Anyone Else Notice
« Reply #5 on: June 26, 2014, 11:48:36 AM »
Thanks for the replies guys.  My other notes sped through the process (at the beginning of the month however) I'm definitely noticing a slow down.  I think the longest I had a loan sit there was 2 weeks so far, and then of course it was cancelled (or not approved).  Again, thanks for the replies. 

Rob L

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Re: Anyone Else Notice
« Reply #6 on: June 26, 2014, 11:52:45 AM »
Funding before approval is a bit odd isn't it?
Probably made sense in the "old days" when many loans went unfunded, but not so much now. Maybe it will again in the future; who knows.
The interest rate is set and the loan funded, most often before it's approved, and LC continues to vet the loan after funding (a good thing).
However, isn't it possible that LC gains additional information after funding that, in hindsight, would sway the interest rate up or down but not disqualify the loan?
Verified income comes to mind as a possibility (maybe not the best example). Wonder what if any underwriting policy LC has that applies to these?
As noted in other posts, I am seeing more loans now than previously that have already been approved but not yet fully funded.
The discussion was at to whether or not these were better bets than "in review" loans. Don't recall if anyone actually knew.

gamassey

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Re: Anyone Else Notice
« Reply #7 on: June 26, 2014, 12:05:07 PM »
The biggest thing I have noticed is that nothing happens to my account during the last 7 days of the month.  No loans are approved, no interest is credited, nothing.  I think the LC office is closed the last week of every month.

BruiserB

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Anyone Else Notice
« Reply #8 on: June 26, 2014, 12:48:00 PM »
The biggest thing I have noticed is that nothing happens to my account during the last 7 days of the month.  No loans are approved, no interest is credited, nothing.  I think the LC office is closed the last week of every month.

Payments come in on the day of each month that the loan was issued. So if you have few loans issues on the latter dates of the month, you will receive few payments on those dates. If LC is holding up loan issuances until the end of month, then this will naturally happen.

Maybe with LC moving away from releasing and managing to monthly numbers this will change. We will probably see the effect quarterly instead.


EDIT: And not sure if LC uses the calendar year for reporting, but if so, then this would be end of Q2 this month.....if they are holding back now, they obviously have made their numbers for the quarter and are holding business back to jumpstart Q3.
« Last Edit: June 26, 2014, 05:01:50 PM by BruiserB »

RaymondG

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Re: Anyone Else Notice
« Reply #9 on: June 26, 2014, 09:24:39 PM »
However, isn't it possible that LC gains additional information after funding that, in hindsight, would sway the interest rate up or down but not disqualify the loan?

Not like that. Lender may not like extra risk or lower interest rate.

Fred93

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Re: Anyone Else Notice
« Reply #10 on: June 26, 2014, 10:13:48 PM »
Dplymkr88,
Welcome to the forum. It's not unusual for it to take 2-4 weeks for notes to be approved and be issued. Then it's a month after issue before they make their first payment.

Can be up to 45 days until 1st payment.  LC now allows borrowers to set their payment day-of-month plus or minus 15 days from the issue day-of-month. 

edward

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Re: Anyone Else Notice
« Reply #11 on: June 27, 2014, 12:35:43 PM »
Thanks, Fred, for that reminder. The time from loan posting to first payment just keeps getting better and better.   :(

rawraw

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Re: Anyone Else Notice
« Reply #12 on: June 27, 2014, 02:07:15 PM »
Higher grade notes also experience this more frequently than lower grade notes.

Lovinglifestyle

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Re: Anyone Else Notice
« Reply #13 on: June 27, 2014, 02:09:35 PM »
If they (LC) don't even know enough to know if they're going to approve them or not, how do they know what grade to assign?
« Last Edit: June 27, 2014, 05:15:56 PM by Lovinglifestyle »

rawraw

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Re: Anyone Else Notice
« Reply #14 on: June 27, 2014, 02:10:24 PM »
If they (LC) don't even know enough to know if they're going to approve them or not, how to they know what grade to assign?
I'm sure the stated information is run through the credit score card.  And then its rejected if verification disagrees with the stated information.