Author Topic: "Amount Funded By Investors" versus "Total Amount Funded" ??  (Read 7704 times)

viking

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"Amount Funded By Investors" versus "Total Amount Funded" ??
« on: November 12, 2012, 04:18:38 PM »
In the downloaded LC LoanStats.cvs there are two headings for "Amount Funded":
"Amount Funded By Investors" and "Total Amount Funded", where "Total Amount Funded" is larger.
What is the difference between the two? If a notes is not 100% funded by investors, where does the balance come from?

Peter

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Re: "Amount Funded By Investors" versus "Total Amount Funded" ??
« Reply #1 on: November 13, 2012, 02:05:00 PM »
This is where Lending Club has stepped in and funded the loan themselves. This happened a lot in the very early days but I don't think it happens at all any more.
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viking

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Re: "Amount Funded By Investors" versus "Total Amount Funded" ??
« Reply #2 on: November 13, 2012, 02:59:30 PM »
This is where Lending Club has stepped in and funded the loan themselves. This happened a lot in the very early days but I don't think it happens at all any more.
In 2011 and 2012, a total of 65,220 loans were funded. Of these, 11,663 loans (17.9%) were partially funded by "unknown" = Lending Club(?).

For example, Loan ID 110883 issued 2/1/2012, shows "Amount Funded By Investors"= $6,325 and  "Total Amount Funded" = $35,000. Thus, $28,675 did not appear to come from "investors".

NOTE that when calculating ROI and in the case of a default, the results would differ if we use "Amount Funded By Investors" or "Total Amount Funded"
« Last Edit: November 13, 2012, 03:03:13 PM by viking »

yojoakak

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Re: "Amount Funded By Investors" versus "Total Amount Funded" ??
« Reply #3 on: November 13, 2012, 10:34:26 PM »
From one of Peter's blog posts. Is this still the case?


"Every P2P Loan is Getting Funded at Lending Club

It hasnít happened since September of last year. That was the last time a loan was listed on Lending Clubís platform that did not get funded.

Now, of course, not every listing becomes a successful loan. Some are removed because they fail some form of verification; others are removed by the borrower. But according to Lendstats the last time we saw a valid loan on Lending Club not get funded by investors was in September, 2011..."

http://www.lendacademy.com/every-p2p-loan-is-getting-funded-at-lending-club/

Peter

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Re: "Amount Funded By Investors" versus "Total Amount Funded" ??
« Reply #4 on: November 14, 2012, 06:24:29 PM »
Well this is very interesting. It is clearly not LC Advisors because the amounts are too small, but it does appear that Lending Club is doing its own funding of some loans, often to the tune of just $25. I will have to do some more digging to find out the answer to this one.
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viking

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Re: "Amount Funded By Investors" versus "Total Amount Funded" ??
« Reply #5 on: November 22, 2012, 06:18:36 PM »
I believe that the there is a special group of investors (not LC themselves) that are also invested in the loan, apart from the "regular investors". Thus, the "Total Amount Funded" (and related categories) should be used for any calculations rather than "Amount Funded By Investors".

Note that it appears that LendStats is using  "Amount Funded By Investors" (at least for an individual example that I checked).

nonattender

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Re: "Amount Funded By Investors" versus "Total Amount Funded" ??
« Reply #6 on: November 22, 2012, 06:52:18 PM »
Curiouser and curiouser...  I know LendingClub had a credit line with Silicon Valley Bank a year or two back, which they were using to lever up and fund some portion of their own loans - but, I was under the impression that that activity had long ceased, after "funds".

Maybe you don't have to do searches for loans to blenders - maybe they're all loans to blenders, with credit risk already attached?  ;)

Love to hear the explanation of this one.
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yojoakak

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Re: "Amount Funded By Investors" versus "Total Amount Funded" ??
« Reply #7 on: November 23, 2012, 05:11:23 PM »
Well this is very interesting. It is clearly not LC Advisors because the amounts are too small, but it does appear that Lending Club is doing its own funding of some loans, often to the tune of just $25. I will have to do some more digging to find out the answer to this one.

Unless I'm misunderstanding these SEC filings, it's not LendingClub either.

They all say "Amount of corresponding member loan funded by Lending Club: $0" for every loan. (At least in the 3 most recent filings I looked through.)

For example:



http://www.sec.gov/Archives/edgar/data/1409970/000140997012001337/0001409970-12-001337-index.htm
http://www.sec.gov/Archives/edgar/data/1409970/000140997012001308/0001409970-12-001308-index.htm
http://www.sec.gov/Archives/edgar/data/1409970/000140997012001279/0001409970-12-001279-index.htm


tanguyburtin

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Re: "Amount Funded By Investors" versus "Total Amount Funded" ??
« Reply #8 on: December 08, 2012, 09:04:41 AM »
Hi

I'm new here but I came as your posts caught my attention. Here's why:
I'm currently writing my Master's thesis on P2P lending and my research question articulates around the determinants of repayment performance on Lending Club.

I'm also interested in knowing what this amount funded by investors really means. My assumption is that it is the share of the loan funded by lenders of the platform, whilst the outstanding amount would be funded by LC itself. One can also observe that these amounts have rebalanced over time with more and more loans being funded mainly by "investors" and less and less loans being funded "LC". This can be explained by the fact that LC first funded most of the loans that were listed on the platform in order to launch the business and gain momentum and popularity among the participants (i.e. borrowers and lenders), then as the platform became more popular, LC peu ŗ peu withdrew itself and let the real lenders fund those loans.

@Yojoakak: By the way as you correctly pointed out Lending Club does no longer fund any loans at least in the last 3 months. But they did clearly mention in more ancient Prospectus or SEC Filings that they did fund loans!

However I'm still uncertain about who those "investors" really are as they could also be formal investors (not lenders) like pension funds, asset managers etc.

It would be interesting and very helpful if someone could provide responses to those question marks.

Thanks

Regards,

Tanguy