Author Topic: Lending Club to Offer Super Prime Loans!  (Read 10211 times)

PeerSocialLending

  • Jr. Member
  • **
  • Posts: 79
    • View Profile
    • Email
Lending Club to Offer Super Prime Loans!
« on: November 19, 2014, 12:26:18 PM »
Interesting new offering from LC:

2 year for 10k or less starting at 3.99%
3-7 year for 10-50k starting at 4.99% and 5.37%

Full PR here:

http://www.prnewswire.com/news-releases/lending-club-launches-aa-super-prime-loans-283189791.html
-Ryan
p2p lending blogger @ www.peersociallending.com

turing

  • Full Member
  • ***
  • Posts: 222
    • View Profile
    • PeerToPeerQuant.com
    • Email
Re: Lending Club to Offer Super Prime Loans!
« Reply #1 on: November 19, 2014, 01:40:07 PM »
I wonder what qualifications will be required to get those terms?

Those rates are less than their current A1 rates (6.03%).  So Lending Club must be aiming for an entirely different level of borrower who they think they aren't getting right now because their rates are too high.

BBingo

  • Newbie
  • *
  • Posts: 41
    • View Profile
Lending Club to Offer Super Prime Loans!
« Reply #2 on: November 19, 2014, 01:45:42 PM »
I know of a few folks who use lending club and prosper for bridge loans for their fix and flips for real estate or to actually buy in cheaper areas. Guessing they might qualify and use the higher cap for bigger projects.


Sent from my iPhone using Tapatalkz.  U

rawraw

  • Hero Member
  • *****
  • Posts: 2750
    • View Profile
Re: Lending Club to Offer Super Prime Loans!
« Reply #3 on: November 19, 2014, 01:57:24 PM »
I wonder what qualifications will be required to get those terms?

Those rates are less than their current A1 rates (6.03%).  So Lending Club must be aiming for an entirely different level of borrower who they think they aren't getting right now because their rates are too high.
Or it's borrowers they feel they are overpricing.  I'm interested to see the requirements on this, as I have a fear it'll be largely FICO driven with no verification of income or employment (which can be scary, depending how its done and what percentage of business it represents).

core

  • Hero Member
  • *****
  • Posts: 1784
  • Your loss is my gain
    • View Profile
Re: Lending Club to Offer Super Prime Loans!
« Reply #4 on: November 19, 2014, 02:43:20 PM »
I wonder if they will be sending out a mass invite email to all existing 6-8% borrowers.  Get ready for the early payoffs!

mo

  • Full Member
  • ***
  • Posts: 158
    • View Profile
Re: Lending Club to Offer Super Prime Loans!
« Reply #5 on: November 19, 2014, 07:40:05 PM »
I wonder if they will be sending out a mass invite email to all existing 6-8% borrowers.  Get ready for the early payoffs!

That would be pretty f*ed up but it would be to the companies benefit since they make all those sweet origination fees.

Thatguybil

  • Newbie
  • *
  • Posts: 39
    • View Profile
Re: Lending Club to Offer Super Prime Loans!
« Reply #6 on: November 19, 2014, 09:31:35 PM »
I know of a few folks who use lending club and prosper for bridge loans for their fix and flips for real estate or to actually buy in cheaper areas. Guessing they might qualify and use the higher cap for bigger projects.


Sent from my iPhone using Tapatalkz.  U

In my mind this would compete with HELOC.

The idea that an unsecured loan would have rates competitive with a car loan or heloc is crazy.

What happens when interest rates normalize?

BruiserB

  • Sr. Member
  • ****
  • Posts: 416
    • View Profile
Lending Club to Offer Super Prime Loans!
« Reply #7 on: November 19, 2014, 10:04:25 PM »
So are these loans being offered to us as investors?  Or are these being marketed as whole loans to institutions only?


Sent from my iPhone using Tapatalk

BBingo

  • Newbie
  • *
  • Posts: 41
    • View Profile
Lending Club to Offer Super Prime Loans!
« Reply #8 on: November 19, 2014, 11:37:50 PM »

I know of a few folks who use lending club and prosper for bridge loans for their fix and flips for real estate or to actually buy in cheaper areas. Guessing they might qualify and use the higher cap for bigger projects.


Sent from my iPhone using Tapatalkz.  U

In my mind this would compete with HELOC.

The idea that an unsecured loan would have rates competitive with a car loan or heloc is crazy.

What happens when interest rates normalize?

This would definitely open the opportunity for longer term use of these loans. The folks I know currently use them for a matter of months before an early payoff, as the interest rate isn't as good as a HELOC or similar loan. The advantage they see is a much quicker process to get the money they need depending on how your HELOC is structured.


Sent from my iPhone using Tapatalkz.  U

pplinvestor

  • Jr. Member
  • **
  • Posts: 91
    • View Profile
Re: Lending Club to Offer Super Prime Loans!
« Reply #9 on: November 20, 2014, 03:48:43 PM »
At 3.99%, it may make sense for us to make a spread... Borrow at 3.99% and lend out at 10%+
I would not do at 6.03%.  With fees and defaults, spread is too small for default risk taken.

Booleans

  • Jr. Member
  • **
  • Posts: 74
    • View Profile
    • Email
Re: Lending Club to Offer Super Prime Loans!
« Reply #10 on: November 21, 2014, 12:57:47 PM »
I assume that very few people would qualify as "Super Prime" borrowers. So much for my solar panels.

rawraw

  • Hero Member
  • *****
  • Posts: 2750
    • View Profile
Re: Lending Club to Offer Super Prime Loans!
« Reply #11 on: November 21, 2014, 03:04:17 PM »
I may qualify.  I'd be curious to see how they define Super Prime and I would be interested in borrowing the money and investing it ha ha

DanB

  • Hero Member
  • *****
  • Posts: 665
  • A lie told often enough becomes The Truth!
    • View Profile
Re: Lending Club to Offer Super Prime Loans!
« Reply #12 on: November 21, 2014, 04:20:05 PM »
I may qualify.  I'd be curious to see how they define Super Prime and I would be interested in borrowing the money and investing it ha ha

Yeah, borrow $50k & put it into the IPO.  Then flip that & pocket the profits. If the IPO goes down, call your bank & have them stop the monthly ACH payments. Then change your phone number & tell your co-workers to say you've disappeared if anyone calls for you. Either way, easy money right?  :)

rawraw

  • Hero Member
  • *****
  • Posts: 2750
    • View Profile
Re: Re: Lending Club to Offer Super Prime Loans!
« Reply #13 on: November 21, 2014, 04:39:11 PM »
I may qualify.  I'd be curious to see how they define Super Prime and I would be interested in borrowing the money and investing it ha ha

Yeah, borrow $50k & put it into the IPO.  Then flip that & pocket the profits. If the IPO goes down, call your bank & have them stop the monthly ACH payments. Then change your phone number & tell your co-workers to say you've disappeared if anyone calls for you. Either way, easy money right?  :)
Ha ha I wouldn't borrow that much and never invest it in a stock.  Might be a violation of regulation u as well

core

  • Hero Member
  • *****
  • Posts: 1784
  • Your loss is my gain
    • View Profile
Re: Lending Club to Offer Super Prime Loans!
« Reply #14 on: November 21, 2014, 05:41:15 PM »
This looks like an OK deal until you factor in the origination fee.  If the borrowers are so super-prime, then why go for this?  When you can sign up for a credit union online and pay like 1.9%.  Yes, you might have to claim it's for an auto loan to get that rate but they don't ask for documentation if you pick the right CU. 

I am still waiting to hear what their definition of super prime is.  Are we talking 800, or a more reasonable 760?  Too bad they don't allow small $1k loans for 7 years because it might still be worth the fees to have an installment loan on your report for that long for the extra FICO points.  Better (for AAoA purposes) than cycling a new one every 4 years.  But I think I'm out either way.  Lending Club doesn't allow loans to people in my important state for whatever reason.  I am guessing the blue sky exemption will not affect this?