Author Topic: Technical Glitch for New Loans  (Read 5629 times)

LendingAlpha.com

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Technical Glitch for New Loans
« on: June 30, 2015, 08:48:36 PM »
I had the chance to talk to someone over the phone form Lending Club to address the low new loans volume issue. Lending Club has admitted that they're dealing with a technical issue that is preventing loans from being posted to the fractional market.
  • The issue may have been caused by the high number of new loan volume that has been often observed during quarter-end.
  • There's also an imbalance between supply and demand. In our case, they are referring to a relative lack of demand (investors). Without enough investors investing and too many available loans, not many are reaching 100% to get fully funded. This is potentially a different issue.
  • They're not offloading new loans to the whole loan market. The issue impacts everyone -- whole/fractional/website/third-party.
  • They have not stopped processing new loan applications. However, loans are stuck in "limbo" as the glitch impacts posting the notes in the marketplace.
  • Their engineering team is communicating internally that the problem should be resolved by tomorrow (July 1, 2015), and the supply and demand imbalance should be back to normal by early July.
Unofficially, it's also worth noting that there's a transition for API requests that will begin requiring additional API Key information when submitting an order. After June 30, 2015, those using the API must provide two sets of API Keys: one for the account and one for the third-party platform operator. This is to have better visibility over who is placing orders on behalf of accounts. It's not impossible that Lending Club may be using the API for their Automated Investing feature, and their implementation for the API key change may have also cause something to break, which could also account for the sudden loss in investor demand in the fractional markets.

For now, it seems that Lending Club is aware of what broke and have engineers who are fixing the issue. The anomaly is likely a short-term issue and there could be a backlog of loans flooding the market once the flood gates open again after the technical issue gets resolved. Moreover, expect a large number of available loans in the fractional market, but that should resolve itself within the next few weeks as loans expire and/or investors come back into the platform (Automated Investing fix if that is also broken).
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lascott

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Re: Technical Glitch for New Loans
« Reply #1 on: June 30, 2015, 11:13:39 PM »
Thanks for sharing all that.  It is really quite bizarre to me and highly coincidental.   

The additional API key is pretty interesting.  I don't recall anyone talking about that but "certainly" all 3rd party products would have been notified "well" in advance.
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Fred93

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Re: Technical Glitch for New Loans
« Reply #2 on: July 01, 2015, 12:23:19 AM »
Unofficially, it's also worth noting that there's a transition for API requests that will begin requiring additional API Key information when submitting an order. After June 30, 2015, those using the API must provide two sets of API Keys: one for the account and one for the third-party platform operator.

Astonishing.

I have repeatedly complained that they should not make API changes without at least 1 month warning, so that people can have time to change their software.  THEY JUST REFUSE TO UNDERSTAND THIS.  They take an extremely undisciplined approach to API changes. 

avid investor

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Re: Technical Glitch for New Loans
« Reply #3 on: July 01, 2015, 08:25:18 AM »
Interesting to note that now that it is July 1, there is nothing new online in their API authentication docs at: https://www.lendingclub.com/developers/authentication.action

jheizer

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Re: Technical Glitch for New Loans
« Reply #4 on: July 01, 2015, 10:09:43 AM »
Thanks for the details.  At least someone gets some info. 

And WOW at the API changes.  I'll assume that since my code is working today it is more this feature goes live but it not yet required.  Odds it stays as V1 still?  lol  They need a API mailing list or something.
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Fred93

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Re: Technical Glitch for New Loans
« Reply #5 on: July 01, 2015, 01:07:42 PM »
I exchanged email with my rep at LC, who says this change doesn't affect me, because I'm not a "3rd party".

DLIFVOIP

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Re: Technical Glitch for New Loans
« Reply #6 on: July 01, 2015, 02:15:47 PM »
I had the chance to talk to someone over the phone form Lending Club to address the low new loans volume issue. Lending Club has admitted that they're dealing with a technical issue that is preventing loans from being posted to the fractional market.
  • The issue may have been caused by the high number of new loan volume that has been often observed during quarter-end.
  • There's also an imbalance between supply and demand. In our case, they are referring to a relative lack of demand (investors). Without enough investors investing and too many available loans, not many are reaching 100% to get fully funded. This is potentially a different issue.
  • They're not offloading new loans to the whole loan market. The issue impacts everyone -- whole/fractional/website/third-party.
  • They have not stopped processing new loan applications. However, loans are stuck in "limbo" as the glitch impacts posting the notes in the marketplace.
  • Their engineering team is communicating internally that the problem should be resolved by tomorrow (July 1, 2015), and the supply and demand imbalance should be back to normal by early July.
Unofficially, it's also worth noting that there's a transition for API requests that will begin requiring additional API Key information when submitting an order. After June 30, 2015, those using the API must provide two sets of API Keys: one for the account and one for the third-party platform operator. This is to have better visibility over who is placing orders on behalf of accounts. It's not impossible that Lending Club may be using the API for their Automated Investing feature, and their implementation for the API key change may have also cause something to break, which could also account for the sudden loss in investor demand in the fractional markets.

For now, it seems that Lending Club is aware of what broke and have engineers who are fixing the issue. The anomaly is likely a short-term issue and there could be a backlog of loans flooding the market once the flood gates open again after the technical issue gets resolved. Moreover, expect a large number of available loans in the fractional market, but that should resolve itself within the next few weeks as loans expire and/or investors come back into the platform (Automated Investing fix if that is also broken).

Thanks for the info. 

I love it when LC says they have a supply/demand issue.  I bet if they resolved the issues with the states that are currently prohibiting new investors, it might solve a portion of the "supply/demand" problem they are having.  I personally know of about 5 people (about $250k) that would love to open an account and start investing, but they live in in the wrong state and are not interested in only the FOLIOfn.

Half Right

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Re: Technical Glitch for New Loans
« Reply #7 on: July 02, 2015, 01:10:07 PM »
I exchanged email with my rep at LC, who says this change doesn't affect me, because I'm not a "3rd party".

I had someone write a small program to auto invest. I presume that means the change will not affect me also.

Rob L

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Re: Technical Glitch for New Loans
« Reply #8 on: July 02, 2015, 10:41:09 PM »
I exchanged email with my rep at LC, who says this change doesn't affect me, because I'm not a "3rd party".
I find this both confusing and troubling. There's nothing in the API interface that differentiates individuals and 3rd parties.
What is going on here? Did I miss the memo?

Fred93

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Re: Technical Glitch for New Loans
« Reply #9 on: July 02, 2015, 11:07:44 PM »
I exchanged email with my rep at LC, who says this change doesn't affect me, because I'm not a "3rd party".
I find this both confusing and troubling. There's nothing in the API interface that differentiates individuals and 3rd parties.
What is going on here? Did I miss the memo?

Agree.  Just tellin' ya' what he relayed to me.  When technical info is relayed thru a nontechnical person, you have to assume the explanation may not be exactly what was intended.  I tried to clarify, and this is what I got.  That's all we know.   

You didn't miss the memo.  They don't write memos! 
« Last Edit: July 02, 2015, 11:16:36 PM by Fred93 »

rawraw

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Re: Technical Glitch for New Loans
« Reply #10 on: July 03, 2015, 10:49:54 AM »
I exchanged email with my rep at LC, who says this change doesn't affect me, because I'm not a "3rd party".

I had someone write a small program to auto invest. I presume that means the change will not affect me also.
Wishful thinking lol

Fred

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Re: Technical Glitch for New Loans
« Reply #11 on: July 07, 2015, 04:14:19 AM »
After June 30, 2015, those using the API must provide two sets of API Keys: one for the account and one for the third-party platform operator.

Blessed is the man that walketh not in the counsel of LC API, nor standeth in the way of API keys, nor sitteth in the seat of LC third-party operators.

LendingAlpha.com

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Re: Technical Glitch for New Loans
« Reply #12 on: July 13, 2015, 04:21:55 AM »
I exchanged email with my rep at LC, who says this change doesn't affect me, because I'm not a "3rd party".
I find this both confusing and troubling. There's nothing in the API interface that differentiates individuals and 3rd parties.
What is going on here? Did I miss the memo?

When you applied for API access, it asked you whether or not you are using the key for personal / third party use. That's how they're tracking who needs to submit the additional information. From the looks of it, they're not enforcing it at the moment.
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Fully Automate Your LendingClub Portfolio - Simple and Effective for Everyone.
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