Author Topic: seeing lots of 13 month payoffs  (Read 2843 times)

JanS

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seeing lots of 13 month payoffs
« on: September 01, 2015, 02:31:44 AM »
I just noticed a group of 13 month payoffs. Most had multiple dates for the final payoff the second date was posted past the first 12 months.

I wonder if LC is taking a payoff at 12 months then stretching it a bit past 12 months. That would allow them to get their fee on the full loan rather than just the fee for the 12th month.

Statistically anything could happen, but it seems unlikly.



rawraw

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Re: seeing lots of 13 month payoffs
« Reply #1 on: September 01, 2015, 04:12:27 AM »
Or LC sends them a refi offer on the 13th month

yojoakak

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Re: seeing lots of 13 month payoffs
« Reply #2 on: September 01, 2015, 03:23:17 PM »
Pretty sneaky, sis'.

Quote
Investor Service Fees and Prepayments—Effective Q4 2014

As you may know, some Borrowers “prepay” all or a portion of their loans—they pay off their loan in full or in part earlier than the contractual due date.  Beginning in Q4 2014, we will limit the size of the service fee charged to an investor during the first 12 months after a Note is issued in order to protect investor returns in the event of a prepayment.  For those 12 months, an investor will never pay a service fee greater than 1% of the contractual monthly payment amount. For example, if the contractual monthly payment amount for a Note is $300 and a prepayment of $4,000 is received, the investor would only be charged a service fee of $3 (1% of $300).
 
This policy is designed to protect investor returns in the event that a borrower prepays their loan within the first year.

http://kb.lendingclub.com/siteupdates/articles/Site_Updates/Recent-and-Upcoming-Changes-on-the-Lending-Club-Platform-August-2014

AnilG

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Re: seeing lots of 13 month payoffs
« Reply #3 on: September 01, 2015, 04:20:38 PM »
Top 13 payment months when loans were fully paid early

For payment received after 2014-06-30,

Code: [Select]
Rank - Month
#1 - 8
#2 - 9
#3 - 11
#4 - 12
#5 - 13
#6 - 10
#7 - 7
#8 - 14
#9 - 6
#10 - 15
#11 - 16
#12 - 5
#13 - 4

For payments received before 2014-06-30,

Code: [Select]
Rank - Month
#1 - 1
#2 - 8
#3 - 9
#4 - 7
#5 - 6
#6 - 10
#7 - 5
#8 - 3
#9 - 4
#10 - 12
#11 - 11
#12 - 2
#13 - 13
« Last Edit: September 01, 2015, 04:23:51 PM by AnilG »
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Anil Gupta
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