Lend Academy Network Forum

Lending Club Discussion => Foliofn - LC => Topic started by: jrl on March 20, 2020, 08:06:16 PM

Title: How do you price risk on Folio when all the credit scores are over 2 months old?
Post by: jrl on March 20, 2020, 08:06:16 PM
The credit scores aren't updating. I've previously brought this issue up with LC and they told me they now update bi-monthly.

Visual representation of the issue: https://i.imgur.com/rQsuz8H.png (https://i.imgur.com/rQsuz8H.png) The charts are two different random notes, one from my account, and one listed on folio.

Well, it's been two months and one week since the last update, and they still haven't updated.

So I emailed LC about this on Tuesday, and they responded "The credit scores should update in the next two days." on Wednesday. I have asked again this evening and still haven't received a response.

I think they're not taking this issue seriously because nobody else is noticing, because none of the automated systems would pick it up. The only values shown on the SecondayMarketAllNotes file are "CreditScoreTrend" and "FICO End Range" but if you look at the notes_ext or traded_notes_ext files there's a value labeled last_credit_pull_d which is the date the last credit score was pulled/updated.

When you think about it, every single note on folio currently shows a "credit score trend" that ends two months ago, which previously updated in the middle of every month. Any note could literally have went from a prime credit score to an extremely high risk score last month, or even the month before, and would still be listed with a flat or up trend. Obviously this problem gets exponentially worse the longer it persists.

I understand many here are trying to liquidate their accounts, and I would LOVE to buy your notes (that meet my criteria), but until the scores update I'm reluctant to buy a single note!

I'm currently sitting here with 15% of my account in cash because of this, hoping more people will raise this issue. It's frustrating.
Title: Re: How do you price risk on Folio when all the credit scores are over 2 months old?
Post by: jheizer on March 23, 2020, 03:46:31 PM
:( Sucks to hear  Over the last few days I purged a lot of notes that *should* have been pretty good ones.  Crappy that they are limiting the already tiny number of buyers driving my ability to get money back down.  I was extremely strict on my buying so the first 200 or so sold very fast and at easy break even prices.  Slowly been pricing the rest down from there every few hours.  Down to 35 notes now.  Hopefully the get on it soon.
Title: Re: How do you price risk on Folio when all the credit scores are over 2 months old?
Post by: Fred93 on March 23, 2020, 04:03:51 PM
Keep turning down those prices.  I see my computer is buying a lot of notes on folio today.
Title: Re: How do you price risk on Folio when all the credit scores are over 2 months old?
Post by: jheizer on March 23, 2020, 04:40:09 PM
... *turns prices back up*

haha.  If they were good ones with less than a year left to pay good chance it was me.  I basically broke even last year between interest and defaults.  Haven't bought any new in a long time.  Just kinda ready to be done and have one less account to check or do taxes for.  This just got me to finally do it.
Title: Re: How do you price risk on Folio when all the credit scores are over 2 months old?
Post by: Fred93 on March 24, 2020, 02:05:52 PM
Pleasure doing business with you.

I did my own taxes forever, but 10 years ago I handed over to a good accountant and never looked back.  I've had three audits which she handled entirely by herself.  One (Calif state) just ended a couple of weeks ago with no adjustments.

There is still considerable work gathering all the documentation.  I have way too many accounts.  I've been slowly reducing.  For example, in P2P, I have LC, Prosper, Bondora, FundingCircle.  I long ago put Bondora and FundingCircle into runoff.  Oh, and then I was an investor in DealStruck, which went broke.  My losses in DS exceed my earnings in the other P2P.

LC is effectively in runoff.  My software keeps trying to invest, but I can't get enough loans with their current allocation to retail, so my account shrinks vs time.
Title: Re: How do you price risk on Folio when all the credit scores are over 2 months old?
Post by: mark78 on March 24, 2020, 11:57:49 PM
Keep turning down those prices.  I see my computer is buying a lot of notes on folio today.

Probably me. I sold 2000 notes in the past 24 hours to raise cash to buy depressed stocks. Some of the notes would have sold at a 1-8% markup a few weeks ago, but browsing current notes it became apparent that's no longer true, so I dumped them at face value. I probably could have done a little better, but I got my cash.

It's interesting that while the stock market has dropped 30%, notes for low-grade consumer debt are only down a few percent. I don't know if that's rational, or because any new risk hasn't been factored in yet, or because of the upcoming government funding.
Title: Re: How do you price risk on Folio when all the credit scores are over 2 months old?
Post by: jheizer on March 26, 2020, 09:41:36 AM
Wow, got me beat by far.  Down to 20 notes here.  The few that failed out from processing payments last week that didn't then resell over the weekend.
Title: Re: How do you price risk on Folio when all the credit scores are over 2 months old?
Post by: kaw on March 29, 2020, 11:37:26 AM
The credit scores aren't updating.

Confirmed. I will also email them and ask. Furthermore, I'll tell them that the secondary market seems to be down.
Title: Re: How do you price risk on Folio when all the credit scores are over 2 months old?
Post by: jrl on April 01, 2020, 02:33:06 PM
The credit scores aren't updating.

Confirmed. I will also email them and ask. Furthermore, I'll tell them that the secondary market seems to be down.

Fixed! Finally!

They added 2 data points to (most of) the charts, but both say 3/20, since they differ on some notes and last_credit_pull_d is 3/30/20, I'm just going to assume it's mid-month and 3/30/20. I'm going to have to keep a lookout to see if it's now end-of-month instead of mid-month going forward.

Now I get to spend the rest of the week buying notes! lol
Title: Re: How do you price risk on Folio when all the credit scores are over 2 months old?
Post by: kaw on April 01, 2020, 07:38:50 PM
New scores are in. There was a predictable drop, but all things considered, not that bad.