Lend Academy Network Forum

Lending Club Discussion => Investors - LC => Topic started by: Kombinator on November 01, 2016, 01:22:54 PM

Title: End of Month bulk Charge Off pattern: Why?
Post by: Kombinator on November 01, 2016, 01:22:54 PM
It seems that few months ago LC has implemented a charge off policy where the loans are mostly charged off at the end of the month, as opposed to normal as they come pattern.  Has anyone else noticed this, and any thoughts on why they are doing it? Also, it seems that the bulk charge off catches loans that are not in default status but ranges even into 16-30 days late...pretty frustrating in estimating returns and CF...
Title: End of Month bulk Charge Off pattern: Why?
Post by: rawraw on November 01, 2016, 02:04:03 PM
Not sure why, but it's not uncommon in banks. I've been told it's easier on the back office, doing it all at once

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Title: End of Month bulk Charge Off pattern: Why?
Post by: BruiserB on November 01, 2016, 03:21:46 PM
They do twice per month.  Once around the 15th and once on the last business day.  Around 7:30pm Central time last night I could refresh my main screen and watch my account value drop every few minutes as the defaulted loans were written off one by one.


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Title: Re: End of Month bulk Charge Off pattern: Why?
Post by: yojoakak on November 01, 2016, 03:49:12 PM
Also, it seems that the bulk charge off catches loans that are not in default status but ranges even into 16-30 days late...pretty frustrating in estimating returns and CF...

Last time I checked, no one really knows how LendingClub calculates how many days "late" a loan is. But the good news is if the borrower continues to make payments, they'll show up as Recoveries.

http://www.lendacademy.com/forum/index.php?topic=231

http://www.lendacademy.com/forum/index.php?topic=1797

http://www.lendacademy.com/forum/index.php?topic=1888

http://www.lendacademy.com/forum/index.php?topic=2731