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Messages - Beekaycee

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Interest Radar / Re: Auto invest stopped functioning
« on: March 09, 2014, 03:22:28 PM »
I got the same error message on a couple of note releases in both of my accounts yesterday.
Normal operations have resumed in both accounts today.

Investors - LC / Re: What's This "Best Note" Selection Business Anyway?
« on: February 04, 2014, 09:12:52 PM »
The best indication that their credit model is working accurately is a sameness between captured returns across the grades. b-g should basically give you the same return if you buy all the notes offered. This is the fully diversified naive portfolio that shows how well they are pricing risk to give an after default economic return for the platform. I think they've been doing a pretty darn good job. B-G are basically giving you about the same.

With tax filing season top of mind it struck me that for those individuals with a taxable Lending Club account equal returns across the grades may give substantially unequal results after taxes.

We are fully taxed on the interest, but limited to $3000 capital losses per year from your defaults (unless you have other capital gains to offset). Any losses you can't deduct roll forward, but meanwhile the defaults keep coming in, too.

Bottom line, the high risk grades throw off big interest yields, but also have large defaults that you may not get to deduct anytime soon.

Interest Radar / Re: Will you renew your IR subscription?
« on: January 19, 2014, 03:15:07 PM »
I find the analysis and automated buy/sell features to be very good value. Will renew.

Investors - LC / Re: Folio and IRAs
« on: December 20, 2013, 09:17:08 AM »
We don't even know for sure if this is about taxes and legality.  It could be that Folio wants to cut off IRA accounts because of the additional accounting and paper work burden.

This rings true to me, GS

Interest Radar / Re: Auto Sell feature on Int Rad
« on: December 03, 2013, 05:30:09 PM »
Try over in the Interest Radar sub-Category on P2P sites/tools. I believe you'll find some discussions on auto-sell and sell formulas.

As for me, I am simple:  (Principal + accrued interest) x percent

Interest Radar / Re: Auto Sell feature on Int Rad
« on: December 03, 2013, 03:30:55 PM »
The functionality is there. From the Interest Radar landing page click Reports. Then select Auto-Sell in the Administration section. Then click on the portfolio you want to enable sell rules for. Everything you are asking for is available in a matrix format.

You will be presented with a matrix where you define your auto-sell triggers by loans status and FICO trend. Define your selling price formulas and then insert them in the desired matrix category. Make sure to set the rule to "online"

Good investing

Interest Radar / Re: Rev - sent you an email
« on: December 03, 2013, 06:11:07 AM »
This is interesting:

P2P solutions developer. Interest Radar listed on the site.

Came upon this because I received a reply to an inquiry with from:

Kenneth Baker.

Investors - LC / Re: Unverified Borrower Profile Data
« on: November 29, 2013, 11:24:39 AM »
"I'm just not sure I want to even use this unverified data in my filter."

Yes, I arrived at the same conclusion for newly issuing LC loans. 

I don't use Folio too often, but over there it's different. Verified Income is a valid data field you can sort on. Absent a glitch, we should see full accuracy there on issued loans up for resale.

Investors - LC / Re: Unverified Borrower Profile Data
« on: November 29, 2013, 10:41:00 AM »
So it appears that none of the loans that show up on the Primary market go through much vetting ahead of time.  The borrower applies for the loan online and LC does an automated pull of credit bureau info and adds that and then it shows up as available for investing?  Is that the way it works?  What if the borrower says something like 10+ years for employment and really its less than 1 year, but all other information is correct.  As an investor, if I have already "ordered" this loan, do I have the chance to go back and say I no longer want this loan?  What I am thinking is that it may not be worthwhile to even include any unverified borrower information in my filters.  The borrower credit history looks to be much more reliable data to base a filter on.

LC describes their process on page 57 in the Prospectus dated April 30, 2013 (available by link at the bottom of the LC landing page):

It is correct that LC lists the loan before verification of income if it passes other LC hurdles. They select a large amount (68% in 2012) to verify as noted below. Those borrowers who fail to satisfy the verification request have their loans pulled. I believe this after-the-listing verification process contributes to the high percent of loans that fail to issue.

Quote from prospectus below

Verification of Borrower Information
Approximately 68% of the applicants during the 12-months ended December 31, 2012 had their employment or income verified by us by requiring the borrower to submit paystubs, IRS Forms W-2 or other tax records between the initial posting of a loan request and the issuance of a Member Loan.
We perform targeted income verification primarily in the following situations:
• if we believe there may be uncertainty about the borrower member’s employment or future income;
• if we detect conflicting or unusual information in the loan request;
• if the loan amount is high;
• if the borrower member is highly leveraged;
• if we suspect the borrower member may have obligations not included in the borrower member’s pre-loan or post-loan debt level, such as wage garnishment collection accounts; or
• if we suspect a fraudulent loan request.
We also conduct random testing. From time to time, we also randomly select listings to verify information for the purpose of
testing our policies and for statistical analysis.
If the borrower member fails to provide satisfactory information in response to an income or employment verification inquiry, we may remove the borrower Member’s Loan listing or request additional information from the borrower member.

Interest Radar / Re: Today's Auto-Invest Performance
« on: November 24, 2013, 07:47:28 PM »
My auto invest is functioning today

Interest Radar / Re: Rev...another busted link!
« on: November 16, 2013, 11:10:45 AM »
Add my vote for a full-time Rev, and the price point today is an extraordinary value.

Investors - LC / Re: Someones in the NY Times today...
« on: August 11, 2013, 01:07:37 PM »
Of the loans Lending Club has made in 2013, it did not verify income about half of the time, according to data available on its Web site.

Mr. Laplanche said the company had models that dictated when it scrutinizes income and that the company was verifying income on more loans than it did in the past.

Related: Saw this article analyzing the LC yields and default rates by grade for verified and unverified loan. There is a BIG difference in default rates and yields in the D-G grades, according to the study.


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