Messages

1

Peer Lending Server / Re: new user - need help on Custom filter

« on: December 12, 2016, 10:56:12 AM »

Hi,

Installed PLS 7. Everything seams to work fine and it is investing according to a simple filter I setup. Two questions to the community:
1. I didn't find in the manual any explanation about the custom filter (Artificial Intelligence and other). How do you set it up and what are the parameters. Is there  more information about it?
2. Is there any place where I can find good filters to start with? I understand that if someone find a good filter he wants to keep it for himself but maybe there are some that are shared?

Thanks for helping and for the amazing program,

Ofer

1. The AI criteria under custom is fairly out of date, but it is effectively a measure of the likelihood of default. It is on a 0-99 scale. See http://forum.lendacademy.com/index.php/topic,3497.0.html

2. Experiment on NSR Invest with there strategy builder. This is known as "back-testing"

Thanks,
Shawn

2

Investors - LC / Re: Worst Month Yet

« on: December 09, 2016, 11:33:20 AM »

Higher utilization does not lower your FICO?

I should be in the sweet spot for LC/P/GS/STI/DFS loan offers, both on the credit side and on the amount side - I expect to learn a lot from my January junkmail about who's doing what...

It sounds like you already are. Raising your utilization from 0 will have no effect. It's a myth that a utilization >0% raises your credit score.

It does lower FICO. I would imagine not materially through the very low utilization area (say less than 10%).

3

Investors - LC / Re: Effect of reason for non-payment on go-forward creditworthiness

« on: December 08, 2016, 07:36:36 PM »

Was the call part sarcastic or should I actually? I just can't imagine that many bank screwups or closed accounts.

I was serious.  Depending on who answers the call, you may get a BS answer or you may learn something helpful.  Clearly there are people at LC who know.  The person you get might be willing to ask for you. 

I have no info, but my speculation is that there is a class of borrower who opens a new bank account specifically to make payments to LC, allowing him to retain a feeling of control.  This would be the sort of person who runs their checking account bouncing at zero balance, asks people to not cash a check until Monday, etc. 

Continuing this speculation... If I were LC, I would look for a way to learn how long a bank account has been open, and refuse one that was created within the last few days.  Such information cannot be obtained thru the ACH system.  However, there are a growing set of intermediaries who allow creditors to obtain more detailed information from banks.  Some of the small business lenders are using them.  (For example, some small business lenders look into the business bank account to see if deposits add up to the business's claimed monthly revenue, etc.)  These intermediaries need the borrower enter his banking credentials to someone (the intermediary) which would be a put-off as many borrowers wouldn't want to do that for a small loan.  It also costs money.  These factors that will probably limit the use of this sort of thing in consumer lending. 

Of course a knowledgeable borrower will know that he can stop ACH transfers by just asking LC to stop pulling, but most don't know this.  Theoretically you can also tell the bank to stop allowing a certain party to stop pulling from your account, but I tried that once when an insurance company went nuts and kept drawing money after the policy ended, and I found the people in the bank ignorant, unhelpful, and uncooperative (what a surprise).

As fintech advances there will be more people coming up with information paths like this, and online lenders will eventually use them.  Of course banks could also advance ideas like the following: You know how some credit cards used to have a feature where they would give you a temporary card number that you could use with some questionable online merchant?   Amiex did for awhile 10 years ago.  BofA did it for awhile a few years ago.  Was a good idea, with cumbersome implementation.  Well, banks could do the same thing for checking accounts.  You could give every guy like LC one of these special account numbers, and then you could turn any one of them off at your convenience without bothering the nice busy bank people.  Although there are growing numbers of folks using repetitive ACH transfers these days (my insurance company, my newspaper subscriptions, ...) there are probably not enough yet to drive consumers to want such features.  Also ACH is ancient, and should be replaced sometimes in the coming few years.  Maybe the new system will have instant transfers, user dashboard control, etc.  More user control would be bad for LC of course, because such things would alter borrower psychology.  If they feel they have more convenient control over whether a monthly payment is paid or not, more of them will exercise that control.

If you want more than speculation, you'll have to ask LC.

I'll call tomorrow.

4

Investors - LC / Re: Effect of reason for non-payment on go-forward creditworthiness

« on: December 08, 2016, 05:52:19 PM »

You can call LC and ask.  If you do, let us know the answer.

I'm guessing that some people close the account, and that some of those people do that specifically to stop LC.  I'm guessing of course.  These would be people who intend to stop paying and don't know that you can just tell LC to stop withdrawing from the account.

There are many possibilities.  Bank screwups are always a possibility.

Was the call part sarcastic or should I actually? I just can't imagine that many bank screwups or closed accounts.

5

Investors - LC / Re: Effect of reason for non-payment on go-forward creditworthiness

« on: December 08, 2016, 04:46:54 PM »

"Account Issue" appears almost as much as "ISF." I would be curious if anyone could provide insight to what "account issue" means. I would assume borrowers would not be changing banks, etc. every other day.

6

Foliofn - LC / Re: Best Tool for FOLIO Selling

« on: December 07, 2016, 05:49:06 PM »

Pricing is tricky. It involves lots of things, e.g. your goal, market price, note quality, risk, timing. The best tool usually is a custom strategy according to your personal preference.

I get this, I am really looking for a better interface than FOLIO....

7

Interest Radar / Interest Radar Auto-Sell Working

« on: December 07, 2016, 12:39:03 PM »

Recently started using this, however it appears it is not listing my notes. Anyone else having problems? Does it list continuously or mass-list at certain times of the day?

8

Foliofn - LC / Re: Best Tool for FOLIO Selling

« on: December 07, 2016, 11:55:51 AM »

Interest Radar does what you are looking for.

Using this tool, however it doesn't appear to actually be placing sell orders.

9

Foliofn - LC / Re: Best Tool for FOLIO Selling

« on: December 06, 2016, 04:15:07 PM »

Interest Radar does what you are looking for.

Once again it is paid based. The FOLIO interface is just difficult to work in (no sorting etc). Any advice? The other solutions NSR Invest and Lending Robot does not support different pricing based on what LC portfolio the note is in.

10

Foliofn - LC / Re: Best Tool for FOLIO Selling

« on: December 06, 2016, 01:01:31 PM »

Are there any services that let you auto-sell based on lending club Portfolio? I want to reprice notes that I bought off of Folio based on which portfolio they are in. Neither Lending Robot nor NSR can do this. Am I stuck pricing them manually in the lousy FOLIO interface?

11

Foliofn - LC / Re: Best Tool for FOLIO Selling

« on: December 05, 2016, 04:17:47 PM »

Peercube is a good option if you're willing to pay for a monthly membership, as well as NSR. Both let you do the similar things in regards to backtesting, buying, and selling.

Looking for free options. Do not do enough volume to justify paid options. Using NSR Invest for the second.

12

Investors - LC / Effect of reason for non-payment on go-forward creditworthiness

« on: December 05, 2016, 04:04:56 PM »

Just a curiosity, has anyone looked at the effect on the reason in the collection logs the payment failed and if it is correlated with future payments? For example is "insufficient funds" better or worse than "account issue." Anyone have insight into what these even mean? I would assume "insufficient funds" means the account would be overdrawn. "Account issue" is more unclear, I am assuming it means the account was closed or something that the borrower had the transfer coming out of?

13

Foliofn - LC / Best Tool for FOLIO Selling

« on: December 05, 2016, 03:03:36 PM »

I wish to start trying to sell off some FOLIO notes. What is the best tool to use to do this or is it easiest just through the FOLIO interface? I saw you could set selling strategies in NSR. As well as any tools to help with pricing. Any advice is appreciated.

14

Investors - LC / Re: Lending Club Collection Actions

« on: December 02, 2016, 03:37:52 PM »

I am curious to expand this thread a bit, not trying to derail it. 
I am curious about how bankruptcies are handled.  My very first BK note was a straight roller for $10k after 1 payment and LC stated

Charged off. Bankruptcy: economically infeasible to recover

My question is, do you notice in your recoveries that you ever see much from BK?  Do you ever get more from the different kinds of BK?  Does certain BK yield more recoveries?  Just had a note go Chapter 13.  I do not expect anything from a BK note, so anything is just gravy.

Is there anywhere where the collection log/recovery information can be harvested into a data file? I would be willing to investigate this, I find it interesting. From what I have read the visibility into "post charge-off" behavior is very limited. It seems visibility into collections in general is. From what I have read, we cannot even get time-series data on loan progression through the statuses, we have to rely on LC's graph.

15

Investors - LC / Re: Lending Club Collection Actions

« on: December 02, 2016, 11:12:54 AM »

See thread and old article I mentioned here http://forum.lendacademy.com/index.php/topic,3656.msg32425.html#msg32425

I have read through this. I was curious if there was any more details available somewhere. So once the borrower since "cease and desist" the loan is effectively an automatic charge off, or can it still be worked by a 3rd party agency?