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Topics - neals384

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General P2P Lending Discussion / EstatePlanning for P2P Accounts
« on: March 06, 2020, 11:26:27 AM »
How have P2P investors handled their P2P accounts in their estate plans?  We are currently updating ours and would appreciate ideas!

In the simplest scenario, suppose a joint account at LC or Prosper, but only one spouse is interested in peer-to-peer investing, and the other is perhaps not really computer savvy at all.  When the P2P investor spouse (that's me, of course) passes away, the remaining spouse inherits the account, and assuming she doesn't really want to be a P2P investor, she has a few issues:
     Canceling auto invest, API or 3rd party investments in new loans
     Transferring cash elsewhere as it accumulates from interest and payoffs.
     Dealing with P2P taxes.
Unless she can sell notes via folio (LC only), there will be a time lag of 3 to 5 years when the account can't be closed. 
(If the account was an IRA, then the tax problem is solved but $ transfers are taxable (or to other IRAs).

Now consider a tougher scenario - unmarried person as the P2P investor, with, say 5 beneficiaries.  First, you have the same issues as with a spouse - does each beneficiary really want to be a P2P investor?  Second, do Prosper/LC have a process for splitting a P2P account? 

For an after tax account, Prosper does not even have a way to name a beneficiary, so it's probably best to use a trust account there.  Your general estate plan may call for distribution of all trust/estate assets to the beneficiaries asap, but is that even possible, or does the trust take 3-5 years to wind down (as successor trustee fees accumulate)?

For IRA accounts, you can name multiple beneficiaries at the IRA custodian, but what happens when the custodian tells LC/Prosper to split the account five ways?

Maybe the best estate plan is to start winding down my P2P accounts 3-5 years before I die?  Thanks in advance some help on this as you can see I pretty confused!

Neal
     
   



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Investors - P / Prosper 1099 - "Collectibles"
« on: March 06, 2020, 10:57:38 AM »
Reviewed my 1099 from Prosper and was curious to see recovery and debt sale transactions listed as "Collectibles", box 3.  The amounts are small, but categorizing them as box 3 makes them subject to ordinary income tax.  Anyone else have the same issue?


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Investors - LC / Are LC Grades Completely Random?
« on: August 22, 2016, 08:38:43 PM »
Hi.  Have been on prosper for 5 years, and now that LC is allowed in Oregon, I'm getting my feet wet.

I'm really struggling to understand LC's underwriting.  Here's an example using two listings from last month:

                Listing 1       Listing 2
Amount   $35K       $24K
Period   60               36
         
HO?           Rent               Mortgage
Yrs emp.    7                   2
Salary   $9K              $9K
State   TX                   MD
DTI          24.86%        22.99%
      
FICO     725                  685
Open Lns      9                   8
Rev Bal   $25K        $2.6K
Inquiries      1                   1
Dqs (2 yr)      0                   3

There are more data points of course, but those are the highlights.  Which listing do you like better?  Would you expect a dramatic difference in grades/interest rates between the two?

By now, you may have guessed that listing 1 is a G1 at 28.18% interest, while listing 2 is an A3 at 7.59%.  Does this make any sense at all?  Or does LC simply use a magic 8 ball to assign grades?

Links:
https://www.lendingclub.com/browse/loanDetail.action?loan_id=84730228   
https://www.lendingclub.com/browse/loanDetail.action?loan_id=84626679


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Investors - P / Prosper Beta View
« on: July 03, 2016, 09:22:17 AM »
What do people think about the new Beta View?

I've been trying to find a way to get to saved filters from the beta view. As far as I can tell, it can't be done. You can click on "Browse Loans" and then "Advanced / Saved Filters but no saved filters are shown there.  My conspiracy detector says maybe this Prosper's way of getting rid of saved filters and those annoying retail investors that like them.

Another dumb thing:  the Account Overview screen has a little bar chart of your notes by grade, but if you have an IRA account, instead of the bar chart you get a bright orange box that says "Add some cash to start investing".  Never mind that you have mucho uninvested cash and hundreds of notes in your account already, the coder apparently thinks if you don't have a linked bank account you have no notes to chart.  Dude, just search for notes and if none are found and cash is $0, then display the orange box!

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Investors - LC / How's My Timing?
« on: June 02, 2016, 08:09:22 PM »
Live in Oregon so have waiting years for our state to be added to the Investment side of LC (and made do with Prosper for 4+ years). Finally, as of Jan 2016, we are joining the 21st century.  So I opened an LC IRA for dear wife, initiated a rollover, and her account became active May 16.  Just in time for some really bad stuff happening at LC!

I do have one question - when browsing listings on LC, is there an easy way to ask for just the current feeding, or just new since last logon, etc?  On Prosper this is easy since each loan link changes color once viewed but on LC They don't.

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Investors - P / Strangest Repeat Borrower Ever?
« on: July 27, 2015, 12:06:50 PM »
Here's a listing for an Auto Loan from a repeat borrower.  Borrower has five previous loans for a total of $25,000; no payments (late or on time) on any of them, and now wants $20,000 for a car.  No, it's not a data mistake - all five previous loans are dated July, 2015!
https://www.prosper.com/invest/listing.aspx?listingID=3413664

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Investors - P / Loan Descriptions Missing
« on: September 12, 2013, 01:24:09 AM »
♫ Where have loan descriptions gone, since last Monday?
    Where have loan descriptions gone, we need them now.
    Where have loan descriptions gone, gone from Prosper, every one.
    When they bring them back, when will they bring them back?  ♫

Apologies to Dylan.  Listings posted to Prosper starting Monday, 9/9/13 do not show a description field.

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Investors - P / New Listings Appear at Crazy Times
« on: September 06, 2013, 12:13:08 PM »
Maybe it's  a software glitch, or maybe it's by design.  Either way, I'm not getting up at 4:43 AM to check Prosper for new listings.  New listings were added last night at 8:01 PM, Then this morning at 4:43 and 5:47.

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Investors - P / Prosper's Identity Theft Guarantee
« on: June 20, 2013, 09:45:35 AM »
As a lender, I wondered if Prosper really honors their promise to refund lenders if the borrower is an identity thief.  After all, how would we know?

Well, I received the following email recently:

"During our stringent risk management process, we recently found that a loan corresponding to one of your Prosper Notes involved the theft of the named borrower's identity. In accordance with Prosper's 100% Identity Theft Guarantee, Prosper has credited your account for the outstanding principal balance of that Note.*
To see the credit, simply log in and view your Account Transaction History, where it will be noted as an "Indemnification Credit". Thank you for investing with Prosper."

Of course, the credit from Prosper was only for the principle balance, not including the 8 months in lost interest.

Neal


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