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Topics - SeanMCA

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Investors - LC / A C2 Note Paying 6%?
« on: August 19, 2015, 01:23:47 AM »
Should there be C2 Notes that only pay 6%? This is in my portfolio. It actually has a lower interest rate than all my A grade notes. ..

Investors - LC / Grace Period Track Record
« on: July 10, 2015, 12:09:22 AM »
Is there an easy way to sort all your notes to see which ones have entered into the Grace Period at some point? The amount of notes I have in the Grace Period category at any given moment is appalling. I rarely if ever see my A or B notes in there. It's always C and worse. As of a few weeks ago, I began only buying A and B notes and don't plan to change that any time soon.

I don't mind lending to people with damaged credit but I don't want to lend to people who are so broke that their bank account is empty just a few months in to a long term loan. Considering how many people have overdraft protection, a bounced ACH means that some of these borrowers are so broke that they've already capped out the maximum negative amount the bank will possibly let them hit.

The biggest irony is that in tech-based business lending, the single most important factor during analysis is the applicant's cash flow history. They use api tools to log into the borrower bank accounts and analyze the deposit history and daily ending average balance. If the person is broke, they don't get funded, no matter how good the credit and all the other "thousand data points" look.

In tech-based consumer lending, nobody seems to care whether or not the borrower is already broke. The lenders don't ask and nobody talks about it. Instead we rely on silly assumptions based on incomplete information. Why are we relying on outdated formulas when the technology to find out if a borrower has any money already exists? Why are we making presumptions about what someone could afford when we can just easily find out? This can easily be scaled. The first thing business lender Kabbage does when an applicant applies is log into their online banking through an API and download every transaction and balance for the last 90 days. And if they're not broke, then they ask what the borrower's name is. I'm not kidding. They log into your bank account before they even ask what your first and last name is. Because if you're broke, the rest doesn't matter...

Consumer lenders
Does the borrower have great credit? Yes
Is the borrower dead broke with -$10,000 in the bank and about to blow up and file bankruptcy? Meh, who cares

We laugh at these pseudo calculations in business lending. Lend to people with money, decline people who are broke.

Investors - LC / Lending Club contacted 3rd party?
« on: October 10, 2014, 01:34:02 PM »
What does this mean in the collection notes?

10/3/14 (Friday)   Lending Club contacted 3rd party and 3rd party was unable to pay at this time
9/2/14 (Tuesday)   PAYMENT Failed
9/1/14 (Monday)   Lending Club contacted borrower and borrower was unable to pay at this time

Does 3rd party mean like a guarantor or someone else who offered to make payments on the borrower's behalf?

Investors - LC / By "other" does he mean Methylamine purchase?
« on: August 04, 2014, 01:52:15 PM »
Lab Assistant
Alburquerque, NM
Reason for loan: other

I've found you Jesse Pinkman!

Investors - LC / Anti-money laundering?
« on: July 11, 2014, 01:45:35 PM »
For the past few months, I've been cycling my deposits to LendingClub between my account and my wife's account. When I went to make the usual switcharoo earlier this week, I was told my account can no longer do that:

Instead I get this message:
"To prevent money laundering activities and to protect the identity of our investors, Lending Club limits how often investors can change their linked bank account. You are not permitted to change your linked bank account at this time. For assistance, please contact Investor Services at"

So of course I emailed them to complain and they responded with a phone call to tell me that the new policy has no exceptions. Basically the bank account change restriction is time-based but they wouldn't specify how much time needs to pass until I can change it again. They hinted that it was likely a very long period of time.

The 1 bank account rule is kind of dumb considering people change banks all the time and my PayPal account is linked to several bank accounts and have been for years with no issues. I also wasn't trying to take money out, just put money in.

My IRA has 4 bank accounts linked to it for ACH deposits. It's a basic technological feature.

If the last bank account you used to deposit funds at LendingClub is closed or not the one you want to use going forward for deposits, then you probably have to mail in a check for them to process it instead. That's what they told me anyway, that I have to mail in a check. Ironically you can mail a check from any bank account you want, but ACH processing is limited to one account.

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