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Investors - LC / tax reform
« on: November 14, 2017, 06:57:48 PM »

so, anyone thinking of forming a S corp to engage in the business of lending money?

Investors - LC / A Surprise Bump in Bad Card Loans
« on: September 20, 2017, 10:22:21 AM »
Credit card lenders are seeing some of the highest delinquency rates in years

Investors - LC / LendingClub's Response to Hurricane Irma
« on: September 18, 2017, 09:29:53 PM »
year's hurricane season has been a challenging time for many Americans. As if the devastation of Hurricane Harvey wasn't enough, Florida and the southeastern U.S. are now grappling with damage caused by Hurricane Irma. Our hearts are with all those impacted by the storms. We wanted to provide you with an estimate on how many LendingClub borrowers could be impacted by Irma and—similar to Harvey—let you know what we're doing to provide relief for them.
Estimated Scope of Impact
We estimate approximately 11,000 LendingClub borrowers are potentially affected by Irma (based on zip codes identified by FEMA as of Sep. 15), which amounts to about 1% of LendingClub's total borrower population. Of potentially affected borrowers, about 1,000 are currently delinquent as of Sep. 15.
This brings the total population affected by both Harvey and Irma to 53,000 people or 4% of LendingClub's borrower population. (Our updated analysis shows that 42,000 borrowers were impacted by Harvey.)
For the vast majority of investors who have diversified portfolios, we expect little to no impact to returns. The affected population is a small portion of our total borrower base of 1.3 million, and we're committed to keeping borrowers on track.
What We're Doing for Borrowers
LendingClub believes in doing the right thing for both borrowers and investors. Given the scope of the disaster, and similar to our approach with Hurricane Harvey, we've taken several steps in line with guidance from the FDIC to treat borrowers with respect, provide resources, and help them stay on track:
1.    Collections call adjustments. Starting on Sep. 11 and through Sep. 25, internal and agency collections teams stopped making calls to delinquent borrowers (approximately 1,000 borrowers) as the storm made its way through the area. We will resume calling delinquent borrowers who live outside of affected zip codes on Sep. 25. We will not resume calling borrowers who live in affected zip codes until Oct. 9. Likewise, we are suppressing direct mail and email collections communications to those same borrowers until Oct. 9.
2.    Late fees. We are not charging late fees for borrowers in affected zip codes starting on Sep. 15 through Oct. 30.
3.    Credit bureau reporting. For borrowers who live in affected zip codes and who become delinquent, we will append a note to our report to credit bureaus that they have been affected by a natural disaster.
4.    Hardship plans. We typically offer hardship plans (where borrowers are allowed to temporarily make interest-only payments to accommodate an unexpected life event) to borrowers when they meet certain eligibility criteria. In response to Harvey and Irma, we have relaxed our eligibility criteria for borrowers in affected zip codes. Hardship plans work to protect investor returns as borrowers whose loans may otherwise progress to charge-off status have the opportunity to make interim payments and some portion may revert to current status. Importantly, our teams will follow our standard process, where we offer progressively more relief to borrowers who ask for help, with hardship plans made available only after other options are exhausted.

Extending Relief for Borrowers Impacted by Hurricane Harvey
Much of the Houston area remains underwater and it appears that recovery efforts will take some time. To reflect this reality, and to ensure consistent treatment for borrowers affected by either Hurricane Harvey or Irma, we are making the following changes to the relief that we previously communicated for Hurricane Harvey.
•    Collections call adjustments. We will not resume calling borrowers who live in Harvey-affected zip codes until Oct. 2. We will also suppress direct mail and email collections communications to these same borrowers until Oct. 2. We will resume calling delinquent borrowers who live outside of affected zip codes in Texas and Louisiana on Sep. 18.
•    Late fees. We are not charging late fees for borrowers in affected zip codes through Oct. 16, extended from Sep. 30.
•    Hardship plans. We will be offering hardship plans until Oct. 16, extended from Sep. 30.

We've received overwhelmingly positive feedback from affected borrowers to date and have enrolled roughly 1,100 borrowers into hardship plans since Sep. 2. They appreciate our investors' understanding of the circumstances they couldn't control, and your willingness to help us do what's right in an incredibly challenging time.
We're committed to doing what's necessary to help our customers stay on track while protecting investor returns, and we're grateful for your support.
If you have any questions or concerns, feel free to reach out to us at 888-596-3159, Monday through Friday 7 a.m. through 5 p.m. PT, or

Out of 11,000 potentially affected borrowers, 1,000 borrowers are already delinquent (30+ days), before the hurricane! Does this seem really high?

Investors - LC / Does the Equifax hack impact LC fraud rate?
« on: September 08, 2017, 07:45:44 AM »
And does LC have to buy back the loan?

Investors - LC / Anyone selling Florida loans?
« on: September 04, 2017, 11:19:53 PM »
No, it's not too early.

Investors - LC / Selling Houston loans
« on: August 31, 2017, 12:41:29 AM »
Have started selling them aggressively since Monday and have sold more than 2/3. About 20% stuck in payment processing.

Will track them to see how fast they turn to IGP.

Zip codes =


Edited to add

Investors - LC / June seems to be a horrible month for me
« on: June 17, 2017, 01:55:35 PM »
Even worse than Jan/Feb. I've stopped re-investing my cashflows

Even though it has more data compared to buyers (e.g. full zip code just to give an example).

These are both structural and economic reasons.

1. Its revenue comes from its origination business (marketing). Underwriting is a cost center.
2. It has to show that its underwriting engine complies with Equal Credit (Fair Lending) regulations. Hence its models have to be audited and reviewed by regulators. People with fancy machine algorithms may pick up some variable that may lower expected default rates. But does this variable (e.g. first name, last name, zip code, occupation) have a disparate impact on protected classes? Also Lending Club needs to state the reasons a loan was declined in its Adverse Action reply (can you imagine the heat LC would get if they state: you were declined because you are a oil roughneck in Texas and unfortunately that pushes you over the edge).  Hence Lending Club's underwriting will never be as sophisticated as buyers who can pick which loans to purchase.
3. It's more concerned with assigning loans into broad subgrades, whereas buyers are more concerned about picking the top loans in each subgrade. Hence it just needs a model that is "good" enough, whereas buyers want to be able to squeeze out every bp of additional returns from all the data available.

Investors - LC / Anyone else seeing strong recovery so far in March?
« on: March 15, 2017, 08:18:53 PM »
hope it holds up! has to be the tax refunds!

Investors - LC / Spike in IGP this month?
« on: January 13, 2017, 05:55:51 PM »
I'm seeing a spike in IGP this month. Anyone else seeing the same thing?

Investors - LC / anyone else seeing a huge spike in charge-offs for Nov?
« on: December 01, 2016, 03:19:27 AM »
My Nov's charge-offs were 2.8x my Oct's charge-offs.

Investors - LC / Is the monthly statement front page misleading?
« on: November 03, 2016, 09:59:46 AM »
Under earnings summary it gives interest + late fees - charged off loans.

Does it include things like "service fees", "recovery fees", "collection fees"?

Troubled online lender LendingClub Corp. has met with at least three large hedge funds to discuss deals in which they would commit to buying billions in loans and get the right to own shares, people familiar with the talks said.

Investors - LC / Charge-offs ratio increasing this year?
« on: June 02, 2016, 11:42:18 AM »
was just looking through my monthly statements (charge off / interest)

Dec: -16.66%
Jan: -21.62%
Feb: -30.56%
Mar: -36.36%
Apr: -70.20%

Anyone else seeing anything similar?

Foliofn - LC / anyone noticed that the amount of good loans has dried up?
« on: November 16, 2015, 04:48:17 PM »
I've noticed that the amount of good quality loans selling at a reasonable price has dried up significantly over the last few months.

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