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Topics - fliphusker

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Investors - LC / Winding down my account
« on: August 17, 2017, 05:11:24 PM »
First off I would like to thank so many people here as I start to wind down my account. Rob, Fred, Anil Dr. Everett, Rawraw and Nonattender. (Sorry I have no doubt I am forgetting others. Each of you guys has taught me and many others so much about LC. You guys did not have to take time out of your lives to help nubs like me who get into LC with a severe lack of knowledge, but you do and do not lose your marbles doing so.

Why am I winding down my account? Pretty easy.
I have been battling with LC since January about notes where the FICO scores are missing data. These notes are unable to be sold directly on FOLIO. These notes appear on NSR as 499 FICO and will not sell. Even though I have no real idea what their FICO is. LC is in no hurry to fix this. What else in the future will they not fix? Not going to find out.
I am actually fine with my returns, for the most part. Some of my risky FOLIO stuff did not pan out, but I am OK with that. I did not go into this with blinders on. I knew the risk I was taking with these loans. Just running into notes that are going bad when I was on the primary market when I first started.
The BKs are starting to mount. This part I know is just part of it, but it just shows the weakness in LCs underwriting.
I have seen a noticeable shift away from contacting late borrowers. I have a number of notes that are 16-30 days late where LC has only sent them an email. I do not understand why they will contact a guy twice a day and others not at all. I dislike the uniformity to this.
As we have seen that LC has started really catering to the institutions and away from the retail investors, I think the service they provide us has slipped as well.

Am I being a bit nit-picky? Ya probably.

So again, want to thank so many here and Lend Academy for their great tutorials and articles and for the forum. I will continue to lurk around here. Maybe in the future I will come back and start reinvesting in LC, just not now.


Foliofn - LC / This is why LC should just do their own FOLIO
« on: July 14, 2017, 10:13:17 AM »
We all know that the FOLIO site is a complete and utter joke, but it is also filled with other holes.
This is an utter joke that this note could even be listed. How is it even possible that it can be listed?

173% markup with a YTM of almost -1200?

Foliofn - LC / Where to buy and sell through FOLIO?
« on: May 09, 2017, 12:18:55 PM »
I am using NSR as completely love the number of filters that can be used for buying notes. As I am a small time investor, I can/do hand pick notes. But this process has been very frustrating lately with notes not being bought right away around 11 PM EST. Can take up to an hour to process. :( I do not use them to sell notes, it simply is not functional for my needs.
Buying notes on the FOLIo platform is a joke and it is not useable. (Do people actually buy there?)
PC is awesome, but I am just not a big enough investor for the fees associated with PeerCube. :(
I know some use Lending Robot, how are the filters there for hand picking notes?
Blueinvestment is not an option for FOLIO buying, correct?
Any other platforms available?

Foliofn - LC / For my FOLIO brethren
« on: March 25, 2017, 04:25:10 PM »
Last night I hopped on to drudge through loans on NSR, a tedious but necessary task and ran across some deep discounted notes. Not going to sugar coat them as their FICO scores have issues. I snagged about half a dozen of these "gems".
So figured would share as a few are still there. Before you say how crazy I am for jumping on ticking time bombs, sit back and look at the YTM for a bit and calc out what it would take to at least break even. I just never see such huge discounts on never late notes for any reason.

Investors - LC / This is new to me on collection log
« on: February 14, 2017, 06:00:06 PM »
I think I can write off this 16-30 day late note.  Maybe I can slip it by onto one of the auto buy guys on FOLIO. 
2/7/17 (Tuesday)    Payment Solutions specialist seeking to locate borrower using alternative means (skip trace)

Foliofn - LC / Odd FICO trend
« on: January 11, 2017, 01:16:25 PM »
This is not the first of its kind I have seen listed.  NSR tracking had the FICO at 499.  It was marked with a nice discount, assuming it had been automatically listed by someone's program.  When I stumble across these I just do not know what to think of them. 
Others run into these?  Curious you guys who run automated selling or buying if you have bought/sold notes with confusing trends.

Off Topic / Credit card utilization
« on: December 09, 2016, 01:20:05 PM »
I did not want to post this in the "Worst month yet" thread, as it was just getting totally off track. 

Below is my progression with my FICO over the past 22 months or so.  I bring it up due to the utilization discussion.  I also bring it up here due to people's nature to hate big FICO swings.  I do not buy notes on FOLIO with big FICO swings in recent months.  Personally, I would not touch such a note with my FICO swings.  I also do not worry about a 20 point swing either.  It has been a very long time since I paid a penny of interest on a CC and own my house flat out and have not missed a payment that shows on my credit file.  This is why it would be awesome to know what the root cause of FICO swings is due to.  I speculated on FICO swings sometime back, but it was only speculation. 

A Direct TV sold my "disputed debt" and it showed up on my report before I ever got a letter from the new company.  This is not new to me as it was a 6-year feud.  Once I sent a letter to the company about the "zombie debt" and contacted the 3 bureaus, it was removed.
B I took out 3 CC due to the awesome cash back rewards (Barclays, Citi, and Chase freedom).  I had 15 months no interest so I let balances grow on my Citi.  It hurt my FICO due to card utilization and overall utilization. 
C I took out a Chase Slate card as it had a balance transfer of 0% for 18-months.  So I stuffed it full and my FICO score plummeted even though my overall utilization did not change at all.  The first rise was 22 points and the funny thing is my $25 payment took my card utilization from 90% to 88%. 
D This quick drop was a large remodel on my house where I put a lot of materials on my CC from home improvement places.  Not only did it mess up 2 cards utilization but also my overall.  Most of the utilization issues were taken care of the next month when I paid one card off and brought my Citi to twice normal monthly utilization.  (was still not paying interest on it.)

General Lending Club Discussion / Bloomberg's article and Sandborn rebuttal.
« on: September 06, 2016, 07:59:15 PM »
I never read the article but only read Zentner from LR response on Seeking Alpha.

Re article entitled, “How Lending Club’s Biggest Fanboy Uncovered Shady Loans” (Aug. 18):

We were disappointed to read your article entitled “How Lending Club’s Biggest Fanboy Uncovered Shady Loans” in which you mischaracterize several attributes of the Lending Club platform.

Your reporter Max Chafkin opens his story by citing “critics” who claim Lending Club is a “credit crisis waiting to happen.” He cites neither evidence nor critics beyond a single disgruntled investor. Far from precipitating a crisis, Lending Club has helped consumers to save $1.4 billion in lower interest payments and enabled investors to earn an average of 5 percent to 9 percent, which compares very favorably with alternatives.

As to the claim that by not identifying borrowers who have two loans, investors are “leaving money on the table,” this reveals a misunderstanding of how our platform works. Loans are priced according to the borrower’s credit profile at the time the loan is taken out, so a borrower may have two loans with different rates. As an example, if a borrower uses their loan to pay off existing credit card debt, their FICO score would likely improve. If they take out a second loan -- we allow maximum of two concurrent loans with a maximum exposure of $50,000 -- they may reasonably get a lower rate. Our approach ensures interest rates are fair to both parties.

We acknowledge the criticism stemming from recent events and view this as an opportunity to make Lending Club a stronger company. It’s unfortunate that your article focused on the unsubstantiated opinions of a single investor, rehashing issues we have already disclosed, when in fact Lending Club has enabled significant financial benefits for millions of people.

Scott Sanborn
Chief Executive Officer of Lending Club

Foliofn - LC / I am missing something with YTM
« on: August 04, 2016, 07:02:39 PM »
So I bought a note that I normally would not buy on FOLIO today, I just found some spare change under my couch cushion to get it. I do not hand calc YTM on FOLIO mainly as I have not run into anything that I was going to buy that looked off.
I am well aware of its issues

Asking price-$7.36
YTM listed-12.44%
Premium- -3.11%

But I was a bit concerned that I was missing something with this note. So found online calc.
The note has 10 payments left on it so I used .833 for years to maturity and it came out with 12.23% YTM. What am I missing?

Investors - LC / New LC email
« on: July 29, 2016, 11:36:03 AM »
For whatever reason, some of you are not getting LC emails so figured would toss this up.  More communication and transparency at least.  I know we would have found out in about a weeks time anyway, just saying.

For example, at the end of Q2 we had roughly $40 million of loans on our balance sheet or approximately 2% of expected quarterly loan volume.

Pretty happy it is only $40M.  Dislike the "2% expected", instead of the real number though.  I am going to assume they did not have anything before Q2?  No mention if they are planning on keeping the loans.

Lending Club and the Marketplace Model

I appreciate and welcome all of our investors' feedback and suggestions. I wanted to circle back with the answer to a question that's been asked a lot lately.
Some of our investors have observed the funding environment and asked: "Are you going to become a balance sheet lender, just like a regular bank? Has Lending Club's business model changed?"
Let me be very clear: Lending Club is committed to the marketplace model and we do not plan to become a balance sheet or "hybrid" lender. Our mission of connecting borrowers and investors has not changed.
That said, there may be situations where the temporary use of our balance sheet makes sense. One example would be to enable test programs. Another situation would be to bridge imbalances on the platform. In plain English, this means that if there is a timing mismatch resulting in more borrower demand for loans than available investor capital, we'll consider investing in and holding the loans with the plan to sell them to investors in short order. Our borrowers expect a great experience, and bridging may occasionally help us deliver it while keeping the marketplace running smoothly.
We have facilitated over $18 billion in loans since our inception with extremely limited use of our balance sheet. For example, at the end of Q2 we had roughly $40 million of loans on our balance sheet or approximately 2% of expected quarterly loan volume.
It is important to note that there are several tools to maintain balance on the platform.
One tool is borrower marketing, as we can dial our efforts up or down. Another is interest rates, which impact both borrower demand and investor supply. In total, the platform has a number of levers at its disposal to adjust to changing market conditions. It is this ability to adapt that is unique to the marketplace model and fundamental to the way the Lending Club platform operates.
What's most important for investors is this: Lending Club's limited use of its balance sheet does not impact your Notes.
Thank you for the trust you continue to put in us. We value the relationships we've built with you over the years, and welcome your questions and feedback.
Scott Sanborn
Lending Club CEO and President

Foliofn - LC / Too good to pass up, or am I crazy?
« on: July 09, 2016, 10:28:40 AM »
I try to avoid notes that have even been IGP, even long ago.  I was just on FOLIO and just had to jump all over this note.  Am I missing something with it?
10 days late once and that was 13 months ago.  Besides that, has not even been late a couple of days.  Not sure how I feel about notes being IGP, even over a year ago. 
FICO a bit of a downturn, but I felt was not that big of a deal, as 20 point drops not that uncommon. 
Principle+interest -- $16.01
Ask price -- $14.41
YTM -- 27.03%
Discount -- 9.99%

Not sure why NSR did not come and advertise their event, so guess I will.
Starts at 12:30 CST, or 40 minutes for those challenged by time zones.  :P

Investors - LC / Seeking Alpha article
« on: June 20, 2016, 12:54:58 PM »
A month of so I went on a rant about bad journalism, I really do not remember where the article was from.  Anyway, I ran across the article below today, and it has me ticked off again as I feel Seeking Alpha is a pretty reputable site.  (Correct me if I am wrong.)

So many poor assumptions in the article. 
the company is now hemorrhaging cash to fund the loans that it originates. At a rate of $18.9 million per week, we are talking about $983 million per year.
  LC is going to be keep the pace on funding of the notes is asinine at best to assume. 
"Furthermore, this cash drain will likely increase as volume of originations rises, since the company would have to spend more of its own cash to plug the funding deficiency."
  Does anyone know how much LC is on the hook for and having to sell or buy themselves?  Someone wrote about LC having to guarantee those direct marketers to fund.  That has been cut by 75%, so common sense dictates that LC will not have to fund much there.
"if we assume that the cash drain of $983 million per year will be the norm in the near-term"
.  Do people actually believe anything in the business world falls under the category of "norm"?
"On Deck Capital (NYSE:ONDK)) would be busy gobbling up market share in the meantime." 
why would he even mention ONDK?  They only deal with small business loans.  Does he think they are going to step outside of their business model and get into other areas?
I'm not implying that the cash used to fund the loans will be lost, as the assets (i.e. the loans) will still be on the balance sheet.
  Believe LC has already said they are/will be selling these notes.  Correct me if I am wrong. 

I know that he is writing his biased side of it, just feel that he is doing so ignoring facts and with misleading sensationalist statements.  The bait click title is something you would see for the "top 10 boob jobs in Hollywood", you see on every site. 

Investors - LC / Is there such a thing as "best notes?"
« on: June 12, 2016, 07:03:39 PM »
I have seen phrases such as, "LC is only selling the best notes to institutions or on the whole market while retailers get the leftovers." Or, "Prime notes are not available for the retailers."
I want to get a bit of a discussion going on here about these types of quotes if you believe them to be factual.  If you believe this to be factual, do you care as you generally have enough to invest in?

The other thing that I see bandied about around here are people talking about institutions getting preferred treatment.  I have never read that institutions are getting breaks with their investments.  If someone has a viable article on this, would like to read it.  The second part of this, would you care if they did get a break, with lets say the 1% service charge? 

General Lending Club Discussion / Am I screwed with this note?
« on: June 07, 2016, 09:19:57 PM »
I know this happens, probably happens way more then it should, but this is just ridiculous.  Straight roller made one payment then declared bankruptcy.  My first note to even go IGP. 
Loan id: 73955953
I am assuming I can just write this off now with no hopes of getting anything back?
As the note is just $10k, will LC file an objection?  Is this a clear cut case of fraud then?

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