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Topics - Reginald

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1
Investors - LC / How did this note ever recieve an A1 grade?
« on: November 10, 2018, 12:28:11 PM »
Found this in my recent chargeoff's.

13 payments were made with 23 to go.
Loan Summary
Note Issuance Date   4/20/17
Note Amount   $25
Loan Amount   $12,000
Rate   A1 : 5.32%
Term   36  months
Status   Charged Off
Recent Credit Score   560-564
Credit Score Change ?
Down
Received Payments

 Check the origial listing:

https://www.lendingclub.com/account/loanDetail.action?loan_id=105101138

  • Is this the best LC can do in underwriting thir loans?

     
  • Can you spot at least 1 red flag?

Member_112971850's Profile (all information not verified unless noted with an "*")
Home Ownership   MORTGAGE
Job Title   lieutenant
Length of Employment   10+ years
Gross Income   $12,500 / month
Debt-to-Income (DTI)   7.57%
Location   110xx
Member_112971850's Credit History (as reported by credit bureau on 4/7/17)
Credit Score Range:   720-724
Earliest Credit Line   04/2001
Open Credit Lines   7
Total Credit Lines   21
Revolving Credit Balance   $12,609.00
Revolving Line Utilization   45.50%

Inquiries in the Last 6 Months   0
Accounts Now Delinquent   0
Delinquent Amount   $0.00
Delinquencies (Last 2 yrs)   0
Months Since Last Delinquency   40

Public Records On File   0
Months Since Last Record   n/a
Months Since Last Major Derogatory   n/a
Collections Excluding Medical   0

2
Investors - LC / Are Lending Club's Statistics Pages Broken?
« on: June 11, 2018, 03:39:36 PM »
Take a look at this set of charts.
https://www.lendingclub.com/info/demand-and-credit-profile.action

In particular check out the chart called "NET ANNUALIZED RETURN BY VINTAGE" 



Q: What's wrong with this picture?:
A:  No new data since Q1 2017  -- RED FLAG note, this is as of 6/11/2018.

Why do you suppose that is?  Is it just an inconvenient truth that 2017 and 2018 are worse vintages than 2015 and 2016?  Lending Club have been telling me they hit a bad patch of loans in 2015. If that's the case things are going from bad to worse.

I guess I dont have to tell anyone on this forum how things are going for investors at LC. All I can say is that 2yr CD's at the local credit union are beating the pants off of Lending Club.




3
Notes on IRS Filing of Very Larger numbers Lending Club Records with Turbo Tax

Turbo Tax Error: "Your transmission did not go through. Please try again later"


By Reginald D. Sluggowski III
Tax Expert
04/11/2018
Summary: 
Do NOT import LendingClub data directly with Turbo Tax (any version) or you will be in a world of pain: Your processing will slow to a crawl, the totals on forms 8949 and Schedule D . Instead Open the two 1099 forms (for each account) in the FORMS view rather than in the Step-by-Step Dialoge. They are: 1099-OID (interest found on page 4 of the tax packet) and 1099-B (bartered transactions ie carryover losses and recoveries). The 1099-B has 2 sections, Short Term , and Long Term. (box A and D respectively) the relevant data is the the sub-totals for each category of transaction. Do not report individual transactions list the sub-totals as a single transaction use the oldest transaction date of each group as the date of purchase and the newest transaction date of each group as the date of sale. Let Turbo Tax total the two.

PROBLEM:

Problem was due to LENDING CLUB transaction details in the Turbo Tax Form being just too large.  Surprisingly, Turbo Tax did not detect this as a problem, which shows you they dont really test their software in real life situations. 

SOLUTION: WHAT WORKED  FOR ME:

1. Make backup copy of the Turbo Tax file (found in ~/Documents/TurboTax/
2. Open the Return
3. Open Forms View (not step-by-step)
4. Find the 1099-B  (not the OID) for each Lending Club account
5. Delete the forms (use the menu at the bottom of the form when viewing it)
6. Add a new 1099-B.  Instead of listing each transaction, just use the sub-totals of the short term and long term (on your lendingclub pdf file - let TurboTax do the totals. Rememeber that each 1099-B worksheet has two parts - the top part you should use the pulldown for box-A,  the bottom half should use the pulldown menu item for box D (long term losses) .

This way the totals on form 8949 actually get calculated correctly! 

PREVENTING  THE PROBLEM:   (lesson learned- best practice for NEXT YEAR)

Do NOT import LendingClub data directly with Turbo Tax (any version) or you will be in a world of pain: Your processing will slow to a crawl, the totals on forms 8949 and Schedule D . Instead Open the two 1099 forms (for each account). They are: 1099-OID (interest found on page 4 of the tax packet) and 1099-B (bartered transactions i.e., carryover losses and recoveries). The 1099-B has 2 sections, Short Term , and Long Term. (box A and D respectively).


Re the 1099-B  - note there are two sections to the Worksheet One for Box A (short term) losses and One for Box D (long term losses) you need not fill out every field. Use LendingClub's SUB-TOTALS within the consolidated 1099-B as entries. Do NOT use every single transaction. Especially if its more than 1000 transactions. Use the oldest and newest transaction date for the buy and sell date respectively.



4
Investors - LC / LC Article on Seeking Alpha
« on: October 19, 2017, 10:51:46 PM »
I ran across an interesting article about Lending Club the other day which I believe is relevant to this forum. The author examines the incentives built in to Lending Clubs business model, and how their own rush to grow loan originations could be threatened by capital flight due to increasing risk and lower returns as investors start to move capital elsewhere.

"LendingClub: Capital Supply A Major Risk"
https://seekingalpha.com/article/4113649-lendingclub-capital-supply-major-risk

What do you think?

5
Introductions / New member LC veteran
« on: October 02, 2017, 10:07:43 PM »
Hi, I'm an investor at Lending Club, trying to figure it out and to pass on anything I know or learned to others.

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