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Messages - bobeubanks

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Off Topic / Re: Cash Parking
« on: December 17, 2018, 12:30:23 PM »
Oh my. Getting stuff like this right should be job #1. 

General P2P Lending Discussion / Re: FICO score inflation
« on: October 25, 2018, 01:13:27 AM »
Is 15 points a big change?

Can you replot it so the Y-axis starts at 0?

 FICO doesn't start at zero though but rather at 300. But the WSJ should be ashamed of graphing it in a way that is misleading as you note.

For example, I just don't buy the idea that "many" employers check credit history. 

That one sounded fishy to me too. I found this.

General Prosper Discussion / Re: Requesting a quick survey on P2P lending
« on: October 11, 2018, 12:39:09 AM »
I would think a university professor would have better grammar and know to not crosspost like you did. Also, a 1 in 5 chance for a $50 prize just screams scam to me.

I've not been warned and I never even actually invested any money with them after opening an account in 2015. (Just checked, I can still login.) You would think they'd close never active accounts before not recently active accounts.

Introductions / Re: Lack of judgement
« on: August 03, 2018, 02:23:28 AM »
My first default on LC skipped town to another country.  I check on him periodically via Linkedin.

I'm curious as to how you know his name to follow him on Linkedin.

That's a start, but its not enough.  On the bank side there are all the strange bank accounting rules and on the personal side there are very large intangible assets (ie me!), brick-and-mortar assets (my home), etc. 

Go back and reread my post. I addressed both of those things.

A bank's ROA is something that has no equivalent for an individual investor, so there's nothing in your personal investment numbers that you can compare with this number.  I spent some time thinking about how I might compute such a number, and gave up.

It isn't that hard. Just pretend that you've incorporated the portion of your assets involved in your investments and figure out the net income and total assets for that pretend company. You could even subtract 1% of assets from net income to pay your self as your financial adviser to make things more realistic. 2% if you think you are worth it. ;)

Certainly apportioning the asset value of things like your computer(s) you use both for personal and investment is a little difficult and if you further muddle your personal life with investments by doing something like renting out a room in your home, it gets even more complicated, but nothing that can't be ball-parked.

A bank doesn't need lenders so half of the LC software would be useless.

They don't need lenders but they might want to expand into an arena where people are willing to give them virtually unsecured money from which they can take 1% off the top at close to zero risk.

Investors - LC / Re: Take on debt and put it in Lending Club?
« on: April 26, 2018, 11:15:22 PM »
Ask people who have liquidated their accounts or stopped buying loans about what their final return were. What they put in and what they got out in the end.

While I agree borrowing to invest in notes is a bad idea*, I don't see the post-reinvesting situation as necessarily dire as you do. While I'm not completely closed out of my Prosper account (I have a handful of 5 year notes still with a few months left to go. About $40 in principal.) I've been happy with my results.  I made initial purchases in August and September of 2013 and reinvested until April 2014. Been withdrawing ever since. I've withdrawn 1.19x what I invested. Prosper claims my ANR is 9.74%. A very simple pessimistic annual return calculation would be 19%/5 years = 3.8%.

For what it is worth, I choose a conservative approach with the bulk of my notes being B and C grade and I had very few defaults - charge offs/initial investment = 2.8%.

*I actually think any investing in Prosper or LC is ill advised at this time.

Stocks are taxed based on the trade dates. I assume notes are the same.

Wow, I'm doing something wrong. You're getting over 9% return on A and B loans. I'm trying to get that and I'm funding HR and E loans. Props to you, my good sir.

When I began investing return projections over the grades after projecting for defaults were pretty flat. I didn't see any benefit from taking extra risk to gain what was projected to be just a very slight higher return.

I'm surprised there isn't more widespread outrage across the internet on this.  Maybe it will take a few days, as I ignored the email they sent me two days ago and only in logging in randomly today did I see the note.

Mine only dropped about 1/2 of a %. It was 10.?? and now 9.73%. I might be special: most of my notes are A and B and I've not made new investments for 3 years.

Pseudo-random tangent:  Why do a lot of banks and CU's (CU's are notorous for this) do hard pulls (which affect one's score) when one is opening an account?  Why the hell does opening a deposit account of any type affect anyone's risk profile / credit report / score?  Stupid...

I had a credit union do a hard pull for opening just a basic savings account. It is a small and decidedly low tech credit union.

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