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Messages - mrwhizzard

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1
Investors - LC / Re: Available Cash -$1.49
« on: March 08, 2019, 11:49:21 AM »
I guess that's an explanation, but it doesn't seem like they should be crediting money to me that they haven't actually received. Weird.

This seems like the change to the payment process that started on Feb 12. From the LC help page:

Quote
Effective February 12, 2019, when borrowers make payments, LendingClub applies the applicable portion to investor accounts within one business day, versus the former transfer time of up to 5 business days. By reducing the payment transfer period, investors:
...
May see “reverse payment” transactions, reflecting failed payments from borrowers.
...
Therefore, in rare cases, you may see a payment deposited and later reversed. Payments that fail after they’re deposited into investor accounts will appear as negative line items on investor statements.
...
May experience negative ending cash balances in certain circumstances, which will be reflected on their statements.

2
Investing - General (not P2P) / Net Investment Income Tax
« on: February 14, 2019, 04:21:02 PM »
I'm not sure if this is really the right forum to ask this question, but I figured some of you might also have to fill out Form 8960 (Net Investment Income Tax). My questions are regarding line 9B. The form instructions say that this line should "Include state, local, and foreign income taxes you paid for the tax year that are attributable to net investment income" and that you can use "any reasonable method" to determine that amount.

(1) It seems that most of the tax prep software uses something like "(schedule A line 5A) * (net investment income) / (adjusted gross income)". This doesn't seem reasonable to me because Schedule A line 5A is taxes paid during the tax year, rather than taxes paid for the tax year. For example, 5A could include a large end-of-year payment for 2017 that I paid when filing my taxes in 2018. Or, it could include a very large overpayment of 2018 taxes that will be mostly refunded in 2019.

(2) It is unclear to me from the instructions whether the $10k limit on state and local taxes which applies to itemized deductions also affects from 8960. The 8960 instructions say that line 9B can include "State, local, and foreign income taxes if properly deducted on your return when calculating your U.S. regular income tax" (emphasis mine). This would, in my opinion, tend to limit you to the $10k, since nothing over that amount is deducted on your return.

Any opinions that might shed some light here?

Here's a link to the instructions:
https://www.irs.gov/pub/irs-pdf/i8960.pdf

3
Foliofn - LC / Re: Looking to buy Historic Folio data
« on: August 20, 2018, 01:47:44 PM »
Quote
Alaska, New Mexico, North Carolina, Pennsylvania: Residents are unable to purchase LendingClub Notes on the primary market. However, they are permitted to buy and sell LendingClub Notes on the Folio Investing* Note Trading Platform.

So the guys who can trade on the secondary market but not the primary market are just three states.

I count four?

4
Investors - LC / Re: New Platform
« on: July 02, 2018, 04:55:14 PM »
I did complain to LC about it, and got a more or less canned response. Basically, they know that there are issues with the new interface, but they didn't care enough to fix them before rolling it out... Yay.

Quote
The recent changes we made to our Holdings page is part of a continuous effort to improve our investor experience. We are taking your assessment and using it to make the appropriate adjustments to design the most functional website for our clients.

Unfortunately, this update has caused an issue with assigning Notes to portfolios. Our engineering team is aware of this issue and are planning to update the page mid to late July. I appreciate your patience and apologize for the inconvenience this has caused.

We've made many updates in the past year and a lot of these changes and improvements could not have been successful without your feedback. We hope to continue on our path to improving investor experience and as you can see, there is bound to be some trial and error.

Here's a quick summary of our recent updates as well as some changes we hope to be able to bring to our investors in the near future:

• Multi-factor Authentication
• F&G update
• 5th Generation Credit Model

I hope you continue on this journey with us as we work together to make this a better experience overall.

Thanks again for your help!

5
Investors - LC / Re: New Platform
« on: June 28, 2018, 04:00:36 PM »
Yeah, that's really annoying. And even though it shows a portfolio filter at the top, it's greyed out for me.

6
Investors - LC / Re: Loan Availability by Initial Listing Status, 17Q3
« on: February 12, 2018, 03:44:21 PM »
I do know that I'm only interested in loans initially listed fractional and there doesn't seem to be enough of them for me to consider an A grade only strategy to take advantage of LC's IRA bonus offer.

Are we assuming (or has LC said) that the loans initially offered as whole are a randomly selected subset? Because if not, and the "best" loans are sent to the whole market, then even the rejects from that might be better than the loans initially offered fractional, right?

7
Investors - LC / Re: tax question: "worthless security"?
« on: February 09, 2018, 06:03:10 PM »
You may be able to go to the form view and manually change the dates if you desire.
Well, at least that's not a problem. TaxAct isn't making me change anything, it's just telling me that I should do it differently.

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That said, I just enter the total sale price and cost basis and say the dates are various instead of listing each and every note.  Otherwise, my tax filing would be as big as a book.
I wrote a script to extract all the info out of the pdf, and convert it into a csv file I could upload directly. Since it wasn't any extra work for me, I guess I don't really care how big of a book I'm making. :)

8
Investors - P / Re: Prosper 1099 Tax forms for tax year 2017
« on: February 09, 2018, 05:59:54 PM »
However, for the 2017 tax year, they have consolidated the 1099-Bs into just one form, and it's not clear whether one has to calculate long-term and short-term losses manually now.  They do give a subtotal for boxes 1D, proceeds, but I do not see a consolidated figure for boxes 1E, cost or other basis, for short-term and long-term calculations. My 1099-B form is over 300 pages, and I hope I don't have to calculate cost basis manually...   :( . Am I missing something obvious? I hope so.

On mine, the summary at the top gives totals for 1d and 1e, but not split out by short-term vs long-term. Each individual transaction identifies itself as short-term vs long-term, however.

Even if they had included short-term and long-term totals separately, don't you have to report each transaction individually on Form 8949? I thought that was a requirement whenever the basis was not reported to the IRS.

9
Investors - LC / tax question: "worthless security"?
« on: February 09, 2018, 10:58:34 AM »
I'm using TaxAct this year, and after importing all of my LC and Prosper 1099-B transactions, TaxAct is flagging a warning regarding each of the transactions with a $0 "proceeds" (which is the case for all the charge-off's that have had no recoveries so far):

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You have not entered a sales proceeds amount for LendingClub Note 123396681. Please verify that this is correct. If there are no sales proceeds then one of the first two check boxes below should be checked. If your sales proceeds when entered round to $0, you can ignore this alert.

The two check boxes referred to are:

Quote
  • Check here if this property is an option you purchased that has expired.
  • Check here if this property is a security that became worthless during the tax year. The IRS considers worthless securities as if they were sold on the last day of the tax year, therefore if this is a worthless security you will need to enter 12/31/2017 above for the date sold.

Now, arguably the second check box could apply here. But it seems like a bad idea to change the reported sale date, since not only will it no longer match the 1099-B, but it will in some cases change the transaction term from short to long. My instinct is to ignore this warning, and use the data from the 1099-B as reported, but I wanted to check if anyone else has a differing opinion here.

10
Investors - LC / Collection log starts before note issued?
« on: January 24, 2018, 03:18:03 PM »
This is a new one for me. I have an In Grace Period note that has a collection log entry from a week before the note was issued. I'm assuming it must be a typo on the date, but really? This seems like something even the most basic QA would catch...



11
Investors - LC / Re: What amount does investors obtain after chagre-off?
« on: October 25, 2017, 12:19:30 PM »
So can you state, what exactly the amout is, the investor receives for this specific loan with ID 57167?
Is it  PCO_RECOVERY - PCO_COLLECTION_FEE =3354.94 - 603.88?
Or is it only PCO_RECOVERY=3354.94 what the investor receives?

I can't help you with that specific loan, but here are the details from a couple of loans that I have had recoveries on. Maybe you can cross reference it with your data.

Loan 59372712 ($25 note): recovered $3.72, recovery fee -$0.67, net recovery $3.05
Loan 54100241 ($25 note): recovered $5.42, recovery fee -$0.98, net recovery $4.44
Loan 55947731 ($25 note): recovered $3.61, recovery fee -$0.65, net recovery $2.96

Hope that helps. I suspect the answer to your question is "PCO_RECOVERY - PCO_COLLECTION_FEE".

12
So,  are your hardship loans coming current or just failing at a later date?    Do you like the option?

Looking at my "Download All - Extended" csv file, I can only find "active" (3) and "broken" (1) hardship status listed. I'm almost certain I had some other loans go into hardship plans, though, so I'm wondering now whether they clear out those fields once the loan goes back to regular status? I'll have to watch more carefully to see.

13
Investors - LC / Re: LC Email: "The Next Generation Credit Model"
« on: September 12, 2017, 11:52:42 AM »
it does seem that LC wins while investors lose if there's grade inflation.

Well, in the short term anyway. I can't imagine that's a very sustainable practice...

14
Investors - LC / LC Email: "The Next Generation Credit Model"
« on: September 11, 2017, 02:19:15 PM »
I just got the below email about an updated credit model. The one comment here that concerns me slightly is the shift to grades A and B loans. I'm a little wary of a credit model enhancement that makes moves more people up than down...

Quote
We have launched the most advanced and predictive credit model ever used on the LendingClub platform. It's the latest in LendingClub's long history of innovation on behalf of borrowers and investors.
 
The new model leverages machine learning and 10 years of LendingClub data to better assess and price credit risk. LendingClub has helped 1.5+ million borrowers since 2007; each borrower provides unique insight that we can use in our next decision.
 
What investors need to know about the new credit model:
 
•   It's 24% better at differentiating the likelihood of a borrower charging off than the fourth-generation model, and is more predictive than a borrower's FICO score alone.
 
•   It's built on a wealth of proprietary data, incorporates more data points for each borrower, uses best-in-class modeling techniques, and uses dozens of new custom attributes that are predictive in assessing risk.
 
•   We expect loan volume to shift toward higher quality grades (grades A and B) because some borrowers will qualify for lower interest rates under the new model, and other higher-risk borrowers, who may have received an offer previously, will be screened out.
 
•   We continue to see lower delinquency rates across grades and terms in the existing loan portfolio than in the second and third quarters of 2016.
 
We see this credit model as the latest innovation in our continuous enhancement cycle, and one that helps us continue to provide investors with solid risk-adjusted returns. See here for more on what makes the model unique.
 
As always, please reach out to us with any questions or concerns at (888) 596-3159. Monday-Friday from 7 a.m. through 5 p.m. PT, or investing@lendingclub.com.
 
Best regards,
The LendingClub Team

15
Investors - LC / Re: Best way to measure true return?
« on: August 22, 2017, 11:34:57 AM »
Does anyone know if the adjusted account value can be extracted off of the statements, or alternatively extracted from the website for an arbitrary prior date after the fact?

It looks to me like the statement contains enough information to calculate the adjusted account value. For each loan with a "late" status ("In Grace Period", "Late (16-30 days)", "Late (31-120 days)", or "Default"), multiply the outstanding principal amount by adjustment percentage (currently LC uses 31%, 61%, 82%, and 89% respectively). Then add all those up and subtract from your end-of-month account value.

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