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Messages - storm

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16
Investors - LC / Re: Worst Month Yet
« on: July 06, 2018, 11:33:16 AM »
Another good LC month. Starting to look more like 5% to 6% reality rather than a statistical fluctuation.
My delinquency rate has been down the past 6 months. Another positive indicator.

Really?  I'm investing in mostly B's and C's, and I'm hovering around a 4% annualized return.  Charge-offs have been steady since February (about .5%/month of my total portfolio).

17
Investors - LC / Re: New Platform
« on: July 03, 2018, 12:56:43 PM »
@kib If anyone important at LC is reading this thread, I think you made your point brilliantly.   ;D

18
Investors - LC / Higher Interest Rates
« on: June 29, 2018, 05:45:45 PM »
Just got a new e-mail from LC.  This is a bit of good news for those of us who are still investing:

Quote
Higher interest rates for investors.
Hi Storm,
As you know, our goal at LendingClub is to provide value to both sides of our marketplace—access to attractive rates for borrowers, and an opportunity for competitive returns for investors.
To maintain marketplace balance, we adapt and recalibrate often based on a changing macro environment, competitive insights, supply and demand dynamics, credit performance, investor feedback and more.
In response to the changing interest rate environment and feedback from investors like you, interest rates are increasing for LendingClub grades A-E effective today, June 29, 2018, by a weighted average of approximately 50 basis points for each grade. Please see the new interest rates below and click here for additional details by subgrade.
Interest rates on the LendingClub platform are influenced by a variety of factors, including the supply and demand for credit, the competitive landscape, investor feedback, and the macroeconomic environment.
The decision to raise rates is in line with the overall interest rate environment shifting from historic lows. The Federal Reserve has increased rates 1.50% over the past two years, including a recent increase of 25 basis points on June 13, 2018. As of its June increase, the Federal Funds rate target is 1.75% to 2%—its highest level in a decade. Two additional interest rate hikes are expected this year.
As another sign of the changing interest rate ecosystem, interest rates on 10-Year Treasury Notes have increased 35% over the past 12 months. In response to and in anticipation of higher rates, our investors are looking for higher interest rates from all fixed income assets.
We will continue to monitor the interest rate environment to determine whether future increases are necessary. You can also see here for more on the factors that influence interest rates on the LendingClub platform overall.
These interest rate changes will not impact the interest rates of the LendingClub Notes you already own. However, you may want to consider these rate changes when making future investment decisions. You can easily update your investment criteria within your account.
As always, please feel free to reach out to us at investing@lendingclub.com with any questions.
Best regards,
The LendingClub Team


19
Investors - LC / Re: New Platform
« on: June 28, 2018, 03:08:25 PM »
They also removed the download notes feature.  And if you click on a daily activity you used to be able to copy and paste that day's payment information into Excel.  Now it's not possible without writing some kind of macro.  Annoying and an ugly interface.

I asked LC about the download feature.  They said only a few users were using it so they got rid of it.

After logging in, you can still use this direct link.  Not sure for how long.

https://www.lendingclub.com/account/notesRawDataExtended.action

20
The business model didn't work.

They were just scripts.  I would think the business would pretty much run itself.  Bluevestment's pricing was reasonable which is why I signed up.  The other services need to rethink their pricing because with the lower returns, they would be taking out a serious chunk of my profits.  Just more of an incentive to brush up on my programming skills and create my own auto-invest script.

21
BlueVestment / Re: Bluevestment Down Again
« on: May 17, 2018, 07:17:24 PM »
Bump?

Website has been down for a long time.  No auto-invests in several months.  I think it is safe to say Bluevestment is dead.  Hope the owner doesn't go on a spending spree with my credit card info.

22
I was genuinely curious why everyone formed the viewpoint they did.  At a time when alternative facts and fake news are all too common, it never hurts to think critically about the information we are given and where it originates before accepting it. 

I was expecting somebody would inform me that someone at the FTC has ties to a competitor or the banking industry and wants to see LC go down in flames.  A unanimous vote by the two FTC commissioners on opposite ends of the political spectrum hardly strikes me as political.

Reading between the lines of the FTC case and press releases, I believe the charges were brought on because of the lack of urgency by LC to address the complaints.  The case has screen shots showing how the origination fee was buried during the application process as of a few years ago.  It is hard to argue one way or another about the other charges without more specifics.  I was taught at a young age the customer is always right, and if they are going to the trouble of filing multiple FTC complaints, then things need to change.  Instead of refuting each charge, LC should have issued a blanket apology and said its working to improve its loan application process and servicing.  That is Public Relations 101.

23
If you scroll up, Peter says, "I should preface these statements by saying that I have had a long, close relationship with LendingClub. I have been an investor in the loans since 2009, an equity investor since their IPO in 2014 and LendingClub has been a sponsor of every LendIt conference since 2013. So, I am hardly impartial in this matter."

As of last week when the charges were announced, there were one Democrat and one Republican/chairperson running the FTC.  The Democrat resigned Saturday.  On Tuesday, four new commissioners were sworn in to fill the vacancies.  The current chair was nominated by the President and is waiting to be approved for a judgeship on the Federal Claims Court before giving up her current position which expires in September.

I will ask again...What proof do you have that the FTC charges are political?  What makes you think the charges are baseless?

sources:  https://www.politico.com/story/2018/04/26/ftc-commissioners-senate-approval-1108262
https://www.politico.com/story/2018/05/03/trump-federal-trade-commission-ohlhausen-511570

24
What does this issue have to do with them going bankrupt? They have a billion dollars in assets, a huge line of credit they can tap into and tens of millions of dollars in free cash flow. I really doubt institutional investors are worried about lending club going bankrupt in the span of 3 years(life of the loan) because of political statement by FTC which worse case scenario would result in a fine (which it won't because they have no case)
Also, in the event of bankruptcy, they also have contracts with third party servicing platforms to service the loans.

I'm just pointing out that LC may have to spend some money to reverse the trajectory of their falling stock price.

What proof do you have that the FTC charges are political?  What makes you think the charges are false?  I can't remember another time when Washington has been so pro-business.  Seems odd they would single out LC.

25
Why would the lenders care about this?

Didn't slow me down. Yet I've heard rather bright people confuse investing in LC's stock with investing in LC loans. I somewhat doubt seasonality, as this is a more serious swing than I've seen before. More likely one of the other factors you note.

Edward

Unlike other investments, LC's success or failure is intertwined with the loans.  Our bankruptcy laws are untested when it comes to this type of investment, and LC never has implemented a BRV for marketplace investors.  If a major brokerage went under, you still own the stock, and your cash is insured.  If LC went under, we know the loans would still be serviced, but would investors get their money back?  If a more traditional financial institution bought out LC, I imagine they will shut down the marketplace and focus on institutional investors and securitization since supporting many small investors is costly and not the primary source of revenue.

26
As someone who's filed more than a few FTC complaints, it takes a lot of complaints to get the FTC to act.  It makes me think there is some basis to these charges.  The CFPB is toothless especially in the current political climate.  It goes to show LC has been suffering from a leadership vacuum the last couple of years, and management hasn't lifted a finger to improve things for borrowers or investors.  This action shouldn't have came as a complete surprise.

27
BlueVestment / Re: Bluevestment Down Again
« on: February 24, 2018, 06:42:37 PM »
I just noticed Bluevestment hasn't auto-invested in any loans for me in the last 2 weeks.  Usually it finds a few loans each day.  I haven't changed any of my settings/filters, and I don't think LC has changed anything either.  Do I need to find another service?

28
Investors - LC / Re: tax question: "worthless security"?
« on: February 09, 2018, 07:11:36 PM »
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. :)

I did that for a few years as well.  It was a pain to delete all the transactions if I didn't get the .txf file formatted properly.  After hearing from others on this forum that they just entered the totals with no ill effects, I started doing it too.

I just finished mine, and I noticed my tax software didn't generate a Form 8949 that lists the individual transactions.  As of 2017, it is no longer required as long as the 1099-B shows your costs basis, and there are no manual adjustments.  All the info is entered on line 1a (short-term) and 8a (long-term) on the Schedule D.

29
Investors - LC / Re: tax question: "worthless security"?
« on: February 09, 2018, 05:39:50 PM »
I don't think the IRS really cares about the dates as long as the amounts match what LC sent them.  You may be able to go to the form view and manually change the dates if you desire.

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.

30
Here is a week-old thread that explains the process:  https://forum.lendacademy.com/index.php/topic,4803.0.html

TL;DR Contact Lending Club for the proper form.  Lending Club will transfer the money to Strata (self-directed IRA custodian), and Strata will transfer it to the Roth IRA account of your choosing.

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