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Messages - mrwhizzard

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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.

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. :)

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.

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):

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:

  • 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.

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...

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".

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.

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...

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...

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
Best regards,
The LendingClub Team

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.

Investing - General (not P2P) / Re: High Yield Savings
« on: August 10, 2017, 12:00:10 PM »
Weird also is Ally's 11 month CD @1.5% APY with NO early withdrawal penalty.

I did some of those. Except for my own snafu no hassles. Probably made easier as I deposited the cash into a savings account there first (1.15% APY), then used it to fund the 1.5% 11 month CD's.

Yep, I have also opened a few of these. Also painless for me (about 3 minutes to click through the steps), since I too have other accounts there.

My snafu was that I bought 9 CD's and violated the maximum of 6 transfers in a statement period for my savings account. The extra 3 cost me $10 each. My bad.

So if you open several accounts at once, and fund them all from the same source, they still make individual withdrawal transactions? I was wondering about that, and I'm glad you found out for me.  :)

I'm still suspicious of their calculations.

I agree with you. I see the same discrepancy between XIRR and Prosper's annualized return in my account, of roughly the same magnitude (9.07% XIRR vs 8.00% "All Notes").

Investors - LC / Re: Lending Club Collection Actions
« on: June 06, 2017, 12:09:43 PM »
Well, it doesn't look like mine is going to have a big payoff either. There's now a payment pending in the amount of $0.06 (when the monthly payment amount was previously $0.69):

And now it charged off. So I guess the "agreed to pay a settled amount" was in the neighborhood of $0.003 per $1...

Investors - LC / Re: Lending Club Collection Actions
« on: May 26, 2017, 02:35:31 PM »
Going back to look at this note,  Loan id: 69513508, doesn't look like the settlement amount was ever paid, a payment was posted 12/9 that was a 1/3 of the regular monthly payment, loan charged off January.

Well, it doesn't look like mine is going to have a big payoff either. There's now a payment pending in the amount of $0.06 (when the monthly payment amount was previously $0.69):

So one of my IGP notes is on a "Hardship Plan" now.

Well, even though this note is still showing up in my portfolio, when I try to click on it to see the details, I now get an error message: "Invalid Note or Order specified". No idea what that means, but it doesn't seem good...

Investors - LC / Re: Lending Club Collection Actions
« on: May 16, 2017, 10:59:28 AM »
I have an interesting C and D.

What was the final disposition of this note? I have a note with a "settled amount" in the collection log now, as well:

5/12/17 (Friday)    Payment Solutions specialist contacted 3rd party and 3rd party agreed to pay a settled amount
5/12/17 (Friday)    3rd party contacted Payment Solutions specialist and was unable to pay at this time
5/10/17 (Wednesday)    Borrower requested that Lending Club cease and desist all communications
5/10/17 (Wednesday)    3rd party contacted Payment Solutions specialist and was unable to pay at this time

I'm curious what bucket this falls in. Would it still be a charge-off, even though a settlement was reached?

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