Recent Posts

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21
:( Sucks to hear  Over the last few days I purged a lot of notes that *should* have been pretty good ones.  Crappy that they are limiting the already tiny number of buyers driving my ability to get money back down.  I was extremely strict on my buying so the first 200 or so sold very fast and at easy break even prices.  Slowly been pricing the rest down from there every few hours.  Down to 35 notes now.  Hopefully the get on it soon.
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Investors - LC / Re: Crisis management - stop charge-offs ?
« Last post by jrl on March 22, 2020, 07:04:15 PM »
Perhaps I am confused.  But "charge-off" to me means something like "time to sell the debt."  Wondering if there is any guidance from LC as to what that means...?  And be nice to know exactly when in the default process the loans disappear off our books forever.

In any case, a whole lot of folks that are now or in the near future losing jobs/paychecks/businesses are gonna need quite some time to recover. Would love to hear directly from LC as to their plan for dealing with this.

"Charge-off" to LC in practice means that the borrower is behind by 4 principal payments by mid-month or the end of the month. If a borrower makes a payment when it's in default, but it only covers the interest portion, it will still charge-off.

I have yet to see any loans come out of  "charge-off" status, even though I've had a few that have fully recovered. They get counted as a loss for the full principal amount at the time of charge-off, but stay on the books for years at a zero-value. Theoretically it's possible to get a recovery years after a charge-off, I have a few charge-offs that pay a few dollars every now and then. The only negative is the amount of fee LC charges on those recoveries.
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Investors - LC / Re: Crisis management - stop charge-offs ?
« Last post by LC_investor on March 22, 2020, 02:00:45 PM »
Perhaps I am confused.  But "charge-off" to me means something like "time to sell the debt."  Wondering if there is any guidance from LC as to what that means...?  And be nice to know exactly when in the default process the loans disappear off our books forever.

In any case, a whole lot of folks that are now or in the near future losing jobs/paychecks/businesses are gonna need quite some time to recover. Would love to hear directly from LC as to their plan for dealing with this.
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Investors - LC / Re: Crisis management - stop charge-offs ?
« Last post by Fred93 on March 22, 2020, 12:50:36 PM »
I think you are confused.

"Charge off" is an accounting convention.  Nothing more.

They still try to recover funds, although they try less hard as time goes on, because the chance of recovering money goes down as the calendar pages flip by.
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Investors - LC / Crisis management - stop charge-offs ?
« Last post by LC_investor on March 22, 2020, 12:29:34 PM »
My concern in this virus/economic crisis is - if it is indeed prolonged for months - that a normal 30/60/90/default/charge-off bureaucratic/mechanistic response will wipe-out investor portfolios.   

I think charge-offs should immediately stop, and borrowers given plenty of time to recover, those that will.

I emailed LC to this regard.  If you agree as a P2P investor, perhaps you should be emailing your platforms.  And your legislators?  This shut down of our economy is unique, and it requires unique and creative and proactive solutions/responses.

Would like to hear other voices on this.  I know there are at least a few smarter then meself...
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Investors - LC / Re: Recovery rate
« Last post by AnilG on March 21, 2020, 06:49:49 AM »
Define recovery rate and you will get your answer. Net Recoveries / Remaining Principal makes better sense as Recovery Rate of Charged Off loans as you are using only data since charge off.
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The credit scores aren't updating. I've previously brought this issue up with LC and they told me they now update bi-monthly.

Visual representation of the issue: https://i.imgur.com/rQsuz8H.png The charts are two different random notes, one from my account, and one listed on folio.

Well, it's been two months and one week since the last update, and they still haven't updated.

So I emailed LC about this on Tuesday, and they responded "The credit scores should update in the next two days." on Wednesday. I have asked again this evening and still haven't received a response.

I think they're not taking this issue seriously because nobody else is noticing, because none of the automated systems would pick it up. The only values shown on the SecondayMarketAllNotes file are "CreditScoreTrend" and "FICO End Range" but if you look at the notes_ext or traded_notes_ext files there's a value labeled last_credit_pull_d which is the date the last credit score was pulled/updated.

When you think about it, every single note on folio currently shows a "credit score trend" that ends two months ago, which previously updated in the middle of every month. Any note could literally have went from a prime credit score to an extremely high risk score last month, or even the month before, and would still be listed with a flat or up trend. Obviously this problem gets exponentially worse the longer it persists.

I understand many here are trying to liquidate their accounts, and I would LOVE to buy your notes (that meet my criteria), but until the scores update I'm reluctant to buy a single note!

I'm currently sitting here with 15% of my account in cash because of this, hoping more people will raise this issue. It's frustrating.
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Investors - LC / Recovery rate
« Last post by serena_gallo on March 20, 2020, 12:05:31 PM »
Hi everyone,
Is correct to assess Recovery rate on Lending Club chargedoff loans in this way:
(recoveries-collections)/(loan_amount-total_rec_principal)
or It is more appropriate to this calculation:
total_rec_principal+recoveries/ loan_amount

Any suggestion?
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General P2P Lending Discussion / Recovery rate
« Last post by serena_gallo on March 20, 2020, 10:57:03 AM »
Hi everyone,
Is correct to assess Recovery rate on Lending Club chargedoff loans in this way:
(recoveries-collections)/(loan_amount-total_rec_principal)
or It is more appropriate to this calculation:
total_rec_principal+recoveries/ loan_amount

Any suggestion?
30
General P2P Lending Discussion / Re: Is It Time To Use The 'R' Word?
« Last post by jheizer on March 19, 2020, 03:25:27 PM »
I decided to try to GTFO.  Listed everything for break even prices.  People have been nice enough to buy 1/3 of them so far.  They are all very aged and stead so as long as things don't get too bad too fast someone is getting a great deal.
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