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31
Investors - LC / Re: hardship fields in spreadsheet wrong
« Last post by rj2 on May 09, 2020, 01:00:49 PM »
It's an email exchange.

My first email raises the issue and requests that they reverse folio sales for "hardship" loans on the grounds that "never late" is misleading. They reply suggesting I sell them on to other unsuspecting people:

Quote from: LC
Thanks for reaching out to us.

Since borrowers now have the option the enroll in a hardship plan or
deferred payment plan due to the current economic crisis, this allows their
loans to remain in "Current" status for the time being. I understand how
this can affect your strategy for buying Notes on Folio however, and I'm
happy to forward your feedback along to the appropriate team to see if they
can adjust these recent changes for the Folio platform.

While all sales on Folio are final and we're unable to reverse these
transactions, you're always welcome to relist those Notes for sale. We
apologize for the inconvenience and appreciate your patience during this
time.

Best,
Gabe

LendingClub Investor Services

I reply with a very short email:

Quote from: me
Do you really think it is accurate, and not misleading, to call these loans "never late"?

and they reply with

Quote from: lc
The reason why they are showing as "never late" is because enrolling in these payment deferment plans prevent the loan status from going into an official "late" status, which would impact the borrowers' credit.

LendingClub feels strongly about providing options to help support borrowers during this financial crisis. Please know that we have never intended to present misleading information to our investors, however the options we are providing to borrowers are quickly changing due to the current conditions that we're in and because of that, Folio may not be able to stay up to date with all of the changes that we are making. I understand your concern, however, and will surely pass your feedback along to our management team.

Best,
Gabe

LendingClub Investor Services
32
General Lending Club Discussion / Re: LC workforce reduction
« Last post by rawraw on May 09, 2020, 11:23:14 AM »
One thing banks do in crisis is shrink assets. This keeps capital ratios strong. So I am not surprised they don't want to grow a bunch in consumer loans, but the drop is quite amazing
33
This is why origination businesses trade at lower multiples. Very volatile earnings stream
34
Investors - LC / Re: hardship fields in spreadsheet wrong
« Last post by nonattender on May 09, 2020, 07:44:52 AM »
I complained to lending club and they insist they do not think it's misleading to list them as "never late".

Get that in writing.  Apparently they're a bit slow on learning those "tone at the top" lessons.
35
Investors - LC / Re: hardship fields in spreadsheet wrong
« Last post by Fred93 on May 08, 2020, 11:13:28 PM »
I had the same experience.  I realized only recently that my software had been buying loans indicated by LC as "never late" loans when in fact these loans had not made payments for a few months, which is completely bogus. 

The shame is on LC for this.  This is just plain misleading.


36
Investors - LC / Re: hardship fields in spreadsheet wrong
« Last post by rj2 on May 08, 2020, 10:49:47 PM »
What really ticked me off is that in folio when you search for "never late" notes, these hardship notes are included in the results, even though they haven't made payments in a few months. They only way to identify them is to click through to the loan and see the "hardship" notation, there's no way I can see of filtering them out.

I complained to lending club and they insist they do not think it's misleading to list them as "never late".

I only discovered this after seeing discussion here, then went back and realized I had bought a bunch of "hardship" loans in folio without realizing it--and I paid full price for them, as though they were really never late.
37
Investors - LC / Re: hardship fields in spreadsheet wrong
« Last post by Fred93 on May 08, 2020, 10:31:49 PM »
My guess is that they're attempting to hide this from retail.

Sloppiness, extreme disinterest, indifference, lack of caring, lethargy, lassitude, incompetence, all much more likely that evil intent. 

I'm guessing that the new covid19 related deferrals are really a different (new) program than the old hardship program and the software changes to implement it were a quick hack job with little review, and nobody at LC pays attention to the retail program any more, so when they didn't bother to write the code to update the fields in the spreadsheet, nobody noticed, or maybe one guy did notice at about the time he was handed his pink slip last week.
38
Investors - LC / Re: hardship fields in spreadsheet wrong
« Last post by jrl on May 08, 2020, 08:47:14 PM »
Just so you know, I noticed the issue (but not in the spreadsheet) in early April, so it's been like this for over a month now:

https://forum.lendacademy.com/index.php/topic,21636.msg61755.html#msg61755

Initially, they did show up as IGP, then they got converted to "Deferred" (I guess) as the borrowers called in and asked for it.

Since last month I can confirm that my month over month earnings from the account that I'm winding down have went from around 6-8% yearly to negative 2%. Though because the notes are listed as "current" my ANAR has gone up by around 0.2 percentage points, and my implied APR (based on LC's adjustment) has gone up 3 percentage points, from 8% APR to 11%.

My other account has shown even "better" numbers, due to purely Folio reinvestment since I lost primary market access in September. (It's still turning a profit.)

In both accounts I'm seeing notes get converted from IGP and late to current ("deferred") just about every day. Though some of these accounts have been making payments before the end of the deferral term.

My guess is that they're attempting to hide this from retail. My expectation is around 3-6 months of near break-even (for me) returns, then a higher than normal amount of late notes converting into charge-offs around year-end before a return to normal returns (for these older notes) in the new year. I would expect just like in other hard times that the new notes being issued in the next few months will have much better returns than we've seen in the past few years.
39
Investors - LC / hardship fields in spreadsheet wrong
« Last post by Fred93 on May 08, 2020, 07:37:10 PM »
I sent this to LC today...

Quote
From:      xxxxxxxxxxxxxxx
To:      support@lendingclub.com
Subject:      hardship fields in notes spreadsheet are wrong
Date:      Fri, May 8, 2020 4:34 pm

On the "notes" web page, there is a link to download a spreadsheet containing info on all the notes in one's account.

That spreadsheet for some time now has had incorrect information in all the "hardship" columns.  Notes in hardship plans are not flagged as they are supposed to be.

The only way a customer can learn that a note is in a hardship plan now is to look at the note's DETAIL page, and this is cumbersome to the point of being unworkable for folks with 10,000 or 20,000 notes!

Please fix the spreadsheet.

Example...
Loan id: 142417793
Note id: 192978176

This loan is in a hardship plan, as shown on the loan detail web page.  However the hardship flag column contains an "N" on the spreadsheet, and all the other hardship columns are blank.

This is just one example.  There are a great many of these nowadays.

The lack of information on the notes or account summary pages and the incorrect/missing information on the spreadsheet leaves retail customers no way to track the true status of their loans.  It would appear, just looking at dates of last payment, like about 11% of loans are now on hardship plans.  This is a significant impairment, so should be mad visible to customers.


40
Investors - LC / Re: Review of my lending club account
« Last post by JDII on May 07, 2020, 09:09:15 PM »
Quote
I notice that your NAR has risen by almost a percentage point over the last couple months, despite the dramatic downturn in the economy. As noted in another thread, this discrepancy can likely be explained by the fact that LC continues to class as Current many notes that are actually no longer being paid.

Have you checked to see how many of your "Current" notes are on Hardship Plan?

My NAR has been trending up for months.  It has trended up more since all this foolishness started in March.  I would guess that a lot of notes that would be In Grace are in the Hardship category.  It seems the NAR is counting them as Current.  I haven't dived into the math on that but it feels like that is the case. I would bet most people are seeeing their NAR trend up right now.

What is going to happen in June and July is the real question. 

43 of my notes are in Hardship.  That would be 5.5% of my total notes and 7.5% of my current notes. 

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