Author Topic: "employment: N/A"  (Read 8661 times)

DutchNurse

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"employment: N/A"
« on: September 11, 2013, 09:08:46 PM »
Yeah, what the title said.

Tell me this response can stand for legitimately self-employed with a $4,000+ a month income and that I'm not "partners in the dream for a brighter future" with Walter White.

Next, of course, is the obvious question... just how can you be sure you make exactly 3,750 per month...

I guess I just have to trust the behind the scenes that lending club is verifying this and this guy is one of the 90% that made the cut
« Last Edit: September 11, 2013, 09:13:34 PM by DutchNurse »

core

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Re: "employment: N/A"
« Reply #1 on: September 11, 2013, 09:25:31 PM »
If it doesn't have a '*' by it, then no the income wasn't verified by LC.  Hey, there's a lot of ways to make $3750+ a month without being employed.  Maybe he's a 'pro'  investor, taking out a loan because he doesn't watch to touch his precious cash.  Income from unemployment.  Royalties.  Rental income.  Alimony from the rich wife who ditched him.  Or he's a drug dealer.  Folio trader.  He could even be a member of DanB's infamous blackjack team.

Fred

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Re: "employment: N/A"
« Reply #2 on: September 11, 2013, 10:09:31 PM »
Next, of course, is the obvious question... just how can you be sure you make exactly 3,750 per month...

Most likely the borrower's income is 45K/year, and he simply divided it by 12 to get the monthly number.

SeattleSun

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Re: "employment: N/A"
« Reply #3 on: September 11, 2013, 10:49:46 PM »
Credit Variables Explained: Employment Tenure
http://www.orchard-app.com/blog/?p=365


Below is the performance based on employment tenure.  Based on these numbers, the stability of income is not as strong a predictor of performance as other variables we’ve reviewed, but there is some weakness in the lower end.  Specifically, we do not like the “n/a” category.  It isn’t entirely clear what this means, but from the performance below, it isn’t good and should likely be omitted from any filtering strategy.  Any further exclusion decisions would have to depend on the investor’s risk/return preferences and expectations.



[attachment deleted by admin]
« Last Edit: September 11, 2013, 10:52:44 PM by SeattleSun »

cfb

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Re: "employment: N/A"
« Reply #4 on: September 12, 2013, 10:33:19 AM »
I always took the "n/a" to mean self employed.  While the recent LC data may say one thing, longer term unsecured consumer debt analysis told me that self employed were more likely to pay late, but defaulted less.

Couple of cases in point on 'where does the money come from', I make about 4k a month in largely passive income activities, and my girlfriend gets 80k a year in child support, both of which are considered income.  Of course, her child support income stops in about 3 years, after which her income will take a huge drop if she doesn't go back to work full time.

lascott

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Re: "employment: N/A"
« Reply #5 on: September 14, 2014, 11:16:35 AM »
Credit Variables Explained: Employment Tenure
http://www.orchard-app.com/blog/?p=365
Below is the performance based on employment tenure.  Based on these numbers, the stability of income is not as strong a predictor of performance as other variables we’ve reviewed, but there is some weakness in the lower end.  Specifically, we do not like the “n/a” category.  It isn’t entirely clear what this means, but from the performance below, it isn’t good and should likely be omitted from any filtering strategy.  Any further exclusion decisions would have to depend on the investor’s risk/return preferences and expectations.
[attachment deleted by admin]

Correction to new URL format: http://www.orchardplatform.com/blog/credit-variables-explained-employment-tenure

I don't know what to make of this graph.  How is it possible that all the default rates are greater than 5% ... oh wait because this would include F & G notes I guess???

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Randawl

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Re: "employment: N/A"
« Reply #6 on: September 14, 2014, 01:31:56 PM »
Credit Variables Explained: Employment Tenure
http://www.orchard-app.com/blog/?p=365
Below is the performance based on employment tenure.  Based on these numbers, the stability of income is not as strong a predictor of performance as other variables we’ve reviewed, but there is some weakness in the lower end.  Specifically, we do not like the “n/a” category.  It isn’t entirely clear what this means, but from the performance below, it isn’t good and should likely be omitted from any filtering strategy.  Any further exclusion decisions would have to depend on the investor’s risk/return preferences and expectations.
[attachment deleted by admin]

. . .

I don't know what to make of this graph.  How is it possible that all the default rates are greater than 5% ... oh wait because this would include F & G notes I guess???


Possibly. But, the truth is that I could link you four different sources and all four will have different default rates for the same data.     ;)

As far as employment tenure goes, I don't always invest in employment N/A loans; but when I do, I consider the all data points together as a whole.

brycemason

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Re: "employment: N/A"
« Reply #7 on: September 14, 2014, 03:38:01 PM »
...I don't always invest in employment N/A loans; but when I do, I consider the all data points together as a whole.

He is...the most interesting man in the world...


Randawl

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Re: "employment: N/A"
« Reply #8 on: September 14, 2014, 06:15:51 PM »
...I don't always invest in employment N/A loans; but when I do, I consider the all data points together as a whole.

He is...the most interesting man in the world...



*internet high five*

Thatguybil

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Re: "employment: N/A"
« Reply #9 on: September 14, 2014, 11:34:20 PM »
and my girlfriend gets 80k a year in child support, both of which are considered income.  Of course, her child support income stops in about 3 years, after which her income will take a huge drop if she doesn't go back to work full time.


That's crazy.
The kid(s) better have a fully loaded 529 savings plan that will full pay for college.
80k in child support.. Crazy.

hoggy1

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Re: "employment: N/A"
« Reply #10 on: September 15, 2014, 08:51:32 AM »
I always took the "n/a" to mean self employed.  While the recent LC data may say one thing, longer term unsecured consumer debt analysis told me that self employed were more likely to pay late, but defaulted less.

I have not just gone and looked but my recollection is every time I see n/a for title/employer I also see n/a for employment length. Even a self employed person can tell us how long they have maintained that state of affairs. I don't touch any n/a loans.
Steve

Lovinglifestyle

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Re: "employment: N/A"
« Reply #11 on: September 15, 2014, 11:04:52 AM »
I always took the "n/a" to mean self employed.  While the recent LC data may say one thing, longer term unsecured consumer debt analysis told me that self employed were more likely to pay late, but defaulted less.

I have not just gone and looked but my recollection is every time I see n/a for title/employer I also see n/a for employment length. Even a self employed person can tell us how long they have maintained that state of affairs. I don't touch any n/a loans.

I think "n/a" as an answer should be disallowed  and "Source of Income" should be added.

Randawl

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Re: "employment: N/A"
« Reply #12 on: September 15, 2014, 07:16:34 PM »
I always took the "n/a" to mean self employed.  While the recent LC data may say one thing, longer term unsecured consumer debt analysis told me that self employed were more likely to pay late, but defaulted less.

I have not just gone and looked but my recollection is every time I see n/a for title/employer I also see n/a for employment length. Even a self employed person can tell us how long they have maintained that state of affairs. I don't touch any n/a loans.

I think "n/a" as an answer should be disallowed  and "Source of Income" should be added.

I think that's a good idea. At least it is as long as LC can figure out how to disallow the answers of "my job" and "my work."        ;D

Thatguybil

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Re: "employment: N/A"
« Reply #13 on: September 15, 2014, 09:56:33 PM »
I always took the "n/a" to mean self employed.  While the recent LC data may say one thing, longer term unsecured consumer debt analysis told me that self employed were more likely to pay late, but defaulted less.

I have not just gone and looked but my recollection is every time I see n/a for title/employer I also see n/a for employment length. Even a self employed person can tell us how long they have maintained that state of affairs. I don't touch any n/a loans.

I think "n/a" as an answer should be disallowed  and "Source of Income" should be added.

I think that's a good idea. At least it is as long as LC can figure out how to disallow the answers of "my job" and "my work."        ;D

"Stuff"

lascott

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Re: "employment: N/A"
« Reply #14 on: September 16, 2014, 11:34:43 PM »
Credit Variables Explained: Employment Tenure
http://www.orchard-app.com/blog/?p=365
Below is the performance based on employment tenure.  Based on these numbers, the stability of income is not as strong a predictor of performance as other variables we’ve reviewed, but there is some weakness in the lower end.  Specifically, we do not like the “n/a” category.  It isn’t entirely clear what this means, but from the performance below, it isn’t good and should likely be omitted from any filtering strategy.  Any further exclusion decisions would have to depend on the investor’s risk/return preferences and expectations.
[attachment deleted by admin]

. . .

I don't know what to make of this graph.  How is it possible that all the default rates are greater than 5% ... oh wait because this would include F & G notes I guess???


Possibly. But, the truth is that I could link you four different sources and all four will have different default rates for the same data.     ;)

As far as employment tenure goes, I don't always invest in employment N/A loans; but when I do, I consider the all data points together as a whole.

Was playing around with PeerCube.com
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y