Entertaining listings

[cfb]

https://www.lendingclub.com/browse/loanDetail.action?loan_id=22402682&previous=browse

I'm pretty sure this guy is an award winner in the category of "How much revolving debt again...?"

Can't believe LC approved this AND its going to fully fund.

[lascott]

https://www.lendingclub.com/browse/loanDetail.action?loan_id=22402682&previous=browse
I'm pretty sure this guy is an award winner in the category of "How much revolving debt again...?"
Can't believe LC approved this AND its going to fully fund.

Someone let him put part of his mortgage on his cash-back credit card! He/she would have passed my basic filters.

Not sure how 323K is only a "Revolving Line Utilization [of] 56.20%"?!?  Must be just a home equity line of credit (HELOC) that is not actually being tapped.

[update]I see from the IR screen that he/she is a landlord:  "Mortgage Accounts 11".  That income is misleading then: "Income $10,417/mo" [/update]

[Fred]

Listings with large revolving credit usually had a HELOC component.

[Victor]

This kind of discussion makes the forum valuable to those of us without a background in banking and finance.  This loan would pass all of my filters though the high revolving credit balance would have led me to pick another loan.  I had no idea that an unusually large revolving credit balance may result from an untapped HELOC.  Is the consensus of the group that this loan should have been avoided at all costs?

[Fred93]

I had no idea that an unusually large revolving credit balance may result from an untapped HELOC.  Is the consensus of the group that this loan should have been avoided at all costs?

Consensus?  No. 

It is weird, and I would have rejected it if I had manually reviewed it just on that basis, but I have no evidence that these numbers demonstrate a higher risk or lower return.  I've learned that my intuition doesn't tend to match the statistics, so I go with the statistics.

[rawraw]

  I've learned that my intuition doesn't tend to match the statistics, so I go with the statistics.

Be careful. . .

[core]

I had no idea that an unusually large revolving credit balance may result from an untapped HELOC.

An untapped HELOC cannot result in a large revolving credit balance.  Swap the signs on either of those words and it can be true.

[RaymondG]

Definitly reject it since the revolving credit balance is way over the annual income. I just filter out any loans with data outlier.

[hoggy1]

Core is right,

It is almost certainly a HELOC but it is NOT untapped.

[hoggy1]

Hey I got a new candidate.

https://www.lendingclub.com/browse/loanDetail.action?loan_id=26210157&previous=browse

Out of a possible 999 in my scoring system this one scored a record low -158 (minus 158) and it looks even worse when I check the detail. How its nearly fully funded in 10 minutes is beyond me. I don't get it!

[lascott]

Hey I got a new candidate.
https://www.lendingclub.com/browse/loanDetail.action?loan_id=26210157&previous=browse
Out of a possible 999 in my scoring system this one scored a record low -158 (minus 158) and it looks even worse when I check the detail. How its nearly fully funded in 10 minutes is beyond me. I don't get it!

Perhaps people were swayed by the job title...

PeerCube:


InterestRadar:

[Rob L]

Hey I got a new candidate.

https://www.lendingclub.com/browse/loanDetail.action?loan_id=26210157&previous=browse

Out of a possible 999 in my scoring system this one scored a record low -158 (minus 158) and it looks even worse when I check the detail. How its nearly fully funded in 10 minutes is beyond me. I don't get it!

The $20k loan was funded by a relatively few investors (43).
It's been postulated that loans with few investors represent the "smart money", the "good loans", etc.
Large investor(s) and quickly funded.
Not at all saying I subscribe to that theory, but this loan qualifies.

[hoggy1]

When I first got to it it was 94% funded by 9 people in 5-8 minutes (I was a little late at feeding time). I have believed in the fast-smart money story because I often have trouble getting loans that score high on my rating system before they are fully funded. IE because my portfolio is so new, that was my only evidence that I might have a good scoring system. Now I'm not so sure about the fast-smart money.

[Fred93]

I have believed in the fast-smart money story because I often have trouble getting loans that score high on my rating system before they are fully funded. ... Now I'm not so sure about the fast-smart money.

There may or may not be fast smart money, but there is definitely fast stupid money.

[hoggy1]

Borrower is a Sacristan? Look that one up. Maybe God will save these lenders but I'm not counting on it.