Author Topic: Accrued interest no longer reported in Account Total  (Read 7688 times)

flyp52

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Accrued interest no longer reported in Account Total
« on: October 09, 2013, 03:47:41 PM »
I like it better this way, now it matches the monthly statements.  It never made sense to me to include it in the first place.

ThinleyWangchuk

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Re: Accrued interest no longer reported in Account Total
« Reply #1 on: October 09, 2013, 05:23:28 PM »
It is still the same for my accounts

yojoakak

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Re: Accrued interest no longer reported in Account Total
« Reply #2 on: October 09, 2013, 06:12:55 PM »
You mean on the Account Summary?

I'm not seeing that, either.

yojoakak

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Re: Accrued interest no longer reported in Account Total
« Reply #3 on: October 09, 2013, 07:05:56 PM »
Just checked my Account Summary page again and Accrued Interest is gone.

Not just gone from Account Total but taken off the page entirely!

core

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Re: Accrued interest no longer reported in Account Total
« Reply #4 on: October 09, 2013, 07:21:58 PM »
I wonder what brought this about?  Excellent.  It's been a few weeks since we had a major event or scandal around here.

For what it's worth, I'm still able to see accrued interest by going to the More Details page.

Randawl

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Re: Accrued interest no longer reported in Account Total
« Reply #5 on: October 09, 2013, 07:36:36 PM »
I wonder what brought this about?  Excellent.  It's been a few weeks since we had a major event or scandal around here.

For what it's worth, I'm still able to see accrued interest by going to the More Details page.

I was a few minutes ago, too.  Until just now.  It's gone!  Looks like they were making the changes to people's accounts piecemeal.

core

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Re: Accrued interest no longer reported in Account Total
« Reply #6 on: October 09, 2013, 07:43:19 PM »
I think this is accounting games to boost their numbers for this quarter.  The borrower owes LC the accrued interest, but since we are essentially just placing bets on the outcome of that loan, one could argue that from their point of view the liability is not created until the bet wins (the borrower pays).

LonghornSF

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Re: Accrued interest no longer reported in Account Total
« Reply #7 on: October 09, 2013, 09:50:30 PM »
Wow, why don't they at least send out an email about these types of changes instead of leaving us to figure it out.  >:(   

LonghornSF

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Re: Accrued interest no longer reported in Account Total
« Reply #8 on: October 09, 2013, 09:51:31 PM »
Wow, why don't they at least send out an email about these types of changes instead of leaving us to figure it out.  >:(

I don't think it works that way. LC has no vested interest in how the loan performs other than collecting a servicing fee.

core

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Re: Accrued interest no longer reported in Account Total
« Reply #9 on: October 09, 2013, 10:09:30 PM »
I don't think it works that way. LC has no vested interest in how the loan performs other than collecting a servicing fee.

LC owns the loans.  You have a derivative.  While LC may not have a vested interest because you have insured them (with certain exceptions anyway), if they count the accrued interest from borrower members as revenue without also recognizing the liability to the note holders at that same instant, then they've inflated the balance sheet quick-like.  Keep in mind with all the nonperforming notes the difference could be substantial as a percentage.  Eventually you have to pay the piper though.

Dennis

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Re: Accrued interest no longer reported in Account Total
« Reply #10 on: October 10, 2013, 12:42:24 AM »
Nice observation.  This is what is so great about this board, I wouldn't have noticed that change so quickly, and now that I know about it I'm happy the accrued interest figure is gone (I'm easily pleased) - that number held little to no meaning for me.  I like real time, not maybe or should-be or will-be time.  Good move, nice improvement for LC.  I give it a 9.5 on the 10 scale.

LonghornSF

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Re: Accrued interest no longer reported in Account Total
« Reply #11 on: October 10, 2013, 02:31:36 AM »
I don't think it works that way. LC has no vested interest in how the loan performs other than collecting a servicing fee.

LC owns the loans.  You have a derivative.  While LC may not have a vested interest because you have insured them (with certain exceptions anyway), if they count the accrued interest from borrower members as revenue without also recognizing the liability to the note holders at that same instant, then they've inflated the balance sheet quick-like.  Keep in mind with all the nonperforming notes the difference could be substantial as a percentage.  Eventually you have to pay the piper though.

It's a nice conspiracy theory but I don't buy it. Lendingclub will not be valued based upon its balance sheet, I promise you that. There are a lot of IPO puffery techniques out there (i.e. loosening underwriting standards) but this one isn't going to boost their value. LC would be required to recognize the associated liability anyways under GAAP.

Peter

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Re: Accrued interest no longer reported in Account Total
« Reply #12 on: October 10, 2013, 08:11:51 AM »
I have lobbied against the Accrued Interest number for a long time. I think it is confusing for many investors and also provides a mismatch at the end of the month with the statement numbers. Now, they will be in sync which is a good thing.
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns

New Jersey Guy

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Re: Accrued interest no longer reported in Account Total
« Reply #13 on: October 10, 2013, 08:40:10 AM »
Accrued interest for each note is now being shown on the "Loan Performance" page.  Look for it right below "Credit Score Change".

https://www.lendingclub.com/foliofn/loanPerf.action?loan_id=739193&order_id=12105901&note_id=4545846
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

thezinfan

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Re: Accrued interest no longer reported in Account Total
« Reply #14 on: October 10, 2013, 10:43:50 AM »
Indifferent about the change, but really scratching my head. Why wouldn't they send out an email about this in advance? Since they didn't, I had already sent of an email to my rep asking why my balance is screwy. I'm sure customer service is fielding extra calls/emails today.