Author Topic: Starting today, Folio prevents selling notes with processing payments.  (Read 18500 times)

rlv99

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #30 on: November 11, 2013, 12:37:19 AM »
I believe that there may be other reasons for these new rules.

From other threads on this site, we all know that LC's payment processing and collection procedures are fraught with inconsistencies and very possibly erroneous.  The payment and collection logs are vague, illogical, variable from one loan's log to another, and changable thereby making the logs of little help when attempting to determine the real ststus of a loan's payment history.

Since we pay LC to collect and post the payments to our account, these new rules, imo, help to insulate LC from accusations of mismanagement and/or breach of fiduciary responsibilty since payments on loans in the process of being collected can no longer be traded.  Presumably, these new rules give LC about 10 days to get their collection "act" together.  It will be interesting to see if they use this extra time wisely.

DanB

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #31 on: November 11, 2013, 12:50:29 AM »
I realize that I am way too controversial for this post (plus I'd die of boredom) so I recommend none other than the former unrestricted Q&A Grand Inquisitor known to veteran LC investors as RetiredUSMC, to head this investigative commission.

Haha yeah I remember that guy.  You know what, it would almost be worth it losing all my trading privs for a while if I got the chance to get grilled by that character.  Which reminds me, happy Veteran's Day everyone.

In the longer term I believe that individuals who have exhibited the tendency to have multiple "emergencies" in rapid succession, (ex. more than 1 emergency per day) be put on a temporary "no selling" list until an independent investigative commission can hear their case thoroughly & determine the nature of these alleged legitimate emergencies. :)

Dan you may not yet have seen Peter's post in the other thread where he says there are plans in the works for a new, competing trading platform.  Does that sound to you like things were winding down trading-wise?   Sure doesn't to me!  I for one am excited about the idea.  I could post details about how I'd get around your trading death panel but I don't think it'll be necessary now.  There may be even more profits to be made in the future.  Have some optimism Dan.  More sharks in the water for you to chase.  Clever sharks with lots of new sharkie ideas.


No, I didn't see it. Was it one of those posts where he says whatever & ends with stay tuned, will follow closely or words to that effect? I see, well if you don't mind I'll wait for the movie instead. So do you believe this new proposed platform is also going to be run secretly by LC?  :)

Oh please do. I am always open to feedback, revisions & improvement.

PS...........I just read Peter's post about the secondary market. I especially liked the part where he said that he knew of "at least one company" that was in the idea stage of creating a secondary market competitor. If it was one, just say one. If it's two or three, just say the number. I don't see the harm. But ok, I'm willing to accept that I suppose, if you guys in turn accept this................I know of at least one company (my own) that is in the idea stage of planning a mission out of the solar system. Once we get funding, build a craft, steal some NASA data, license the propulsion from the Russians & etc etc............we will be on our way in 18-24 years.  :) Stay tuned for updates. 
« Last Edit: November 11, 2013, 03:02:02 AM by DanB »

yojoakak

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #32 on: November 11, 2013, 09:37:41 AM »
Lending Club runs the whole thing.  Folio doesn't "operate" anything on that site.  Folio has nothing to do with it except for the "settlement". 

They even go through the trouble to "brand" the sites differently, which I think that's kind of funny.

For example:

https://www.lendingclub.com/account/loanPerf.action?loan_id=1206550&order_id=2503892&note_id=9592772

https://www.lendingclub.com/foliofn/loanPerf.action?loan_id=1206550&order_id=2503892&note_id=9592772
« Last Edit: November 11, 2013, 09:40:47 AM by yojoakak »

core

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #33 on: November 11, 2013, 09:48:08 AM »
They even go through the trouble to "brand" the sites differently, which I think that's kind of funny.

Yep.  I was going to assemble a laundry-list of "proof" last night, but decided it was a lost cause.  Dan is calling me nuts for saying that, and the level-headed newcomer Bohb Daishi seems to be a true believer based on what he said about the "buy-vs-make" argument.  Peter said something about conflict of interest just yesterday too, which makes me think even he was taken in by this farce... that or playing along.  I think this is all going to fall on deaf years, yojoakak.  Sounds like Zach knows the score though.

Bohb Daishi

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #34 on: November 11, 2013, 12:06:13 PM »
the level-headed newcomer Bohb Daishi seems to be a true believer based on what he said about the "buy-vs-make" argument.

I think that's the first time anyone has called me "level-headed". I take it as a compliment.

I'd be willing to bet that Folio operates very similar to SalesForce. It's all on the cloud, housed in Folio's servers. Folio's core software is then customized by LendingClub and is then magically linked up to LC's database. That "magic link" is one of the reasons why there are a lot of problems, or technical inefficiencies, in the market.

This could explain why trades take a full business day to settle. Also explains why pending trades don't show up in LC's main site and why the two platforms look -and feel- so different.
« Last Edit: November 11, 2013, 12:08:17 PM by Bohb Daishi »
There are three ways to make a living in this business: be first, be smarter, or cheat.

core

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #35 on: November 11, 2013, 01:17:57 PM »
I think that's the first time anyone has called me "level-headed". I take it as a compliment.

It was meant as one.  Earned.  Now I do understand that someone doesn't generally come to a new forum and start spouting off UN-level-headed stuff (even if they're thinking it).  I mean when I had just 23 posts I probably sounded pretty level-headed too.  Well except for that LC conspiracy about the fake building.  And the moon landings.  And maybe a few other things.  Ok after further thought, I take it all back.  But yes you've thus far been pretty level-headed even though you've fallen for "their" tricks.

It's all on the cloud, housed in Folio's servers.

Dear Lordie, not "the cloud".  Please tell me you're not a salesperson.  My brother is a salesperson.  He talks just like you do.  I implement stuff; I write code.  He talks to people and pretends like he knows what he's selling.  I asked him what the h3ll the cloud can be when it's in the same room as all the other stuff.  I guess now a cloud can be anything composed of 2 devices spaced 1cm apart.  Hey I guess my personal machine is a cloud since I have external USB storage.  Salesperson told me that doesn't count.  Ok great.  Everything settled.

Folio's core software is then customized by LendingClub and is then magically linked up to LC's database. That "magic link" is one of the reasons why there are a lot of problems, or technical inefficiencies, in the market.

My suspicion is that many of the observed technical inefficiencies are caused by either a load-balancing reverse proxy or a slaved database setup.  I could be wrong.  This explanation does have the advantage in that it does not rely on magic.

This could explain why trades take a full business day to settle.

The trades take a full business day to settle to give them time to screw us.  And so they can cancel anything that they can pre-determine is going to make us money.  Also I am sure that there are legal reasons.  Same as why T+3 exists for stocks, or even for options it's still T+1.  The difference is, for options and stocks, the 'settlement' date really has no bearing on anything.  You can trade right out of it minutes later for a profit even though you won't receive the shares until 3 days later.  (Assuming you're not free-riding on a cash account.)  Note trading should be the same.  It can be.

Also explains why pending trades don't show up in LC's main site and why the two platforms look -and feel- so different.

You can talk about "-feel-".  I'm going to talk about code.  And it's exactly the same.  Even an outsider can get a good sample of the programmer(s) tendencies just by getting into it.  You begin to write code for a site, and even before going to the next page on the site you can anticipate exactly what they did, exactly what small mistakes they made.  And when you move over to a "whole different site" (/foliofn) then when you see the same rounding errors and same obscure approaches were used, well it doesn't take too many smarts to realize what's really going on.

Joleran

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #36 on: November 11, 2013, 02:10:53 PM »
Do we have any confirmed sightings of what happens when a payment is posted on a note for sale after the changes?

core

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #37 on: November 11, 2013, 02:37:01 PM »
Do we have any confirmed sightings of what happens when a payment is posted on a note for sale after the changes?

Can you clarify the question?  The trades get busted the day after a normally-scheduled payment posts, as always.  At least mine did.  Perhaps you were asking about a different situation?

Joleran

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #38 on: November 11, 2013, 05:15:17 PM »
Can you clarify the question?  The trades get busted the day after a normally-scheduled payment posts, as always.  At least mine did.  Perhaps you were asking about a different situation?

Wouldn't the normally scheduled posts have a "Processing..." state that nixes them anyway?  I meant more like grace period notes for sale that just have a payment post with no apparent processing.

core

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #39 on: November 11, 2013, 05:37:13 PM »
Wouldn't the normally scheduled posts have a "Processing..." state that nixes them anyway?

Sure, they get "nixed" on the day that they are scheduled.  But let's just say for the sake of argument that one was still able to post them.  Then they would be subject to the previous cancellation rules.  No more, no less.

I meant more like grace period notes for sale that just have a payment post with no apparent processing.

That one I don't know about.  I guarantee 100+ lurkers know about it though... now.  Profit is going to be limited by that.

Joleran

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #40 on: November 11, 2013, 06:03:27 PM »
That one I don't know about.  I guarantee 100+ lurkers know about it though... now.  Profit is going to be limited by that.

Core, you think that lending club is going to let 30% discounted grace notes go for sale after a payment posts and let the buyer get away with a near 30% discounted current note?  I didn't really think they'd do anything to change their payment posted = cancelled policy, but I wanted to see if anyone saw differently.

One thing I definitely see is the stupid "Processing.." status pop up on the monthly anniversary of note on payment plans.  That royally sucks, and can make a note almost impossible to list if they don't fix it.

Bohb Daishi

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Re: Starting today, Folio prevents selling notes with processing payments.
« Reply #41 on: November 12, 2013, 01:32:43 AM »
I mean when I had just 23 posts I probably sounded pretty level-headed too.  Well except for that LC conspiracy about the fake building.  And the moon landings.
The only conspiracy theories you'll hear me talking about are related to the corruption I've seen on Wall Street and on the Futures markets.

Please tell me you're not a salesperson.
Nope. I'm just some upstart kid who works nights for a trading firm at the CBOT.

This could explain why trades take a full business day to settle.
The trades take a full business day to settle to give them time to screw us.  And so they can cancel anything that they can pre-determine is going to make us money.  Also I am sure that there are legal reasons.  Same as why T+3 exists for stocks, or even for options it's still T+1.  The difference is, for options and stocks, the 'settlement' date really has no bearing on anything.  You can trade right out of it minutes later for a profit even though you won't receive the shares until 3 days later.  (Assuming you're not free-riding on a cash account.)  Note trading should be the same.  It can be.[/quote]

There's no excuse for the all-electronic stock/options exchanges to not have same-day or immediate settlement. It's just a big scheme they employ so the brokers and clearing firms can make a few extra pennies on their margin loans.
There are three ways to make a living in this business: be first, be smarter, or cheat.