Author Topic: Folio ending August 28th.  (Read 1204 times)

bkcarp00

  • Newbie
  • *
  • Posts: 14
    • View Profile
Folio ending August 28th.
« on: August 06, 2020, 08:06:54 PM »
Official email today Folio investing will be discontinued on August 28th. Very bad news for anyone that uses folio to buy/sale. I've sold off around ~160K over the last year to liquidate my account. so happy I was able to get out while I had the chance.

"An Update on Folio

As a Folio account holder, you know that historically Folio Investments, Inc. (Folio) has offered a secondary market for Notes, where individuals could buy and sell Notes to and from other investors. LendingClub was recently notified that Folio is being acquired by a financial institution and, as a result, the secondary market for Notes will be discontinued.

Please know that the closure of the secondary market will not affect the Note investments in your LendingClub account, and your LendingClub account will continue to be serviced as usual.

Should you wish to buy or sell Notes on the secondary market, please keep these key dates in mind:
August 26, 2020: The last day you will be able to list a Note for sale. Any remaining Note listings on the trading platform at the end of the day will expire or terminate. Any trades executed on August 26, 2020 will settle in accordance with standard settlement procedures on August 27, 2020.

August 28, 2020: Investor account(s) with Folio for trading Notes will be closed, after which you will be able to log in to view statements and legal agreements only.
While most investors consider Notes to be part of their buy-and-hold long-term investment strategy, we understand that the secondary market has provided a valuable option to those who needed it. We're disappointed in the decision and understand that investors who actively trade Notes will be disappointed too. Because the secondary market has always been offered by a third party, we unfortunately do not control its availability."

t_b_o_t

  • Newbie
  • *
  • Posts: 6
    • View Profile
Re: Folio ending August 28th.
« Reply #1 on: August 22, 2020, 12:51:10 PM »
This absolutely sucks.  Invested a lot of time and money building out a note buying algo and was finally just starting to turn profitable.  What a disappointment. 

Fred93

  • Hero Member
  • *****
  • Posts: 2245
    • View Profile
Re: Folio ending August 28th.
« Reply #2 on: August 23, 2020, 05:18:24 PM »
LC does have a secondary market.  It is for "institutions only".  They told me I'd have to form an LLC to go further.  I found this would cost me a lot of money.  State of CA has a fee to form an LLC and an annual tax, and I'd have to pay an accountant to make another tax return every year.  I figured a few thousand a year.  I did not proceed.

t_b_o_t

  • Newbie
  • *
  • Posts: 6
    • View Profile
Re: Folio ending August 28th.
« Reply #3 on: August 26, 2020, 12:37:39 AM »
LC does have a secondary market.  It is for "institutions only".  They told me I'd have to form an LLC to go further.  I found this would cost me a lot of money.  State of CA has a fee to form an LLC and an annual tax, and I'd have to pay an accountant to make another tax return every year.  I figured a few thousand a year.  I did not proceed.

Interesting.  But the average Joe can't buy or sell notes on there - so it's just institutions trading?  I wonder if you'd still be able to find killer deals on terribly mis-priced notes.

Fred93

  • Hero Member
  • *****
  • Posts: 2245
    • View Profile
Re: Folio ending August 28th.
« Reply #4 on: August 26, 2020, 10:54:23 PM »
The Foliofn web site now says the ending date is 8/26, which business day has ended.  The API stopped working at 15:20PM PDT.

Foliofn is dead. 

Debt Free

  • Full Member
  • ***
  • Posts: 129
    • View Profile
    • Email
Re: Folio ending August 28th.
« Reply #5 on: August 27, 2020, 12:58:43 AM »
I think I was fortunate.  In the three short weeks we were given, I managed to liquidate everything besides hardship loans (~30), <120 days remaining (~30), and headed down the path towards default/charge off (~15).  Roughly $3,500 sold and $350 remaining.  Now time to transfer and combine the accounts into one which I currently hold $6,600 in (taxable).  I'll still work it there for awhile and see how things play out over the next year or so to see if LC makes any kind of comeback.  Otherwise, I'll just let it bleed out a slow painful death.

Current holdings of the account I am keeping open (before transfer of other accounts assets into it):

My Notes at-a-Glance  2582
Not Yet Issued                  0
Issued & Current          799
In Grace Period              11
Fully Paid                  1,455
Late 16 - 30 Days            6
Late 31 - 120 Days         15
Default                            1
Charged Off                  295
Cancelled & Cancelling      0

Any idea the policy on dormant taxable accounts with zero active notes and holding only charged off notes?

bkcarp00

  • Newbie
  • *
  • Posts: 14
    • View Profile
Re: Folio ending August 28th.
« Reply #6 on: August 27, 2020, 01:23:29 AM »
I don't think they care. I left my account dormant for 2-3 years before investing any new money.

AnilG

  • Hero Member
  • *****
  • Posts: 1123
    • View Profile
    • PeerCube
Re: Folio ending August 28th.
« Reply #7 on: August 27, 2020, 01:42:35 AM »
Is the institutional secondary market similar to Folio (listing loans, self service by institutions) or it is just someone at LC or 3rd party when approached by seller finds buyers? I recall few years ago there was a third party that was doing this with LC loans for institutions.

LC does have a secondary market.  It is for "institutions only".  They told me I'd have to form an LLC to go further.  I found this would cost me a lot of money.  State of CA has a fee to form an LLC and an annual tax, and I'd have to pay an accountant to make another tax return every year.  I figured a few thousand a year.  I did not proceed.
---
Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
PeerCube https://www.peercube.com

Fred93

  • Hero Member
  • *****
  • Posts: 2245
    • View Profile
Re: Folio ending August 28th.
« Reply #8 on: August 27, 2020, 01:47:11 PM »
Is the institutional secondary market similar to Folio (listing loans, self service by institutions) or it is just someone at LC or 3rd party when approached by seller finds buyers? I recall few years ago there was a third party that was doing this with LC loans for institutions.

It is fully automated API, bid/ask type thing.  I have only limited information, because the discussion stalled when I did not proceed to form an LLC as they requested.

They never were open about the reason for requiring an LLC.  I understand that it is appropriate if I were handling other people's money, but I'm only handling my own money, so it didn't make any legal sense for ME.  I figure there must be some regulations somewhere that make them feel safer if their customers are only LLCs, but they would never tell me what it was.  They just didn't want to say much about anything until I spent a bunch of money to become an LLC, which was a real turnoff.

Because they never did provide an explanation of their logic, I cannot validate that their reason is "real".  For all I know it may be imagined.

Suggest you call them and engage.  Maybe you'll get further than I did.

t_b_o_t

  • Newbie
  • *
  • Posts: 6
    • View Profile
Re: Folio ending August 28th.
« Reply #9 on: August 28, 2020, 12:24:24 PM »
Suggest you call them and engage.  Maybe you'll get further than I did.

I sent their support an email a few days ago and never heard back.  Do you happen to have a different contact there that was more responsive?  You can PM me if you don't want to post publicly.  I remember a long time ago (4-5 years ago), someone from LC would call to "check in" every 6 months or so and it would annoy me because I had nothing to ask of them.  Oh how I wish they would call me now.