Author Topic: LC Eliminating 41 credit data fields from note download... goodbye modeling  (Read 20192 times)

thezfunk

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Re: LC Eliminating 41 credit data fields from note download... goodbye modeling
« Reply #45 on: November 10, 2014, 11:19:40 AM »
Posted on the main site but will probably get more interesting responses here:

As I've mentioned in another context, most 3rd party sites--which make up the so-called "ecosystem"--are just derivatives on something LC created. As an average non-accredited retail investor, I view the ecosystem as mostly adding a layer of fees to provide services of questionable value (speed, extra filtering, etc) that in some cases attempts to advantage certain investors at the expense of the rest. My bet is that the vast majority will fail to outperform a simple filter or investment approach, which has been shown again and again in all types of markets.

I know this opinion will annoy many users, especially the active crowd on this site or those who profit from LC's product, but personally Iím not sure why LC owes derivative businesses anything. I'm for any move that helps LC ensure a level playing field for retail investors, and as Peter said this change mostly impacts very large investors (and those that service them). Is the negativity here really about transparency? Or is it just about money and the fear that a derivative player won't be able to grab a slice of the pie?

No offense intended and just one guy's opinion!

There is demand for those services only because Lending Club does not provide features that some users want.

For example, Nickel Steam Roller let's users slice and dice data that comes entirely from Lending Club or Prosper.  Lending Club doesn't provide any way to slice and dice it but there are people who want that ability.  So the market created it.

If Lending Club were to offer that directly on their site there would be no need for a 3rd party tool that does it (assuming it was done as well with as many features).

Instead of taking away features on their site to level the playing field, they should be adding features to the site to level the playing field.

Exactly.  Supply and demand, right?  We, as (retail) investors (which are a lower subset of humanity, according to the platforms), demanded certain features.  Lending Club could have embraced our desires and provided all the desired information in ways that would have satisfied most people.  They didn't, for various reasons (some understandable, some not, more than likely).  So other people saw the opportunity to create a service that there was demand for.  The third party success should drive the point home even finer to Lending Club that they screwed up when it comes to satisfying the retail investors.  I don't know their reasoning for but that never has stopped me from speculating.

I still like how they (Lending Club) claim that there are no 'better' loans in a group; all 'C' or 'D' loans are the same, for example  That is completely and demonstrably, false.  Everyone on this forum can point to how bogus that assertion is with their filters and returns.  It indirectly proves that their underwriting process is not as good as it could be.  I don't think they like that.  I don't think they want to give people the data to show and prove their flaws.

What Lending Club has been doing the last month or two can only be construed as war on the motley crew of investors that frequent this forum.  Between changes like what is discussed in this thread and the requirements and restrictions put into place against the 3rd party service providers that have been discussed here as well (that thread went dead quiet for some reason with no public resolution that I have seen) and the sudden changes in policy with little to no notification amount to making this is as hard and difficult as possible for us with hopes of driving most of us away or forcing us into their box.  They want everyone to either be an institutional investor or a retail investor that is happy getting fed whatever LC Advisors wants to feed them.  They don't want crappy loans sitting unfilled on their platform.  They want them all filled as quickly as possible with as little fuss as possible.

It's just another aspect of the war on the middle class, in my opinion.  Here is a way for some smart and savvy investors to educate themselves and turn a profit.  Wall Street just can't abide by that.  These opportunities need to be stomped out and crushed before they spread.  I don't quite believe LC is evil to that extent but it seems to be a systemic problem.  Institutional money is here and they want all the crumbs.  To them, we are here to extract money from and to absorb their losses.  LC isn't exclusive here; Prosper and their what, 9% of loans going to retail(?) don't help either.

Lovinglifestyle

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Re: LC Eliminating 41 credit data fields from note download... goodbye modeling
« Reply #46 on: November 10, 2014, 11:53:52 AM »
Personally, I'm just about fed up.  Lending Club won't even let us "slice and dice" (turing) our own portfolios on their own website. 
Nor will they make it easy to see how much money was invested in a portfolio, where it went (notes sold?), how much is left, and where it is now (sort and access by status). 

No improvement in that problem over several years is nearly enough for me, without losing a couple of favorite data points (which I've been having to track down on third party sites), not being able to find notes I want, etc.  Meanwhile, my "cash drag" has grown to 11% and I might put it back where it came from.


GS

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Re: LC Eliminating 41 credit data fields from note download... goodbye modeling
« Reply #47 on: November 10, 2014, 03:54:38 PM »
Quote
What Lending Club has been doing the last month or two can only be construed as war on the motley crew of investors that frequent this forum.

While I want to agree, I've also seen LC do some very helpful things recently.

Good things (off the top of my head):

-It wasn't that long ago that you log in and find <100 notes on the platform, as they were all being gobbled up in a matter of minutes by the institutions.  Now, LC has apparently put governors in place to control the amounts of money and speed at which notes can be gobbled up, and we can usually find 1000+ notes on the platform.   

-While I'm an automatic investor through services like PLS and IR, I actually support that they have apparently put in a ~60 second delay before the computers can start buying (without screen scraping).  These two are clearly moves to keep the "little guy" in the game.

-They also eliminated the situation where you can lose money if the loan is paid off quickly.

On the bad side, it's well documented:

-Removing several fields for data modeling
-Taking some interest off the front end of the note to give to the originating bank
-Charging investors an 18% "fine" if the borrower is late
-Keep changing the website and API to "break" third parties
-Cutting off IRA members from Folio, with still no explanation as to why ...
-Etc ...


« Last Edit: November 10, 2014, 03:56:29 PM by GS »

Lovinglifestyle

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Re: LC Eliminating 41 credit data fields from note download... goodbye modeling
« Reply #48 on: November 10, 2014, 04:43:07 PM »
Quote
What Lending Club has been doing the last month or two can only be construed as war on the motley crew of investors that frequent this forum.

While I want to agree, I've also seen LC do some very helpful things recently.

Good things (off the top of my head):

-It wasn't that long ago that you log in and find <100 notes on the platform, as they were all being gobbled up in a matter of minutes by the institutions.  Now, LC has apparently put governors in place to control the amounts of money and speed at which notes can be gobbled up, and we can usually find 1000+ notes on the platform.   

-While I'm an automatic investor through services like PLS and IR, I actually support that they have apparently put in a ~60 second delay before the computers can start buying (without screen scraping).  These two are clearly moves to keep the "little guy" in the game.


1.8% of the currently available notes are EFGs.  Not a lot of selection there for anybody wanting that risk range.

GS

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Re: LC Eliminating 41 credit data fields from note download... goodbye modeling
« Reply #49 on: November 10, 2014, 05:04:21 PM »
Yeah, that is true, but on Interest Radar, there are usually a few that pass my filters left on there.  Enough to keep me fully invested, anyway.  But I were putting in new money, it would take a long time to get fully invested at that pace. 

hoggy1

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Re: LC Eliminating 41 credit data fields from note download... goodbye modeling
« Reply #50 on: November 10, 2014, 05:16:20 PM »
1.8% of the currently available notes are EFGs.  Not a lot of selection there for anybody wanting that risk range.

I've been lamenting the same but just bought 3 DEFs (1 each) at 2:00 PST feeding. No idea why they come and go but they do seem to group together. I don't often buy Gs. Most score poorly in my scoring system.
Steve

Lovinglifestyle

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Re: LC Eliminating 41 credit data fields from note download... goodbye modeling
« Reply #51 on: November 10, 2014, 06:23:00 PM »
I too just found some at 3:00 (2:00).  Couldn't believe there were 8 in my LC filter!  I picked 4 Es of the 8 total efg mix.  That was nice!

PhilGD

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Per their announcement on the site today, the following is happening ~ Dec 10th:

We are standardizing data fields to be consistent across the Lending Club platform. As a result, some date and credit attribute fields that are not available in certain sections of the site, such as the filters on the Browse Note page, will be removed from other areas of the site.
 
Removed Date Fields:
[...]
 
Removed Credit Attribute Fields:
[...]


I saw some good news today: It looks like the date for these changes has now been modified to "as early as August 15" whereas previously it was June 15th, and before that, December 10th.

http://kb.lendingclub.com/siteupdates/articles/Site_Updates/Recent-and-upcoming-changes-to-the-downloadable-data-files-and-API-services/?l=en_US&fs=Search&pn=1

I wonder if they're having trouble implementing changes on the back-end?

As far as I'm concerned this is very good news... I was worried I'd have to rebuild my model before the beginning of next week.