Author Topic: Lending Club to Offer Super Prime Loans!  (Read 15415 times)

DanB

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Re: Lending Club to Offer Super Prime Loans!
« Reply #15 on: November 21, 2014, 06:40:00 PM »
Core...........It's not really LC that doesn't allow loans to residents of your "important state". It's more like your important state doesn't allow LC to offer loans there or makes the process tedious &/or expensive enough to LC that it's not worth the hassle given the tiny population involved. If I remember correctly only 4 states other than yours don't allow borrowers. Idaho, N. Dakota, Nebraska, & Maine.
So, including your important state that's maybe what, 7-8 million people total..........or not more than 2.5% of the US population.


core

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Re: Lending Club to Offer Super Prime Loans!
« Reply #16 on: November 21, 2014, 06:49:51 PM »
Or maybe Dan it's that a few attorneys general have noticed irregularities with the way that Lending Club conducts its affairs and that's why they aren't allowed to do business in those states.  Did you think of that?

I thought the Marquette decision was supposed to eliminate much of the fuss in lending to residents of other states.  If there's something in the laws of the 5 states mentioned that makes it too expensive for LC to conduct business there, even after LC's outrageous origination fees, I would sure like to know what it is.  No, my money is on shenanigans.  The bright folks in my important state have run them right out of here, that's what happened.

DanB

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Re: Lending Club to Offer Super Prime Loans!
« Reply #17 on: November 21, 2014, 07:47:56 PM »
Or maybe Dan it's that a few attorneys general have noticed irregularities with the way that Lending Club conducts its affairs and that's why they aren't allowed to do business in those states.  Did you think of that?

I thought the Marquette decision was supposed to eliminate much of the fuss in lending to residents of other states.  If there's something in the laws of the 5 states mentioned that makes it too expensive for LC to conduct business there, even after LC's outrageous origination fees, I would sure like to know what it is. No, my money is on shenanigans.  The bright folks in my important state have run them right out of here, that's what happened.

No I didn't, but hey that's pretty funny.
But I suppose some of your explanations are plausible, if we are to believe in the existence of bright folks in your important state. Please don't get me wrong. I'm happy to take your word as to their existence, but just out of curiosity, are these "bright folks" you're referring to the same bright folks who devote their leadership & intelligence to candidate vetting every 4 years in your important state?? 

core

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Re: Lending Club to Offer Super Prime Loans!
« Reply #18 on: November 21, 2014, 08:01:51 PM »
Dan I didn't respond the last time you brought that up and I have no defense this time around either.  I have no control over voters in the rest of the state, I cannot explain it.  But you will note that we did our part to take back the senate just recently.  And hey we brought you the Howard Dean scream.  Surely the entertainment value of that makes up for a few subsequent mistakes. 

And the great Reagan got his start in radio right here.  Where would the world be now if Reagan had never gotten his chance to step in front of a microphone?  The commies might have won the cold war.  You just ponder that for a while.

But this is all rather off topic of course.  I want to see if I qualify for one of these super prime loans and I'm extremely pissed off that I can't even use the soft pull tool to find out.  If Lending Club operated on the level like every other lender that does business here (all of them except Barclay's), maybe they wouldn't be in this position.  I don't know what Barclay's did but it must have been very naughty.  I want several of their cards too.

I think I will change the billing address on one of my cards just long enough to get my state changed with TransUnion and see if they let me in.

core

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Re: Lending Club to Offer Super Prime Loans!
« Reply #19 on: November 22, 2014, 03:09:56 AM »
I forgot that I already had several fake addresses on my Transunion report from different states.  It worked.  My Lending Club rate was a joke.

With a TU 08 FICO of 776 and no debt whatsoever, 15 year oldest account and 2 inqs, they think I'm only worthy of an 11% rate.  14+% after the origination fees.  That's a long ways from 6%.  Tough crowd!  Obviously I will not see 3.99% from them in my lifetime.  Even so, I'm curious about the effect of those inquiries so I'll bump them off and try again in 56 days just to see.

Who signs up for rates like these, when usually a 760 FICO is good enough for the most favorable terms anywhere else?

One thing I found interesting:  The rates for different dollar amounts was like so, from memory:
$1000 11%
$2000 11%
$3000 11%
$4000 12.49%
$5000 11.99%

Why such a jump for $4k, but then $5k is lower?  Very odd.
« Last Edit: November 22, 2014, 03:13:04 AM by core »

rawraw

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Re: Lending Club to Offer Super Prime Loans!
« Reply #20 on: November 22, 2014, 07:47:16 AM »
^Unsecured loan even at 10% is pretty good, but it isn't great.  Last I checked, I qualified for A1

BBingo

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Lending Club to Offer Super Prime Loans!
« Reply #21 on: November 22, 2014, 09:49:44 AM »
I wonder if the super prime rate is simply being "offered" to make advertising more attractive. Someone might look at 6% and say meh, I'm not going to bother even going to the site, whereas at 3% they might at least look, and a few might get roped in even though they don't qualify.


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Randawl

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Re: Lending Club to Offer Super Prime Loans!
« Reply #22 on: November 23, 2014, 11:58:50 AM »
I wonder if the super prime rate is simply being "offered" to make advertising more attractive. Someone might look at 6% and say meh, I'm not going to bother even going to the site, whereas at 3% they might at least look, and a few might get roped in even though they don't qualify.


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Good thought, I think that's probably a part of it, too.

There's one thing few can deny LC's good at; and that's marketing.

core

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Re: Lending Club to Offer Super Prime Loans!
« Reply #23 on: November 24, 2014, 06:14:29 PM »
Ever since using the 'Check my Rate' page as described above, I am finding out that Lending Club puts a LOT of effort into snaring borrowers.  Even for a very very small loan.  I have been receiving a series of personal emails from some woman over there.

Then she calls me.  This woman is redefining the term high pressure sales.  (I think she will make a very nice commission this year!)  Even after I immediately told her that my rate sucks and they can go pound sand, she spent 10 minutes on the phone with me telling me how good the rate was.  If I didn't take the loan NOW, the rate might disappear because rates change "every day".  "Wow, every day?" I asked.  "Yes."  She then went on to tell me a scary story about how a borrower needed a loan, took some time to think on it, and then by the time they made up their mind the loan was not available at that rate.  I was really in awe.  Like I said, this woman will do very well in her career.

But when you think of all the time they are spending on each and every person who is just casually shopping rates, this is staggering.  All of that time & money for a lousy $100 origination fee or whatever it would have been.  Or maybe they haven't been hitting things so hard until just recently?  Numbers might be lousy this month? 

bobeubanks

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Re: Lending Club to Offer Super Prime Loans!
« Reply #24 on: November 24, 2014, 06:17:48 PM »
Did you ask her to check with Stephanie for any special rates?

BBingo

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Lending Club to Offer Super Prime Loans!
« Reply #25 on: November 24, 2014, 08:23:53 PM »

Ever since using the 'Check my Rate' page as described above, I am finding out that Lending Club puts a LOT of effort into snaring borrowers.  Even for a very very small loan.  I have been receiving a series of personal emails from some woman over there.

Then she calls me.  This woman is redefining the term high pressure sales.  (I think she will make a very nice commission this year!)  Even after I immediately told her that my rate sucks and they can go pound sand, she spent 10 minutes on the phone with me telling me how good the rate was.  If I didn't take the loan NOW, the rate might disappear because rates change "every day".  "Wow, every day?" I asked.  "Yes."  She then went on to tell me a scary story about how a borrower needed a loan, took some time to think on it, and then by the time they made up their mind the loan was not available at that rate.  I was really in awe.  Like I said, this woman will do very well in her career.

But when you think of all the time they are spending on each and every person who is just casually shopping rates, this is staggering.  All of that time & money for a lousy $100 origination fee or whatever it would have been.  Or maybe they haven't been hitting things so hard until just recently?  Numbers might be lousy this month?

I mean, they're paying that lady minimum wage, so one $100 origination fee per 3-4 hours of work is a profit for them, even with some added expense in for whomever they contract the pushing out to.


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core

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Re: Lending Club to Offer Super Prime Loans!
« Reply #26 on: November 24, 2014, 08:47:38 PM »
I mean, they're paying that lady minimum wage

I think not.  Federal minimum wage is about $15k annually.  According to DanB, no employees at Lending Club are making 30k or less:

There's no one at LC making $30k a year, ok.

And he should know.   Because... ah nevermind.  He just does.

Fred93

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Re: Lending Club to Offer Super Prime Loans!
« Reply #27 on: November 24, 2014, 09:10:52 PM »
LC has lenders to spare, so their ability to grow is limited by borrowers.  Therefore sourcing a steady flow of borrowers is part of their magic sauce.  As I've never worked in the lending industry, I have no idea what this looks like inside, but it isn't a surprise that they have people who follow up and "work" the prospect after he shows interest at a web site.

I was talking with some folks from another P2P company that does small business loans.  They have a bunch of people who talk with prospective borrowers on the phone.  Those products are more complex, and the borrowers come already confused by even more complex products (factoring etc) that other companies have pitched to them.  They also said about half their borrowers came thru brokers, which was a bit of a surprise.

It would be interesting to know how LC's sourcing of borrowers works, but I'm sure they consider it among their most closely held secrets. 

Core has exposed one little piece of the innards.

Here's another:  On page 101 of the latest S1 filing, they list the things that affect borrower's loan grade. 

Loan Term
FICO Score
Revolving Balance
Public Records
Average Bankcard Line
Referral Source         <-------------------
Number of Installment Loans
Average Non-Mortgage Balance
Loan Amount
Number of Open Trade Lines
Number of Inquiries
Number and Term of Delinquencies

So now you know that there are things that go into the loan grade that are not made available to lenders.  I suppose it makes sense to include the referral source in the calculation.   LC has the stats.  There is probably a big variation in quality of referrals from different sources.  I just thought this mention in the S1 was interesting, because its a rare glimpse inside.

DanB

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Re: Lending Club to Offer Super Prime Loans!
« Reply #28 on: November 24, 2014, 10:26:01 PM »
I mean, they're paying that lady minimum wage

I think not.  Federal minimum wage is about $15k annually.  According to DanB, no employees at Lending Club are making 30k or less:

There's no one at LC making $30k a year, ok.

And he should know.   Because... ah nevermind.  He just does.

Core...............The above quote was in reference to a  conversation about LC in SF.  So let's see how I could have possibly  come up with that $30k statement without any conspiracy theories at work. Well for starters it's no secret that the $15k Federal Minimum wage has zero relevance to SF.  Minimum wage full time in SF works out to around $24.5k a year. So yeah clearly there was no possible way that I could make the outrageous claim that LC could possibly pay a few grand more than minimum wage without some connection to the company. 

So hypothetically 6-7 months from now if you were to wake up one morning & realize that prolonged exposure to industrial strength farm chemicals has somehow erased all your computer knowledge & skills, you need not fear. Hop on a bus to SF & if you can somehow (given your severely reduced mental state) convince McDonalds to hire you full time, they'd have to pay you minimum wage which by then will be over $25.5k. Wait, it gets even better. If you can somehow keep your primitive geopolitical world views to yourself & hold on to that entry level job for 3 years more..............even without promotion & you'll be making over $31k a year.
« Last Edit: November 24, 2014, 10:29:57 PM by DanB »

Fred

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Re: Lending Club to Offer Super Prime Loans!
« Reply #29 on: November 24, 2014, 11:05:34 PM »
Ever since using the 'Check my Rate' page as described above, I am finding out that Lending Club puts a LOT of effort into snaring borrowers.  Even for a very very small loan.  I have been receiving a series of personal emails from some woman over there.