Author Topic: LC is looking more and more shady to me.  (Read 15175 times)

yojoakak

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Re: LC is looking more and more shady to me.
« Reply #30 on: December 31, 2014, 06:00:22 PM »

FICO trend is very material IMO where questions and logs are questionable at best.  I'd be surprised if they suspended it, but you never know

If they got rid of Foliofn then it wouldn't matter since you couldn't buy or sell it anyways.

rawraw

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Re: LC is looking more and more shady to me.
« Reply #31 on: December 31, 2014, 06:20:39 PM »

FICO trend is very material IMO where questions and logs are questionable at best.  I'd be surprised if they suspended it, but you never know

If they got rid of Foliofn then it wouldn't matter since you couldn't buy or sell it anyways.
No, it does matter.  A lot of institutional money has to account for the risk in their portfolio according to GAAP, which means recognizing expected loss for the next 12 months.  I'd bet FICO trend is a factor heavily used, as it is the best way to quantify changing risk profiles.  Being able to quantify your risk is invaluable, even if you can't sell the notes. 

Fee

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Re: LC is looking more and more shady to me.
« Reply #32 on: December 31, 2014, 06:48:01 PM »
I have learned more about LC's methods and owe it to them to post an update. Much of my confusion has been cleared up.

A borrower has the right to call in before a payment's due date and request to delay the payment date up to the very last day of the grace period. This can lead to a payment being 19 days late while still being in grace period due to the 4 day processing time. In this case the note will instantly go late the following day if the payment is not completed. The investor would never have had a chance to sell the note during the grace period since it was considered pending the entire time. A collection log entry will not be made until a payment fails. In this case, no entry would be made until the note was already late. This scenario also explains how a note with a later due date can go "Late", while one with an earlier due date is still in the grace period. I now understand this but don't like it.




rawraw

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Re: LC is looking more and more shady to me.
« Reply #33 on: December 31, 2014, 08:10:34 PM »
I have learned more about LC's methods and owe it to them to post an update. Much of my confusion has been cleared up.

A borrower has the right to call in before a payment's due date and request to delay the payment date up to the very last day of the grace period. This can lead to a payment being 19 days late while still being in grace period due to the 4 day processing time. In this case the note will instantly go late the following day if the payment is not completed. The investor would never have had a chance to sell the note during the grace period since it was considered pending the entire time. A collection log entry will not be made until a payment fails. In this case, no entry would be made until the note was already late. This scenario also explains how a note with a later due date can go "Late", while one with an earlier due date is still in the grace period. I now understand this but don't like it.
Are you still liquidating or will you be joining us along for the ride?

Fee

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Re: LC is looking more and more shady to me.
« Reply #34 on: December 31, 2014, 10:18:13 PM »
I have learned more about LC's methods and owe it to them to post an update. Much of my confusion has been cleared up.

A borrower has the right to call in before a payment's due date and request to delay the payment date up to the very last day of the grace period. This can lead to a payment being 19 days late while still being in grace period due to the 4 day processing time. In this case the note will instantly go late the following day if the payment is not completed. The investor would never have had a chance to sell the note during the grace period since it was considered pending the entire time. A collection log entry will not be made until a payment fails. In this case, no entry would be made until the note was already late. This scenario also explains how a note with a later due date can go "Late", while one with an earlier due date is still in the grace period. I now understand this but don't like it.
Are you still liquidating or will you be joining us along for the ride?

I'll think about it more next year.

Unfolder

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Re: LC is looking more and more shady to me.
« Reply #35 on: January 01, 2015, 11:35:40 AM »
Just curious why do people speculate folio would be removed in the future?

Fred93

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Re: LC is looking more and more shady to me.
« Reply #36 on: January 01, 2015, 03:29:12 PM »
Just curious why do people speculate folio would be removed in the future?

Trash talk.

Randawl

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Re: LC is looking more and more shady to me.
« Reply #37 on: January 01, 2015, 11:48:12 PM »
Just curious why do people speculate folio would be removed in the future?

Trash talk.

Yea, that bit was a tad tongue-in-cheek.      ;)
« Last Edit: January 01, 2015, 11:50:22 PM by Randawl »

turing

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Re: LC is looking more and more shady to me.
« Reply #38 on: January 06, 2015, 05:16:07 PM »
Lending Club has been sending me response emails asking for the very same information that I provided in my initial email to them. This is frustrating. I have multiple notes that have been in the grace period since 12/13 with no collection log entries made whatsoever. Are they contacting the borrower? It doesn't look like it but who knows.

I'll continue to document these issues as they arise. I doubt that I'm the only one seeing so many problems.

Regarding the "no collection log" issue.  I posted a bit about this and Lending Club's responses:
http://www.lendacademy.com/forum/index.php?topic=2910.0

Most common reason they claim is a borrower working out a payment plan or later payment date in advance.  Seems a bit strange to me though given the frequency of occurrences I see.