Where are these loans suddenly coming from???
There has been no statement from LC about this, so we don't know.
For the last few days, LC has been dumping a much larger than normal # of loans each feeding time, and has been allocating 90% to 100% of them to the fractional loan market. (Instead of the normal 30% to 50%)
My guess is that these loans come from some new source, which has suddenly been turned on. Perhaps it is one of the many collaborations they've been issuing press releases about for the last year.
I've heard no good theory on why the loans are suddenly all going to the fractional platform, so I made up my own. My theory is that this new source (perhaps someone highly regulated, like a bank) has some legal or regulatory detail which doesn't allow the loans to be "sold" by LC. Remember, loans on the full-loan market are sold, whereas loans on the fractional market are turned into notes which are sold to us. I couldn't think of a reason for suddenly allocating almost all loans to the fractional market unless they were forced to do so, so I thought up a theory which would force them to do so.