Author Topic: Wierd goings on at LC  (Read 21824 times)

lascott

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Re: Wierd goings on at LC
« Reply #30 on: June 30, 2015, 09:44:01 AM »
Can someone explain to me what is going on.  From the previous posts, it looks like there is a surplus of loans available currently (over 4K notes).  However, now new loans being added during listing time is very small?  Is this correct?  I have a threshold that detects when new notes have been listed on the platform (15 notes more than previously listed new notes).  However, the system hasn't detected new notes recently.  I am assuming because the number of new notes being added are small being that most of them have already been listed?
Hang on one more day... thanks to Fred93 letting us know where they are going. I'm sure others who asked LC to see (W)hole note and review the downloads just are not as helpful ;)
After a few days of sending almost all loans to the fractional market, this morning they started sending almost all loans to the whole market. 

My guess: Whole loan buyers called them up and yelled, so they're tryin' to make it up to them.  Just a guess.

I predict normalcy starting Wednesday.
« Last Edit: June 30, 2015, 09:45:36 AM by lascott »
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BruiserB

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Re: Wierd goings on at LC
« Reply #31 on: June 30, 2015, 02:21:35 PM »
I wonder if they have some institution lined up to buy the remainder of all of these fractional loans that are sitting on the platform now that are only partially funded?  They flooded the fractional side last week, but most of the loans are only partially funded.  Are these going to end up not issuing because they aren't fully funded?

Lovinglifestyle

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Re: Wierd goings on at LC
« Reply #32 on: June 30, 2015, 02:28:23 PM »
I wonder too, because I see some are down to one more day left, and I have a few that are down to 5 days left and under 50% funded.
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lascott

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Re: Wierd goings on at LC
« Reply #33 on: June 30, 2015, 02:45:14 PM »
I wonder if they have some institution lined up to buy the remainder of all of these fractional loans that are sitting on the platform now that are only partially funded?  They flooded the fractional side last week, but most of the loans are only partially funded.  Are these going to end up not issuing because they aren't fully funded?
Wonder what percentage don't normally get fund?  Borrower gets a rejection letter/email saying not enough people loved your stats.
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LendForFun

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Re: Wierd goings on at LC
« Reply #34 on: June 30, 2015, 08:36:47 PM »
I'm assuming/hoping that the complete lack of new notes is something that Lending Club is doing to shore up their books at the end of the quarter and that they'll release more notes tomorrow. 

We shall see.  I'm new to lending club this quarter, any insight from those who have been around for previous quarter ends?


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Re: Wierd goings on at LC
« Reply #35 on: June 30, 2015, 08:50:19 PM »
Usually, month starts are higher than usual volume for about a week. However, during quarter-end, you see volume spikes for 2-3 weeks prior to the end of the quarter at 2-3x normal volume. What is happening now is highly unusual, as they typically push hard to find a large number of borrowers and at the same time their systems broke.
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BruiserB

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Re: Wierd goings on at LC
« Reply #36 on: June 30, 2015, 09:50:30 PM »
I wonder if they have some institution lined up to buy the remainder of all of these fractional loans that are sitting on the platform now that are only partially funded?  They flooded the fractional side last week, but most of the loans are only partially funded.  Are these going to end up not issuing because they aren't fully funded?
Wonder what percentage don't normally get fund?  Borrower gets a rejection letter/email saying not enough people loved your stats.

If you go to Browse Loans now and sort by "Time Left" you can see that there are several loans that will time out in 1 day that are only partially funded.  Only recently I sorted this way and I think there were no notes that had fewer than 9 days or so....meaning all notes were funding within the first 5 days of being on the platform.  Hopefully there's an angel institution out there that's going to scoop these up.  Currently about 25% of my Not Yet Issued notes are still In Funding.

BBingo

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Wierd goings on at LC
« Reply #37 on: June 30, 2015, 10:34:18 PM »


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.

I think you are on to something. Today, I was meeting with a Manager at a Fund of Funds and he expressed similar sentiment about LC deals with community banks. Community Banks don't want to have unsecured consumer loans on their balance sheet but may want to hold on to a small pie of loans sourced through them. This most likely can be made possible by releasing community bank sourced loans to fractional market and then community banks buying a smaller piece of such loans as notes.

The phenomenon of releasing several hundred new loans at each release time appears to have started Monday and seems to be reaching end as much smaller volume of new loans were released at 6pm tonight. Once dust settles, I plan to look into loans released this week to see if anything stands out about these loans.

That would be a cute way to diversify your portfolio lending section of your small bank's holdings without growing it bigger than you'd want to. Plus, you wouldn't have to turn as many folks away, and turning folks away empty handed is something to be avoided in just about every business, even banking.


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lascott

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Re: Wierd goings on at LC
« Reply #38 on: June 30, 2015, 11:18:41 PM »
I wonder if they have some institution lined up to buy the remainder of all of these fractional loans that are sitting on the platform now that are only partially funded?  They flooded the fractional side last week, but most of the loans are only partially funded.  Are these going to end up not issuing because they aren't fully funded?
Wonder what percentage don't normally get fund?  Borrower gets a rejection letter/email saying not enough people loved your stats.

If you go to Browse Loans now and sort by "Time Left" you can see that there are several loans that will time out in 1 day that are only partially funded.  Only recently I sorted this way and I think there were no notes that had fewer than 9 days or so....meaning all notes were funding within the first 5 days of being on the platform.  Hopefully there's an angel institution out there that's going to scoop these up.  Currently about 25% of my Not Yet Issued notes are still In Funding.
Since this breakage is unprecedented there is always the chance they could extend the time for loans.  They have to have a *ton* of communication (calls/emails) from borrowers wondering why it is taking so long to get their loan ... as likely they are unofficially told it is likely less than a week.
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lascott

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Re: Wierd goings on at LC
« Reply #39 on: July 01, 2015, 01:29:31 AM »
BlueVestment -- 11 months (emailed about August's demise)

http://i.imgur.com/8MghpAl.png
« Last Edit: July 01, 2015, 01:32:54 AM by lascott »
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BruiserB

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Wierd goings on at LC
« Reply #40 on: July 01, 2015, 08:19:35 AM »
This morning there are only around 2500 loans on the platform.....so something like 2000 got filled up yesterday.  Interesting times.


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jheizer

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Re: Wierd goings on at LC
« Reply #41 on: July 01, 2015, 08:57:38 AM »
Damn it.  I log all the available grade count continuously but I left the stupid file open so it wasn't able to log over night/yesterday.  If someone else does similar I'd be curious to hear if a whole ton disappear at the same time or what.
« Last Edit: July 01, 2015, 09:04:35 AM by jheizer »
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investforfreedom

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Re: Wierd goings on at LC
« Reply #42 on: July 01, 2015, 09:02:48 AM »
It's just a hunch.

LC might be holding off releasing new loans because there are far too many leftovers that need to be filled.  Everybody is gunning for the best loans with their automated systems.  It's certainly good for us when there is an abundance of loans to choose from, but it's not going to work for LC if only the best loans get filled. 

goducks

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Re: Wierd goings on at LC
« Reply #43 on: July 01, 2015, 09:36:04 AM »
Yes, and my automated investing is not working and has not been working for 5 days. When I search outstanding loans there are hundreds that meet my criteria, but none are being allocated to me.

I called LC they said "well you can do manual investing"...uh, that's not the point, what is going on? And also notice no loans are being issued in my account as well.

Anyone have any answers?

lascott

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Re: Wierd goings on at LC
« Reply #44 on: July 01, 2015, 10:06:54 AM »
Yes, and my automated investing is not working and has not been working for 5 days. When I search outstanding loans there are hundreds that meet my criteria, but none are being allocated to me.
I called LC they said "well you can do manual investing"...uh, that's not the point, what is going on? And also notice no loans are being issued in my account as well.
Anyone have any answers?
Are you saying you are using Lending Club's own "Automated Investing" and not a 3rd party tool? Just an added clarity because you may be the first one using it that has spoken up here.

Also see http://www.lendacademy.com/forum/index.php?topic=3286.0
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