Author Topic: Worst Month Yet  (Read 194283 times)

newstreet

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Re: Worst Month Yet
« Reply #405 on: February 03, 2017, 12:16:51 PM »
Oh man!  I just got slammed.



WOW.....ya think they pushed bad debt to January to avoid reporting in year end numbers.  Come on.....how insanely obvious is this.  Analysts should be all over January defauts on the call.

newstreet

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Re: Worst Month Yet
« Reply #406 on: February 03, 2017, 12:21:00 PM »
Another monthly statement, another loss.

I was down in July, up in August, down in September, up in October, down in November, up in December, and now down in January. Basically breakeven over the last 7 months.

Early payoffs have been devastating.

Can you check to see if your early payoff was a refinance by LC.  They would get fees on both sides and juice "originations".  I know I'm right about this. Nuts.

dbailey75

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Re: Worst Month Yet
« Reply #407 on: February 03, 2017, 12:24:57 PM »
If they are forgetting to log when they contact the borrower, then that is a bigger problem altogether, and a failure of internal controls and compliance on LC's part. I've had several notes I've had to sell because the notes go into grace period and there is no log of contact from the time the payment is due to the supposed settlement date and after that date.  At some point I am going to call customer service to see what is up about that, because from this and logs with multiple calls but no message left is simply frustrating. When I worked at Springleaf, now OneMain, from last June to September all late borrowers got left a message if they didn't answer the phone.
It isn't uncommon in consumer lending to use models to determine which customers should be contacted first. LendingClub may rely on this sort of model to focus collections on where it seems to make the most sense.  But over the years I think we've learned those logs are often inaccurate and miss events that occur.

Sent from my SAMSUNG-SM-G935A using Tapatalk
Core use to post about how bad the logs are. He was convinced there was a secret log. May be useful to find his posts (he was quite the character)

I don't think I'd call it a "secret log", but i'd be will to guess there's an official log that has more than just canned response's, I just like to see that something is being doing, canned responses are fine, If I knew the details of why deadbeats aren't paying, I'm might be inclined to go find them them, ;-) it's better we don't see/know the gritty details.

rawraw

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Re: Worst Month Yet
« Reply #408 on: February 03, 2017, 12:27:22 PM »
Another monthly statement, another loss.

I was down in July, up in August, down in September, up in October, down in November, up in December, and now down in January. Basically breakeven over the last 7 months.

Early payoffs have been devastating.

Can you check to see if your early payoff was a refinance by LC.  They would get fees on both sides and juice "originations".  I know I'm right about this. Nuts.
You can check it, by using borrower data to make inferences. Some people used statistical techniques to spot multiple loans to similar borrowers before. But it's not a field or easy to do

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SeanMCA

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Re: Worst Month Yet
« Reply #409 on: February 03, 2017, 01:03:23 PM »
Another monthly statement, another loss.

I was down in July, up in August, down in September, up in October, down in November, up in December, and now down in January. Basically breakeven over the last 7 months.

Early payoffs have been devastating.

Can you check to see if your early payoff was a refinance by LC.  They would get fees on both sides and juice "originations".  I know I'm right about this. Nuts.

no, there is no way to know how or why a loan was paid off. We're not allowed to know.
I'm a merchant cash advance veteran exploring the p2p lending waters.

SeanMCA

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Re: Worst Month Yet
« Reply #410 on: February 03, 2017, 01:21:28 PM »
It's hard to grasp that more than 30% of borrowers are paying off their loans early and we're not allowed to know why. I mean, hey we're just retail investors, what business is it of ours to know about the industry's strangest anomaly where we lose out on tons of interest, causing in my case to generate repeated negative monthly returns?

Oh and Lending Club charges the retail investor a 1% penalty on early payoffs on the outstanding principal for any loan older than 12 months. So we pay a fee but we're not allowed to know what's leading to these early payoffs.

Lending Club has no problem sending out solicitations to invest even more money though.
« Last Edit: February 03, 2017, 01:25:00 PM by SeanMCA »
I'm a merchant cash advance veteran exploring the p2p lending waters.

newstreet

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Re: Worst Month Yet
« Reply #411 on: February 03, 2017, 02:27:07 PM »
It's hard to grasp that more than 30% of borrowers are paying off their loans early and we're not allowed to know why. I mean, hey we're just retail investors, what business is it of ours to know about the industry's strangest anomaly where we lose out on tons of interest, causing in my case to generate repeated negative monthly returns?

Oh and Lending Club charges the retail investor a 1% penalty on early payoffs on the outstanding principal for any loan older than 12 months. So we pay a fee but we're not allowed to know what's leading to these early payoffs.

Lending Club has no problem sending out solicitations to invest even more money though.

LOL-It is so obvious that they are churning accounts.  This is baby stuff.  It's funny the MCA industry gets the bad wrap when these guys, led by their boards, (QED sound familiar) do this crap to show growth. Rather brazen after they were already nailed for fraud.  They must be very desperate.  There is massive demand for these assets. But I don't think Lending Club and Prosper being around in 24 months.  Sean-don't write about this before Lendit! Lending Club is the primary sponsor and wouldn't want you to lose your award! ;)

squarebob

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Re: Worst Month Yet
« Reply #412 on: February 03, 2017, 04:33:20 PM »
January was my first negative month since opening my LC account in 2010. More distressingly, I opened a 2nd account in 2014 and it was negative in January, too, despite normally being uncorrelated with my initial account. Something is rotten in Denmark, methinks.

storm

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Re: Worst Month Yet
« Reply #413 on: February 03, 2017, 05:21:17 PM »
It's hard to grasp that more than 30% of borrowers are paying off their loans early and we're not allowed to know why. I mean, hey we're just retail investors, what business is it of ours to know about the industry's strangest anomaly where we lose out on tons of interest, causing in my case to generate repeated negative monthly returns?

Oh and Lending Club charges the retail investor a 1% penalty on early payoffs on the outstanding principal for any loan older than 12 months. So we pay a fee but we're not allowed to know what's leading to these early payoffs.

Lending Club has no problem sending out solicitations to invest even more money though.

Have you ever taken out a loan?  Lenders don't usually ask why borrowers are paying off their loan early, and it is really none of their business.  Either the borrower came into some money, or the rate is not competitive.  It is that simple.

Fred93

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Re: Worst Month Yet
« Reply #414 on: February 03, 2017, 05:25:51 PM »
LOL-It is so obvious that they are churning accounts.  This is baby stuff.

Possible, but not obvious.  Where is your evidence?

Rob L

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Re: Worst Month Yet
« Reply #415 on: February 03, 2017, 06:30:55 PM »
Certainly not my worst month. For the first month in six I was in the black ($110.33; zowie).
Blue and read bars converging so maybe the effects of my Folio sales in the fall are behind me.



The bad news is that my delinquency rate is rising again. Future isn't lookin good ...


rawraw

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Re: Worst Month Yet
« Reply #416 on: February 03, 2017, 08:19:29 PM »
I made money again this month.  Second month of profitability after a dip due to credit.  But 65% of my portfolio is ABC grades.  Seems like my returns have stabilized

Also, prepayments occur in all consumer lending.  The existence of prepayments isn't alarming by itself.  but coupled with LC's revenue model, it is something to pay attention to.

.Ryan.

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Re: Worst Month Yet
« Reply #417 on: February 03, 2017, 09:17:01 PM »
Also, prepayments occur in all consumer lending.  The existence of prepayments isn't alarming by itself.  but coupled with LC's revenue model, it is something to pay attention to.

Totally concur rawraw. For me, its when yours (YOU) and your partners (LC) interests diverge, there is where you need to keep a keen eye on. And the rules have been set that prepayments benefit one of those at the direct cost of the other.

newstreet

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Re: Worst Month Yet
« Reply #418 on: February 03, 2017, 09:33:20 PM »
Also, prepayments occur in all consumer lending.  The existence of prepayments isn't alarming by itself.  but coupled with LC's revenue model, it is something to pay attention to.

Totally concur rawraw. For me, its when yours (YOU) and your partners (LC) interests diverge, there is where you need to keep a keen eye on. And the rules have been set that prepayments benefit one of those at the direct cost of the other.

Exactly----ya think institutional investos are paying the 1% prepayment fee?  lol

newstreet

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Re: Worst Month Yet
« Reply #419 on: February 03, 2017, 09:44:44 PM »
It's hard to grasp that more than 30% of borrowers are paying off their loans early and we're not allowed to know why. I mean, hey we're just retail investors, what business is it of ours to know about the industry's strangest anomaly where we lose out on tons of interest, causing in my case to generate repeated negative monthly returns?

Oh and Lending Club charges the retail investor a 1% penalty on early payoffs on the outstanding principal for any loan older than 12 months. So we pay a fee but we're not allowed to know what's leading to these early payoffs.

Lending Club has no problem sending out solicitations to invest even more money though.

 



Have you ever taken out a loan?  Lenders don't usually ask why borrowers are paying off their loan early, and it is really none of their business.  Either the borrower came into some money, or the rate is not competitive.  It is that simple.

Creditor's usually have a make whole provision in the event of prepayment.  Lending Club CHARGES the investor if there is a prepayment. Lending Club could refinance all their deals and get points on either side.  Prepayments substanital above industry standards.  The more prepayments-the greater revenue to LC-lower returns to investors.  That my friend, is the simple math.  Hilarious