Worst Month Yet

[Joleran]

EV?? Sorry, what's that?

Expected value, effectively I meant expected final return rate for an average portfolio.

[Rob L]

Okay, thanks.

[ruthjoec]

I started investing in 2014 and added most of my money in the first quarter of 2015.  I haven't added anything since then, but have reinvested, mostly in C,D, E notes.  I invest in both new and resale notes.  I have over 1000 notes bought new and an average weighted interest rate of 16.45%.  The average age is 17.9 mos and my blue dot is near the top of the crowd--I don't stand out from the crowd, but I'm near the top of it.  My adjusted ANR is 6.37% and my non-adjusted is 8.97.  That being said, I've noticed a definite increase in bad loans the past few months.  My adjustment is higher than it has ever been.  However, according to the press, that is not unusual, in fact LC has raised its rates twice in the last few months because losses have exceeded expectations.

[investor88]

[/quote]
OK, I will bite. What other investments are you looking at?
[/quote]



I am just referring to normal traditional investments like stocks and bonds.  If looking for more diversification, you can add high yielding utility stocks or REITs, or high-yield bonds or foreign bonds, but I don't think LC loans are needed in any investor's portfolio.  If LC investments had realized the 10% return that they were projecting a few years ago it would be a good investment.  But many LC's investors portfolios are now earning less than 0%.  And LC is now projecting 5% for current investments but the reality will be much worse.  Long Term Treasuries and Government agency bonds are now paying 3-4%.  Why bother with the extra trouble and risk to invest in LC loans.

[dbailey75]

Here' an interesting charge off, Loan id: 65108282, customer last paid in August, but looking at the call log, LC barely even attempted to collect, I can only assume this was a C&D, but they didn't list it in the call log.  I have another loan similar to this one with limited details in the call log before getting charging it.

And yes, this is one of those where the borrow says, the checks will be mailed and to never be heard from again.

This was not my worst month, still interest positive for now, this tread seemed like the best place post this. 

[dbailey75]

here's another one, failed payment 12/7, nothing else listed in a call log. Has something changed with LC's call logging or collections process?  Anyone else seeing similar?

Loan id Loan id: 64008463

[jennrod12]

here's another one, failed payment 12/7, nothing else listed in a call log. Has something changed with LC's call logging or collections process?

I can only guess that they are getting more delinquencies than they have time/staff to follow up on! 

Jenn

[Rob L]

here's another one, failed payment 12/7, nothing else listed in a call log. Has something changed with LC's call logging or collections process?

I can only guess that they are getting more delinquencies than they have time/staff to follow up on! 

Jenn

From LC's most recent 8-k (Jan 18, 2017):

"As you may recall, 2016 changes included higher interest rates (a weighted average increase of approximately 118 basis points in total from November 2015 to October 2016) as well as credit policy tightening designed to remove borrower populations with an increased propensity to accumulate debt. We also invested in additional tools to drive collections effectiveness."

Does make you wonder what's going on.

[dbailey75]

here's another one, failed payment 12/7, nothing else listed in a call log. Has something changed with LC's call logging or collections process?

I can only guess that they are getting more delinquencies than they have time/staff to follow up on! 

Jenn

If that's the case, we are in some serious trouble.   

[rawraw]

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

[jz451]

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

[rawraw]

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)

[SeanMCA]

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. 

[jheizer]

Oh man!  I just got slammed.

[rubicon]

Jan was one of my worst months ever!