Author Topic: P2P Lenders  (Read 1868 times)

rstrade

  • Newbie
  • *
  • Posts: 2
    • View Profile
P2P Lenders
« on: November 09, 2016, 05:34:32 PM »
Hello everyone!

I'm a student conducting research on the P2P market and would really appreciate the thoughts of this community:

Investing:
1) What are the best P2P paltforms for investing funds (I guess Lending Club and Prosper:D)?
2) Are there any mobile platforms available?
3) How does it actually work? Does the P2P company issue the loan and then sell it as an asset-backed security to the investor or the borrower receives funds only after the investors have accumulated enough funds?

Borrowing:
1) What methods of credit scoring is used by P2P companies to evaluate borrowers?
2) Which regions have the highest demand for non-bank loans?
3) What are the biggest obstacles for P2P company expansion?

I really appreciate your input!

fliphusker

  • Sr. Member
  • ****
  • Posts: 463
    • View Profile
    • Email
Re: P2P Lenders
« Reply #1 on: November 10, 2016, 12:09:54 PM »
1 LC and Prosper are the biggest but there are quite a few more.
2 I assume you mean apps for Android and IOS.  LendingClub Automatique is the only one I use but it is a basic app and I can not invest through it.  Dunno about others.
3 LC, for the most part, acquires loans and then sells them off.  They can be sold off fully to lets say hedge funds or banks or broken up into pieces on the retail side for a min of $25.  (We here are retailers.)  These loans are not secured.  While a borrower may be approved they still have to wait for their loan to be funded.

Borrowing
1 LC and Prosper use their own secret sauce to evaluate borrowers and how to assign a loan grade to them which determines their APR.
2 Here is the backtesting by states over the lifetime of LC and the amount of principle by state.

AK   $47,584,500.00   
      
AL   $205,321,500.00   
AR   $118,529,625.00   
AZ   $371,420,125.00   
CA   $2,381,120,750.00   
CO   $350,937,700.00   
CT   $258,351,350.00   
DC   $44,626,375.00   
DE   $46,383,500.00   
FL   $1,086,367,700.00   
GA   $553,124,000.00   
HI   $86,665,625.00   
IA   $112,800.00   
ID   $9,916,200.00   
IL   $686,934,525.00   
IN   $262,838,725.00   
KS   $145,571,800.00   
KY   $154,921,250.00   
LA   $197,684,500.00   
MA   $404,969,000.00   
MD   $408,777,575.00   
ME   $20,671,325.00   
MI   $414,213,200.00   
MN   $289,381,725.00   
MO   $260,849,575.00   
MS   $79,442,625.00   
MT   $44,781,275.00   
NC   $461,983,950.00   
ND   $17,096,950.00   
NE   $33,225,900.00   
NH   $80,761,625.00   
NJ   $649,120,550.00   
NM   $92,970,725.00   
NV   $219,523,975.00   
NY   $1,357,315,850.00   
OH   $539,685,675.00   
OK   $153,868,200.00   
OR   $185,857,200.00   
PA   $568,585,500.00   
RI   $68,408,100.00   
SC   $202,084,000.00   
SD   $32,424,050.00   
TN   $249,754,925.00   
TX   $1,418,301,350.00   
UT   $115,040,250.00   
VA   $516,024,075.00   
VT   $32,543,800.00   
WA   $361,486,825.00   
WI   $211,008,375.00   
WV   $75,265,975.00   
WY   $39,240,175.00   

3 Biggest obstacles? 
http://www.lendingmemo.com/peer-lending-problems/
For me, before I came here I had no idea what LC was/did.  It is a steep learning curve on how it works and what mistakes not to make. 
For LC, the ousting of their CEO shook the confidence in its investor base and is still trying to rebound from it.  Quick Google search will net you many more issues.

rstrade

  • Newbie
  • *
  • Posts: 2
    • View Profile
Re: P2P Lenders
« Reply #2 on: November 10, 2016, 01:46:10 PM »
Big thanks!

I have another question, why some P2P investment sites do not disclose what type of loan (for what purposes) they have originated? Where as in some sites you can almost get the whole borrower profile.