If it isn't unusual that makes it all the stranger to me.
Can you put an approximate percentage on it without taking too much effort? TIA
LC publishes prepayment data on their web site by vintage, by month of prepayment.
Yes they sure do. Thanks for the tip.
For all vintages from 08Q1 through 14Q3 (almost 8 years!) loans fully paid with months on books (MOB=0) was 0%, nada, zip, cypher, ....
I don't mean there were zero occurrences, just 0% of originations per LC's numbers.
An then:
36 month term:
14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2
0.29% 0.47% 0.64% 0.70% 0.70% 0.97% 1.51%
60 month term:
14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2
0.25% 0.48% 0.61% 0.81% 0.75% 0.93% 1.38%
Now roughly 3 loans in every 200 are fully paid before the first payment comes due. Makes no sense to me.
Somebody want to try and explain this (or show me where I messed up the data)?
It isn't that unusual (maybe the 2 weeks is, most wait at least 4).
At least LendingClub changed the rules a while back so you don't actually lose money on these.
Yep. Thank goodness for that!