Author Topic: So now it seems the Folio Loans have finally started to dry up....  (Read 5960 times)

dr.everett

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So I've been gone for a week on work, no time to look at any of my LC stuff during that time. That's the whole reason I use automation to the level that I do.

So I'm back from work and there's 2 emails greeting me this morning from LC- one from each of my accounts. Large amounts of money available to be invested. Hmm- that's odd. Usually I get an email with a few hundred dollars left over from the previous day's buying, but not Thousands waiting.

Problem with Lending Robot? No- checked and it has been diligently buying notes that I like- there are just not as many that I want as there have been in the past.

I have a pretty extensive ruleset that is ranked from most desirable to least desirable- usually only half of it gets hit before my money is invested. Appears LR went through the whole ruleset which I've never seen before.

So here's my question- anyone else who buys in volume on Folio see similar behavior? Or have I finally become too unique in what I buy, and have bought all the purple unicorns that exist?  ;)

apc3161

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #1 on: March 26, 2017, 05:58:43 PM »
Don't make the mistake of lowering your lending standards. Just take your money elsewhere.

Fred93

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #2 on: March 26, 2017, 07:30:25 PM »
Please lower your standards enough to buy some of my loans.  I offer about 200 loans for sale every day, and have been selling about 1 per day average. 

Rob L

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #3 on: March 26, 2017, 07:56:29 PM »
Hey, when Fred (the other one, not Fred93) says he is moving on from LC after what clearly must have been a very substantial investment of time and effort in Folio trading I gotta presume things must be really bad in LC Folio land.

fliphusker

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #4 on: March 26, 2017, 09:24:41 PM »
Please lower your standards enough to buy some of my loans.  I offer about 200 loans for sale every day, and have been selling about 1 per day average.
My standards are lower than the docs. So get those never late notes over 16 YTM with no markup. :)
I do not buy enough on FOLIO to have an opinion that he is looking for.
Waiting for someone to fall out of FOLIO with their really nice program they would like to share. :)

dr.everett

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #5 on: March 27, 2017, 12:36:18 AM »
Please lower your standards enough to buy some of my loans.  I offer about 200 loans for sale every day, and have been selling about 1 per day average.

Something tells me if you're selling them it's for a good reason... :P

dr.everett

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #6 on: March 27, 2017, 12:46:30 AM »
Don't make the mistake of lowering your lending standards. Just take your money elsewhere.

Yeah- having been there and done that, I agree. Since it's not part of my "secret sauce" any more- I was buying low FICO notes for a while, provided they didn't have certain bad attributes. I did this in my IRA account, and it paid the price. I was much less risk tolerant in my Taxable account, and it currently shows the results of that risk avoidance.

At one point I was buying notes all the way down to 619. Not so any more. After selling off as many of my low FICO notes as possible, I stopped doing that about 2 months ago after seeing selling wasn't making the default rate decline, and was causing me to break even after the discounts to sell them were factored in.

My only selling now is based on 31-120 notes- when they go 31-120 they get sold.

2pm today was the last purchase Lending Robot made on my behalf- it doubled up on notes- purchasing one of each for my IRA and Tax accounts. Just really surprised that after being able to buy so much for as long as I have its finally drying up.  :o

dr.everett

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #7 on: March 27, 2017, 12:56:35 AM »
Please lower your standards enough to buy some of my loans.  I offer about 200 loans for sale every day, and have been selling about 1 per day average.
My standards are lower than the docs. So get those never late notes over 16 YTM with no markup. :)
I do not buy enough on FOLIO to have an opinion that he is looking for.
Waiting for someone to fall out of FOLIO with their really nice program they would like to share. :)

Thanks for a suggestion :)

Made a mod to a few of my YTM filters after realizing I may be missing some notes. We'll see if it makes any difference.

dr.everett

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #8 on: March 28, 2017, 12:38:45 AM »
I think there's something going on with Lending Robot- a manual check of Folio shows notes that match my specs. Going to buy manually and send Support an email.

dr.everett

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #9 on: March 28, 2017, 05:10:45 PM »
They confirmed they found and fixed a problem. Not sure if it affected anyone else or not, but my purchasing is now working as it should.

fliphusker

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #10 on: April 13, 2017, 11:21:17 AM »
Guess I have hit the same thing as you Dr. Everett. Three days and only bought two notes. Even notes that have a recent IGP on them are selling the same day as being listed with a very slight discount.
Guess I keep my cash drag going and not buying notes at a premium. :(

dr.everett

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #11 on: April 13, 2017, 02:13:39 PM »
Purchasing is going well for me. I'm getting $800-1K worth of notes daily. Since LR fixed whatever their issue was it's been smooth sailing. Cash left over after purchases is zero or very close to zero.

fliphusker

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #12 on: April 13, 2017, 06:03:31 PM »
As LC does not distinguish IGP notes from ones that have never been late, does LR? Does it matter to you getting notes that have been IGP at some point, but technically never late? I know you deal with such a huge volume that you probably never look at them. Maybe just the cost of doing business?
Purchasing is going well for me. I'm getting $800-1K worth of notes daily. Since LR fixed whatever their issue was it's been smooth sailing. Cash left over after purchases is zero or very close to zero.

dr.everett

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #13 on: April 13, 2017, 07:10:55 PM »
As LC does not distinguish IGP notes from ones that have never been late, does LR? Does it matter to you getting notes that have been IGP at some point, but technically never late? I know you deal with such a huge volume that you probably never look at them. Maybe just the cost of doing business?
Purchasing is going well for me. I'm getting $800-1K worth of notes daily. Since LR fixed whatever their issue was it's been smooth sailing. Cash left over after purchases is zero or very close to zero.

I don't know the answer so I asked them and will share what I hear back. I'm hoping they say that IGP equals late. If they are choosing IGP and representing them as never late, I'll ask for a feature request to address this. I've seen too many of my notes go IGP several months before going into a CO death spiral. So yes it does matter to me and I would suspect others as well.

dr.everett

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Re: So now it seems the Folio Loans have finally started to dry up....
« Reply #14 on: April 13, 2017, 09:13:31 PM »
LR confirmed that they consider IGP notes that have never progressed to Late as being Never Late when making purchasing decisions.  >:(

Personally I find this troubling as IGP is an indicator of distress to me based on past observations. I would not buy a note with chronic IGP, nor would I want to buy a note that showed instances of IGP. I would also consider selling a note that started displaying IGP as well. I understand the "I screwed up and missed a payment" argument because we've all done it once, but if I saw IGP along with any change in FICO, the note would then be on my radar.

I've asked them for a Feature Request to be able to exclude IGP notes from my purchases. We'll see what they say.