Author Topic: What amount does investors obtain after chagre-off?  (Read 2768 times)

Jogi

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What amount does investors obtain after chagre-off?
« on: October 12, 2017, 07:15:33 AM »
I'm analyzing the payment history and want to know what amount an investor obtains in case of a chage-off.

Eg. look at loan 57167, which defaulted in April 2015. The payment history gives me the following info:

PBAL_BEG_PERIOD:      23365.3
RECEIVED_AMT:            0
PCO_RECOVERY:            3354.94
PCO_COLLECTION_FEE:  603.88

 So what does this tell me?
The investor get 0 (RECEIVED_AMT=0) even though some money has been recovered (PCO_RECOVERY=3354.94)?
And who gets the collection fee? (PCO_COLLECTION_FEE=603.88)

Many thanks!


Jogi

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Re: What amount does investors obtain after chagre-off?
« Reply #1 on: October 13, 2017, 11:39:07 AM »
Since nobody replied, I try to answer the question myself, hoping for validation...

According to LC's NAR calculation:
https://www.lendingclub.com/public/lendersPerformanceHelpPop.action

The return includes interest, late fee and net recoveries minus service fees and charge offs.
So in the case above, the investor would get ( PCO_RECOVERY +PCO_COLLECTION_FEE) at the last payment date.
The amount lost is therefore PBAL_BEG_PERIOD-(PCO_RECOVERY +PCO_COLLECTION_FEE)

In hope for validation....


SLCPaladin

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Re: What amount does investors obtain after chagre-off?
« Reply #2 on: October 13, 2017, 12:26:05 PM »
Sorry that no one has chimed in on this thread. I'm in the process of winding down my portfolio (although I'm not liquidating on Folio like others). As a result, I don't get into the weeds as much any more. But I think that the collection fee does not go to the investors. I believe the collection fee is viewed as a service provided by LC, so they keep that amount. Someone more knowledgeable may be able to correct me if I have misstated.

PennySaved

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Re: What amount does investors obtain after chagre-off?
« Reply #3 on: October 14, 2017, 08:25:19 AM »
What is the difference between recovery fee and collection fee?  Both show up as deductions against my account in monthly statements.

anabio

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Re: What amount does investors obtain after chagre-off?
« Reply #4 on: October 14, 2017, 11:48:24 AM »
What is the difference between recovery fee and collection fee?  Both show up as deductions against my account in monthly statements.

The collection fee comes FROM the investor's funds (ie...you pay it...not the borrower) and goes to LC's coffers. It only comes into effect if the borrower makes a late payment...and supposedly is to reimburse LC for the cost of collecting late payments (ie. phone calls, etc). NOTE: sometimes LC charges a LATE fee in conjuction with the recovery fee. If they do then that fee comes from the borrower and goes to the investor (you).

The recovery fee concerns accounts that have defaulted/charged off. Any recovered amount goes to the investor MINUS this recovery fee (which goes to comes LC's coffers.
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money

Jogi

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Re: What amount does investors obtain after chagre-off?
« Reply #5 on: October 25, 2017, 09:01:03 AM »
@anabio

Thanks for the reply!
Regarding your citate: "
The recovery fee concerns accounts that have defaulted/charged off. Any recovered amount goes to the investor MINUS this recovery fee (which goes to comes LC's coffers."

So can you state, what exactly the amout is, the investor receives for this specific loan with ID 57167?
Is it  PCO_RECOVERY - PCO_COLLECTION_FEE =3354.94 - 603.88?
Or is it only PCO_RECOVERY=3354.94 what the investor receives?

mrwhizzard

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Re: What amount does investors obtain after chagre-off?
« Reply #6 on: October 25, 2017, 12:19:30 PM »
So can you state, what exactly the amout is, the investor receives for this specific loan with ID 57167?
Is it  PCO_RECOVERY - PCO_COLLECTION_FEE =3354.94 - 603.88?
Or is it only PCO_RECOVERY=3354.94 what the investor receives?

I can't help you with that specific loan, but here are the details from a couple of loans that I have had recoveries on. Maybe you can cross reference it with your data.

Loan 59372712 ($25 note): recovered $3.72, recovery fee -$0.67, net recovery $3.05
Loan 54100241 ($25 note): recovered $5.42, recovery fee -$0.98, net recovery $4.44
Loan 55947731 ($25 note): recovered $3.61, recovery fee -$0.65, net recovery $2.96

Hope that helps. I suspect the answer to your question is "PCO_RECOVERY - PCO_COLLECTION_FEE".

lascott

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Re: What amount does investors obtain after chagre-off?
« Reply #7 on: October 26, 2017, 10:40:05 PM »
Saw this article that came out yesterday to be relevant.

Title: Donít Forget about Loan Recoveries Ė Part 1
https://www.orchardplatform.com/blog/dont-forget-loan-recoveries-part-1/
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y