Author Topic: How could a note with pending payment be listed on FolioFn?  (Read 1873 times)

Joe6Luck

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How could a note with pending payment be listed on FolioFn?
« on: October 04, 2018, 11:16:22 PM »
I find the following note on FolioFn today (10/4). See the snapshot below for details. It has a pending payment (due on 10/2), and I think it is prohibited to list such a note on foliofn. Does anybody know how this could happen? And, what will happen if I buy this note today and the payment becomes late in a few days?

https://www.lendingclub.com/foliofn/browseNotesLoanPerf.action?showfoliofn=true&loan_id=76415184&order_id=109645784&note_id=125132885

Fred93

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Re: How could a note with pending payment be listed on FolioFn?
« Reply #1 on: October 05, 2018, 06:49:42 AM »
Does anybody know how this could happen? And, what will happen if I buy this note today and the payment becomes late in a few days?

You won't be able to buy it.  The buy will fail.  Lots of buys fail for this reason.

mark78

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Re: How could a note with pending payment be listed on FolioFn?
« Reply #2 on: October 06, 2018, 03:49:13 AM »
This is the same issue as https://forum.lendacademy.com/index.php/topic,4789.0.html, except that thread was about buying programatically and this one is about buying manually. I expect the same result though- it will tell you you've bought the note, but a few days later it will be in your "Canceled Buy Orders", with the reason that a payment was pending.

Joe6Luck

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Re: How could a note with pending payment be listed on FolioFn?
« Reply #3 on: October 06, 2018, 09:48:30 PM »
This is the same issue as https://forum.lendacademy.com/index.php/topic,4789.0.html, except that thread was about buying programatically and this one is about buying manually. I expect the same result though- it will tell you you've bought the note, but a few days later it will be in your "Canceled Buy Orders", with the reason that a payment was pending.

I saw similar discussion before: if one purchases a note on foliofn one business day before its due date, the purchase will be automatically cancelled. However, if nobody purchases it, the note on foliofn will be automatically cancelled by LC and shown as "Canceled, Payment Processing".

In my case, I saw the above note was still on foliofn even two business days after its due date. So, I am less curious why a purchase will be cancelled, and am more curious why a note like this is still listed on foliofn. Did you observe similar situation before?

Fred93

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Re: How could a note with pending payment be listed on FolioFn?
« Reply #4 on: October 06, 2018, 10:42:54 PM »
In my case, I saw the above note was still on foliofn even two business days after its due date. So, I am less curious why a purchase will be cancelled, and am more curious why a note like this is still listed on foliofn. Did you observe similar situation before?

There are no real answers for things like this.  I didn't write the software, so I can't tell you "why" it was done this way.  I think the people who wrote this stuff are long gone.  In my experience, asking the present LC people about details like this results in nonsensical feedback.  "Did you make sure you're computer was plugged in?" 

I can give you some feel for how things work, based on years of using and observing LC's stuff.  There are some time lags.  Everything you see isn't instant live stuff.  You and I might EXPECT that it should all be live, but reality does not align with such expectations.  There are batch programs that run periodically to update some things.  In my mental model, there are multiple databases, and periodic programs that move data from one to the other.  This means that some of the stuff you see is a little old.  Notes appear to be offered for sale for awhile after they're already sold, etc.  I suspect this is the same sort of thing.

I know that in my API purchases on the secondary market, of those transactions which apparently succeed, ie return "SUCCESS_PENDING_SETTLEMENT", about 20% of the notes never end up in my account.  When I've asked LC about some examples specifically, the answer has always been payment pending.

My view is that it is nutty to design a system so that a lot of transactions appear to go thru but don't really and are mopped up later by another process.  I wouldn't want to design a system this way, and I'm not defending it.  I'm just they guy telling you that this is the way it is.

Joe6Luck

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Re: How could a note with pending payment be listed on FolioFn?
« Reply #5 on: October 08, 2018, 11:19:58 AM »
In my mental model, there are multiple databases, and periodic programs that move data from one to the other.  This means that some of the stuff you see is a little old.  Notes appear to be offered for sale for awhile after they're already sold, etc.  I suspect this is the same sort of thing.

You mental model makes sense. I met similar situation in my work experience before. If this is actually the case, I won't expect Lending Club will fix the problem unless there is a strong reason for them to refactor their whole system :(