Author Topic: Note Aging Algorithm  (Read 1464 times)

avid investor

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Note Aging Algorithm
« on: January 23, 2018, 02:31:31 PM »
Does anybody have a reasonably good note aging algorithm that they want to share?  The "31 - 120" that LC provides is virtually meaningless as a predictor of near-term losses.  I'm not looking for 100% accuracy, but I realize that payments to date / months since origination is not a good way to go because borrowers might have been paid way ahead months back and yet have not paid in 3 months.  Similarly, a borrower that is on a payment plan to catch up might be harder to factor in.

Fred93

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Re: Note Aging Algorithm
« Reply #1 on: January 23, 2018, 08:03:41 PM »
Most people use the guidelines shown at the bottom of this page:
https://www.lendingclub.com/info/demand-and-credit-profile.action

Almost no one pays way ahead.  Just doesn't happen.  Most notes either pay on time, or go late, and those who go late mostly default.

Rob L

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Re: Note Aging Algorithm
« Reply #2 on: January 24, 2018, 09:01:41 AM »
You might also be interested in reading the following old thread:

https://forum.lendacademy.com/index.php/topic,1302.0.html