Author Topic: Stale Credit Scores.  (Read 1836 times)

jrl

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Stale Credit Scores.
« on: January 08, 2020, 07:00:12 PM »
Usually the credit scores of borrowers update mid-month, but i've recently found out that around 90% of my current/IGP/Late notes have had their last credit pull on or before November 14th.

It's kinda hard to price notes with stale credit scores, so this is a major issue.

I also have 15 notes that haven't updated since August, with 2 that last updated in 2018, and 2 in 2017!

Also, the more recent credit pulls don't show up on the individual note's "credit score change graph" and are noticable on the NSR plaform with things like "UP (-25)" or "DOWN (10)". The only place I see these numbers is the "Download All - Extended" and "Download Details - All Traded Notes" CSV files accessed from the notes page (on LC site).

I called LC earlier today, and their respone was that "nobody else has brought this up," "can I put you on hold for a few while I ask the team," ("sure," few minutes later,) "maybe the updates are delayed from when they're pulled" and "we'll look into it."

I'm just wondering if this is something that anyone else has noticed or heard of happening before.

I hope it's not a sign of a bigger issue, like trying to save money by delaying credit pulls.

Fred93

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Re: Stale Credit Scores.
« Reply #1 on: January 08, 2020, 08:00:22 PM »
I am sure other people have brought this up, because I've seen this issue discussed on this forum many times over the past few years.

jrl

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Re: Stale Credit Scores.
« Reply #2 on: January 09, 2020, 01:02:54 PM »
I am sure other people have brought this up, because I've seen this issue discussed on this forum many times over the past few years.

Ok, I went and did a search, but could only find this discussion: Odd FICO trend. https://forum.lendacademy.com/index.php/topic,4250.0.html

This seems a little more serious, as it's been almost 2 months since credit scores have been updated for well over the majority of notes. No credit score for December, one of the biggest down months for credit scores. If this continues and there's no update for January, (possibly the worst month for credit) then pricing notes to buy on folio will be impossible.

How can you buy a note in January when in Late November they could've literally went bankrupt and their score is still showing as 690? It's usually an average of around 15 days stale if you're buying throughout the month, 30-31 days max. (aside from that odd 1-2% that don't update regularly)

Right now 80% to 90% are sitting at 56 days stale!

I'd like to keep reinvesting, but it's extremely risky to be buying notes on Folio like this. This is the worst season for this to be happening in.

macroman7799

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Re: Stale Credit Scores.
« Reply #3 on: January 11, 2020, 04:41:29 PM »
Thanks for pointing this out. I only sell marginal notes on Folio. I use the credit score as one of my criteria but had not noticed how stale that data is. Maybe more of us need to call LC so that it's more on their radar.

Fred93

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Re: Stale Credit Scores.
« Reply #4 on: January 11, 2020, 05:31:27 PM »
I am sure other people have brought this up, because I've seen this issue discussed on this forum many times over the past few years.

Ok, I went and did a search, but could only find this discussion: Odd FICO trend. https://forum.lendacademy.com/index.php/topic,4250.0.html

Yea, I also did a search and can't find the discussions I remember.  My memory is that there was one guy who would look every month on the day he expected the FICO scores to update and call LC when they didn't.  My impression from that discussion was that the process to put the update scores into the database probably contained a manual step, so someone had to get around to it, which made the update variable by many days.

jrl

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Re: Stale Credit Scores.
« Reply #5 on: January 11, 2020, 08:10:59 PM »
I am sure other people have brought this up, because I've seen this issue discussed on this forum many times over the past few years.

Ok, I went and did a search, but could only find this discussion: Odd FICO trend. https://forum.lendacademy.com/index.php/topic,4250.0.html

Yea, I also did a search and can't find the discussions I remember.  My memory is that there was one guy who would look every month on the day he expected the FICO scores to update and call LC when they didn't.  My impression from that discussion was that the process to put the update scores into the database probably contained a manual step, so someone had to get around to it, which made the update variable by many days.

I called again yesterday, they still "never heard of something like this happening." The guy (Chris?) seemed more interested, after I showed him the exact issue. No update yet. I'll wait until the 15th before calling again. They seem adamant that it's automatic though, but could just be guessing. Though it would make sense with the amount of Loans/Notes they have.

I tried to go through the loanstats file, but the last_pull_d on those are all the first of the month. (The month it was pulled or the one after?) So that's kinda useless. Out of my non-charged-off/non-fully-paid notes, 7.3% have a last_pull_d of less than 30 days; 85.7% are 11/14/19; 1.37% (24) are prior to 11/14/19 with 7 notes from 2018, and 1 from 2017. All the ones prior to 11/14 on my account are current. Out of my 1748 Current/IGP/Late/Default notes, I have at least one and up to ten notes with a last_pull_d for every day since 11/14, except Dec. 1, including weekends, up to yesterday. All of the notes on this account are from the primary platform, but it's a similar situation on my smaller IRA now-folio account.

jrl

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Re: Stale Credit Scores.
« Reply #6 on: January 14, 2020, 07:34:31 PM »
Okay, the regular update of credit scores posted. This morning actually. Still around 1-2% with older credit scores, like the one note I have that hasn't updated since it was issued over a year ago. I don't think that'll ever get fixed. Now the chart for a majority of the loans goes from an 11/19 datapoint to a 1/20 datapoint.