Author Topic: Increase In Applicants With Public Records?  (Read 11737 times)

brycemason

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Re: Increase In Applicants With Public Records?
« Reply #15 on: December 31, 2012, 11:54:09 AM »
I don't think we need to do any more research. We've established a major change in the data from week to week. It's time to call LC.

rawraw

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Re: Increase In Applicants With Public Records?
« Reply #16 on: December 31, 2012, 12:32:23 PM »
I don't think we need to do any more research. We've established a major change in the data from week to week. It's time to call LC.
I called Chris Young and he was out until the 27th.  So I called the number his voice mail referred me to.  They were busy, so I left a voicemail with Investor Services detailing what we've found and asking for clarification.

brycemason

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Re: Increase In Applicants With Public Records?
« Reply #17 on: December 31, 2012, 03:50:53 PM »
I figured they'd be on skeleton crew.  ::)

rawraw

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Re: Increase In Applicants With Public Records?
« Reply #18 on: December 31, 2012, 04:09:52 PM »
I figured they'd be on skeleton crew.  ::)
Yea, that's what I figured.  So I figured voice mail was the best bet.

writing2reality

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Re: Increase In Applicants With Public Records?
« Reply #19 on: January 02, 2013, 12:54:25 PM »
I don't think we need to do any more research. We've established a major change in the data from week to week. It's time to call LC.
I called Chris Young and he was out until the 27th.  So I called the number his voice mail referred me to.  They were busy, so I left a voicemail with Investor Services detailing what we've found and asking for clarification.

Have you, or anyone else for that matter, heard back from LC regarding this issue? Thanks!
WriteYourOwnReality Blog: http://www.writeyourownreality.com

brycemason

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Re: Increase In Applicants With Public Records?
« Reply #20 on: January 02, 2013, 02:22:34 PM »
A gentleman named Tim promised to give me a return call once he verifies the status.

rawraw

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Re: Increase In Applicants With Public Records?
« Reply #21 on: January 02, 2013, 05:49:20 PM »
A gentleman named Tim promised to give me a return call once he verifies the status.
Perfect.  I'm curious to know what is going on.

brycemason

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Re: Increase In Applicants With Public Records?
« Reply #22 on: January 02, 2013, 05:53:48 PM »
My hypothesis was fundamentally correct, if hyperbolic!
Quote
Perhaps the explanation is they bought the National Association of People with Public Records mailing list!

"The increase in the number of applicants with a public records [sic] was the result of a recent marketing campaign. We are very confident in the pricing/risk of these populations and we expect the number of public records on the platform to normalize to closer to previous levels over the next 10 days." -- Mike McCool


rawraw

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Re: Increase In Applicants With Public Records?
« Reply #23 on: January 02, 2013, 05:57:14 PM »
My hypothesis was fundamentally correct, if hyperbolic!
Quote
Perhaps the explanation is they bought the National Association of People with Public Records mailing list!

"The increase in the number of applicants with a public records [sic] was the result of a recent marketing campaign. We are very confident in the pricing/risk of these populations and we expect the number of public records on the platform to normalize to closer to previous levels over the next 10 days." -- Mike McCool
Do you think LC is trying to increase the overall returns?  Doesn't a public record increase the loan grade in the pricing system, regardless of the other data?

brycemason

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Re: Increase In Applicants With Public Records?
« Reply #24 on: January 02, 2013, 07:18:21 PM »
LC adjusts the interest rate according to their risk model, which probably incorporates the presence of public records either directly or through the credit score. I'm glad to have confirmed the data is correct.

nonattender

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Re: Increase In Applicants With Public Records?
« Reply #25 on: January 02, 2013, 09:34:09 PM »
My hypothesis was fundamentally correct, if hyperbolic!
Quote
Perhaps the explanation is they bought the National Association of People with Public Records mailing list!

"The increase in the number of applicants with a public records [sic] was the result of a recent marketing campaign. We are very confident in the pricing/risk of these populations and we expect the number of public records on the platform to normalize to closer to previous levels over the next 10 days." -- Mike McCool
Do you think LC is trying to increase the overall returns?  Doesn't a public record increase the loan grade in the pricing system, regardless of the other data?

In a word, yes.  As LC's "NAR" calculation is a "speed-boating" calculation which counts new loans before they are seasoned, they
have merely to pull a credit quality marketing lever to keep the NAR's inflated.  Naturally, this will only work for a (relatively) 'short'
period of time, but, with open proclamations of an eye toward an IPO within the next 18 months, the NAR's will be artificially high -
within that timeframe - before they naturally begin to fall as the loans age and season.  I would watch their credit quality mixture.

If all of a sudden their platform begins originating lots of higher interest rate loans, I think it's safe to say that they're dressing for
public debut...  Of course, I often say things that would make Diogenes blush and consider himself naive, so - take that as I say it.

A little nonsense now and then is relished by the wisest men.

faeriering

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Re: Increase In Applicants With Public Records?
« Reply #26 on: January 06, 2013, 10:20:45 AM »
So has this changed how people are selecting notes?

I haven't modified my filters at all, but I'm mostly just reinvesting at this point so having fewer notes to invest in isn't that bad of a thing.

brycemason

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Re: Increase In Applicants With Public Records?
« Reply #27 on: January 06, 2013, 10:55:14 AM »
Nope, as long as the data is correct, I have no reason to believe the underlying relationship between a public record and a loss is any different. Same script.