Author Topic: Borrowers with >$20,000/month Income  (Read 11482 times)

Grant

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Re: Borrowers with >$20,000/month Income
« Reply #15 on: January 07, 2013, 05:38:33 PM »
Citadel is also a pretty big hedge fund. So.. would not be all that mind blowing for this guy to make 35k+/month.

Conversely, it is mind-blowing that this "guy" can't take a loan out against his 401(k) at less than 16.29%+ 5% origination fee.  OK, fine... there are problems with a 401(k) loan assuming one's employer allows them... namely the requirement to pay them back when you leave your job. 

But I'll stick to my main point.  This person should have financial connections and somehow paying the interest and fees is more attractive than his other options???   ::)

rawraw

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Re: Borrowers with >$20,000/month Income
« Reply #16 on: January 07, 2013, 07:27:37 PM »
Yes, you're right... So if banks aren't throwing themselves at this particular type of borrower to lend at a more favorable rate, I ask myself what the banks know that I don't.

Banks pay near zero interest on deposits and buy Treasury Notes and Bonds paying 1-3%.

It's guaranteed income and no headaches.

Why would they want to bother themselves lending money out to complete strangers?

http://www.bloomberg.com/news/2012-08-20/banks-use-1-77-trillion-to-double-treasury-purchases.html
http://www.treasurydirect.gov/RI/OFNtebnd
It's much more complicated than that.

There is a ton of headaches involved with it, especially for small and mid sized banks.  First, the spread isn't enough for the average bank to pay it's overhead.  Then you are assuming interest rate risk at a time where Basel III wants to include unrealized losses on AFS securities in capital ratios.  In addition to this, you could get in regulatory trouble on the compliance side for Community Reinvestment Act.  And then you have the suppliers of the capital who are angry about their low ROE. 
« Last Edit: January 07, 2013, 07:29:51 PM by rawraw »

yojoakak

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Re: Borrowers with >$20,000/month Income
« Reply #17 on: January 07, 2013, 08:26:14 PM »
Citadel is also a pretty big hedge fund. So.. would not be all that mind blowing for this guy to make 35k+/month.
There are about 10 companies named "Citadel" that show up on Google maps, including a carpet cleaning business.

The Borrower doesn't really specify which one he works for.

https://maps.google.com/maps?hl=en&q=Citadel%20near%3A%20NEW%20YORK%2C%20NY

rev

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Re: Borrowers with >$20,000/month Income
« Reply #18 on: January 08, 2013, 10:29:24 AM »
Or maybe he is "one of us", saves a big portion of those $35k every month, is just doing his due diligence before investing those savings in LC, and will pay off the loan right after it's issued.

yojoakak

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Re: Borrowers with >$20,000/month Income
« Reply #19 on: January 08, 2013, 12:02:35 PM »
Yes, you're right... So if banks aren't throwing themselves at this particular type of borrower to lend at a more favorable rate, I ask myself what the banks know that I don't.

Banks pay near zero interest on deposits and buy Treasury Notes and Bonds paying 1-3%.

It's guaranteed income and no headaches.

Why would they want to bother themselves lending money out to complete strangers?

http://www.bloomberg.com/news/2012-08-20/banks-use-1-77-trillion-to-double-treasury-purchases.html
http://www.treasurydirect.gov/RI/OFNtebnd
It's much more complicated than that.

There is a ton of headaches involved with it, especially for small and mid sized banks.  First, the spread isn't enough for the average bank to pay it's overhead.  Then you are assuming interest rate risk at a time where Basel III wants to include unrealized losses on AFS securities in capital ratios.  In addition to this, you could get in regulatory trouble on the compliance side for Community Reinvestment Act.  And then you have the suppliers of the capital who are angry about their low ROE.

It's not the banks fault. It's just that consumers apparently just don't want to borrow money:

(From the article) "“It’s a function of inherently weak demand for loans and that relates to inherently weak demand in the economy,” he said. “Consumers, households, businesses: they’re paying down debt, they’re saving money, they’re not borrowing. They don’t have an appetite.” "

OrthoInvest

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Re: Borrowers with >$20,000/month Income
« Reply #20 on: January 12, 2013, 08:54:11 AM »
About a month ago, there was a verified income of over 200,000 per month...

I just shrugged it off because it was errors all around and looked at the other stuff.

 :D

DanB

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Re: Borrowers with >$20,000/month Income
« Reply #21 on: January 12, 2013, 08:29:11 PM »

rawraw

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Re: Borrowers with >$20,000/month Income
« Reply #22 on: January 12, 2013, 09:23:39 PM »
How do you guys like this one?

https://www.lendingclub.com/browse/loanDetail.action?loan_id=3098755&previous=browse
I thought of this thread when I saw this note.  You guys can rely on historical info, but I'm not touching notes like that.  IMO, that's when you start forgetting that analysis of historical data can only tell you so much ha ha

AnilG

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Re: Borrowers with >$20,000/month Income
« Reply #23 on: January 12, 2013, 09:44:15 PM »
How do you guys like this one?

https://www.lendingclub.com/browse/loanDetail.action?loan_id=3098755&previous=browse

The Lending Club Grade B4, FICO score in 6xx, Rent, clean credit record lead me to believe that it is typo or most likely annual income entered as monthly income. Even with mis-stated income, loan doesn't appear that bad. The loan amount is close to total debt.
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aptosca

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Re: Borrowers with >$20,000/month Income
« Reply #24 on: January 12, 2013, 11:28:27 PM »
Or maybe a decimal got missed: 20K/yr rather than 2M/yr.

nonattender

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Re: Borrowers with >$20,000/month Income
« Reply #25 on: January 13, 2013, 01:23:44 AM »
Imagine if the technology existed to pre-format a field such that a user's input was required to conform.  Oh, wait...   ::)
A little nonsense now and then is relished by the wisest men.

DanB

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Re: Borrowers with >$20,000/month Income
« Reply #26 on: January 13, 2013, 03:11:25 AM »
Imagine if the technology existed to pre-format a field such that a user's input was required to conform.  Oh, wait...   ::)

Yeah, really huh.  :)

breitenm

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Re: Borrowers with >$20,000/month Income
« Reply #27 on: January 15, 2013, 01:53:41 AM »
I avoid loans that state an income >=$20k. I assume that these folks are self-employed and naturally there my be a huge variance in their monthly income.
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