Author Topic: If loans are auto-payed how do some loans pay in the Grace Period every month?  (Read 12307 times)

LonghornSF

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I just got my first grace period note.  >:( The guy's FICO score is up to 755-759 now and it was an IR01 401 loan and it seemed to check all the right boxes. The only negative I could think of was the guy was located in Detroit. Income verified, <20% DTI, long employment and credit history, etc. Frustrating but hopefully he gets his act together shortly.

https://www.lendingclub.com/account/loanPerf.action?loan_id=4215518&order_id=6416759&note_id=21985461
You do realize lack of defaults can indicate poor performance, right? It's all about balance. Don't stress about the notes. Just set rules on how to respond and follow them.

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Oh yes, I realize defaults and especially grace periods are inevitable. I don't have to be happy about it though. ;)  Unfortunately, I can't sell the notes (at present) because I work in the investment management industry and our compliance department won't allow it. I'm still hopeful this guy will go current though.

mitgib

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I just got my first grace period note.  >:( The guy's FICO score is up to 755-759 now and it was an IR01 401 loan and it seemed to check all the right boxes. The only negative I could think of was the guy was located in Detroit. Income verified, <20% DTI, long employment and credit history, etc. Frustrating but hopefully he gets his act together shortly.

https://www.lendingclub.com/account/loanPerf.action?loan_id=4215518&order_id=6416759&note_id=21985461
You do realize lack of defaults can indicate poor performance, right? It's all about balance. Don't stress about the notes. Just set rules on how to respond and follow them.

Sent from my SAMSUNG-SGH-I747 using Tapatalk 2

Oh yes, I realize defaults and especially grace periods are inevitable. I don't have to be happy about it though. ;)  Unfortunately, I can't sell the notes (at present) because I work in the investment management industry and our compliance department won't allow it. I'm still hopeful this guy will go current though.

This is interesting, what are you not allowed to participate in that I am a normal person can?

LonghornSF

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This is interesting, what are you not allowed to participate in that I am a normal person can?

Almost any type of equity or fixed income trade I want to make is heavily monitored and required to be precleared with our compliance department, among other rules. The SEC regulations are pretty strict for investment advisors so this is a standard practice in the industry. In fact, some investment managers outright ban their employees from trading individual securities.

I'm actually leaving the firm in two months though, so I'll probably explore trading the notes at that time.

Show Me The $

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This is interesting, what are you not allowed to participate in that I am a normal person can?

Almost any type of equity or fixed income trade I want to make is heavily monitored and required to be precleared with our compliance department, among other rules. The SEC regulations are pretty strict for investment advisors so this is a standard practice in the industry. In fact, some investment managers outright ban their employees from trading individual securities.

I'm actually leaving the firm in two months though, so I'll probably explore trading the notes at that time.


This is very common. Silly, but common

rawraw

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This is interesting, what are you not allowed to participate in that I am a normal person can?

Almost any type of equity or fixed income trade I want to make is heavily monitored and required to be precleared with our compliance department, among other rules. The SEC regulations are pretty strict for investment advisors so this is a standard practice in the industry. In fact, some investment managers outright ban their employees from trading individual securities.

I'm actually leaving the firm in two months though, so I'll probably explore trading the notes at that time.
I had to get clearance through compliance to even participate in LC.  I just have to disclose it every year on my ethics forms.  Luckily I don't have to get permission every trade.