Author Topic: New LC Filter for Monthly Income  (Read 4387 times)

WES

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New LC Filter for Monthly Income
« on: March 26, 2013, 01:59:20 PM »
Anybody else having trouble getting this filter to work? It's returning invalid results for me, despite logging in and out several times today.

PennySaved

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Re: New LC Filter for Monthly Income
« Reply #1 on: March 26, 2013, 04:34:56 PM »
I used it yesterday, worked OK.

loan_trader

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Re: New LC Filter for Monthly Income
« Reply #2 on: March 04, 2014, 01:43:33 PM »

I'm still new and feeling my way around here as I fine tune my strategies..

But loans like the 2 listed below really boggle my mind. I just don't understand how someone can need to take out a loan for 6k who earns 20k a month. Maybe this is why it's only 27% funded...but I'm sure it will get funded eventually (as they all do). Personally, this screams of fishiness. Just trying to get away from the numbers that everyone can crank through and to some questions regarding the people behind these things.  Or perhaps they are lying about income.


loan_id=12498808

Borrower Profile

    Gross Income: $20,000 / month
    Job Title: n/a
    Home Ownership: OWN
    Location: troy, AL
    Length of Employment: 10+ years
    Debt-to-Income (DTI): 1.33%

(as reported by credit bureau on 3/4/14)Borrower Credit History

    Credit Score Range: 660-664
    Delinquent Amount: $0.00
    Earliest Credit Line: 08/1995
    Delinquencies (last 2 yrs): 0
    Open Credit Lines: 10
    Months Since Last Delinquency: n/a
    Total Credit Lines: 15
    Public Records on File: 1
    Revolving Credit Balance: $5,625.00
    Months Since Last Record: 88
    Revolving Line Utilization: 61.10%
    Months Since Last Major Derogatory: n/a
    Inquiries in Last 6 Months: 0
    Collections Excluding Medical: 0
    Accounts Now Delinquent: 0

Similarly, here is another head scratcher...you make 200k a year but don't have enough for a 6k home improvement project?

   
Borrower Member_14480820

    Loan Submitted:   3/3/14 8:31 PM   
    Review Status:   Under Review Under Review   
    Monthly Payment:   $192.68 (36)
    Member Loan#:   12468699 Prospectus   

(all information unverified unless otherwise denoted)Borrower Profile

    Gross Income: $16,667 / month
    Job Title: service tech
    Home Ownership: MORTGAGE
    Location: Cypress, TX
    Length of Employment: 3 years
    Debt-to-Income (DTI): 7.82%

(as reported by credit bureau on 3/3/14)Borrower Credit History

    Credit Score Range: 695-699
    Delinquent Amount: $0.00
    Earliest Credit Line: 12/1999
    Delinquencies (last 2 yrs): 0
    Open Credit Lines: 7
    Months Since Last Delinquency: n/a
    Total Credit Lines: 22
    Public Records on File: 1
    Revolving Credit Balance: $9,224.00
    Months Since Last Record: 29
    Revolving Line Utilization: 58.40%
    Months Since Last Major Derogatory: n/a
    Inquiries in Last 6 Months: 0
    Collections Excluding Medical: 0
    Accounts Now Delinquent: 0

Anyways, slow day on the boards so I thought I'd see what everyone thought.  When running stats on NSR of anyone in a B loan making over 200k you get a ROI of 7.5% (avg age 14 months), with rates of 11.74%, so I'm guessing these guys at current rates of under 10% aren't going to pan out. Sub 7%, right?

Just trying to get an idea of which loans to stay away from (and I can't believe they all get funded). 'Guess it just goes to show that it's not as easy as simply running filters.

rawraw

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Re: New LC Filter for Monthly Income
« Reply #3 on: March 04, 2014, 03:13:35 PM »
In this asset class, you have to keep the macro in mind.  2 bad applies in a barrel of 2,000 will hardly move the needle but it will take a lot of work to find them.

Lovinglifestyle

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Re: New LC Filter for Monthly Income
« Reply #4 on: March 04, 2014, 03:41:41 PM »
If the source of their gross income is from self-employment, then expenses could even give them a negative net at the end of the month.  We can't sort this out through the Q & A nonexistent process, nor when the borrower doesn't volunteer any clarification.  When the job title is vague or ambiguous and the numbers don't make sense, I pass.

loan_trader

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Re: New LC Filter for Monthly Income
« Reply #5 on: March 04, 2014, 04:14:57 PM »
In this asset class, you have to keep the macro in mind.  2 bad applies in a barrel of 2,000 will hardly move the needle but it will take a lot of work to find them.

By this I assume you mean that if you just trust your filters then weeding out these 2 bad apples isn't worth the time and instead of taking the time to weed them out to just realize that a few of them won't change your overall portfolio?  True, true.

I guess I should mention though that I found these 2 by looking at 4 or 5 in this class. So I guess what I'm saying is that there might be enough bad apples here to move the needle (maybe say, 1 in 10? instead of your 1 in 1000?) Clearly though I could just have a short term knack for picking rotten fruit.

rawraw

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Re: New LC Filter for Monthly Income
« Reply #6 on: March 04, 2014, 07:59:11 PM »
Yea, I think there is a benefit to be had.  But the bigger your account, the less likely it is you can use it

Bohb Daishi

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Re: New LC Filter for Monthly Income
« Reply #7 on: March 05, 2014, 04:06:05 AM »
But loans like the 2 listed below really boggle my mind. I just don't understand how someone can need to take out a loan for 6k who earns 20k a month.

20k doesn't sound as bad when the person has terrible spending habits. For example:

+20,000 start
-8,000 taxes (40% rate assumed)
-2,000 401k (assume that they max it)
-3,000 mortgage
-1,500 car payment + insurance + gas
-1,000 food (family of 4)
-400 telecom/utilities (electric, cable, cell phone, etc)

After those base costs, this leaves them with $4,100 leftover each month to take care of the kids and to buy all the "nonessential" things in life, like ipads, fancy vacations, a cabin, a boat, etc...
There are three ways to make a living in this business: be first, be smarter, or cheat.