Title: LC new interest rates July 2019
Post by: Fred93 on July 08, 2019, 11:00:00 PM
Post by: Fred93 on July 08, 2019, 11:00:00 PM
LC adjusted their interest rates as of 7/6/19, and has announced that there will be no more E loans. (They had previously killed off F&G loans tho they continued to publish interest rates for these nonexistent loans, so I plotted them.)
I've updated my interest rate charts. Here is the recent history of LC interest rates vs time...
You can see that they've discontinued E, and spread out the D interest rates to cover the territory previously occupied by E loans. A few years ago when they were pushing for volume, they degraded the quality of E,F,G loans so that they were no longer a good investment. D loans are more like what E loans were a few years ago.
They also increased (a little bit) the interest rates in B and C.
One bizarre detail... They did not increase the D1 rate. C5 and D1 are now almost exactly the same rate. This looks very strange, but there is a clue. Note that the D1 rate has been stuck at 17.97% for the last few update cycles. That's just barely below 18%. My guess is that there is some state with an 18% limit, and they're holding back on D1 artificially to keep it under the limit.
Another way to look at this data is to draw curves vs grade. Its difficult to follow which curve is which, but the most recent yellow curve sticks out clearly. The D1 kink also sticks out clearly.
I've updated my interest rate charts. Here is the recent history of LC interest rates vs time...
You can see that they've discontinued E, and spread out the D interest rates to cover the territory previously occupied by E loans. A few years ago when they were pushing for volume, they degraded the quality of E,F,G loans so that they were no longer a good investment. D loans are more like what E loans were a few years ago.
They also increased (a little bit) the interest rates in B and C.
One bizarre detail... They did not increase the D1 rate. C5 and D1 are now almost exactly the same rate. This looks very strange, but there is a clue. Note that the D1 rate has been stuck at 17.97% for the last few update cycles. That's just barely below 18%. My guess is that there is some state with an 18% limit, and they're holding back on D1 artificially to keep it under the limit.
Another way to look at this data is to draw curves vs grade. Its difficult to follow which curve is which, but the most recent yellow curve sticks out clearly. The D1 kink also sticks out clearly.
Title: LC new interest rates July 2019
Post by: LiKenun on July 08, 2019, 11:00:00 PM
Post by: LiKenun on July 08, 2019, 11:00:00 PM
Wow! That's some interesting history there.
Title: LC new interest rates July 2019
Post by: MarinBB on July 12, 2019, 11:00:00 PM
Post by: MarinBB on July 12, 2019, 11:00:00 PM
This is really cool, thanks for keeping track over time.
Title: LC new interest rates July 2019
Post by: James Adams on July 14, 2019, 11:00:00 PM
Post by: James Adams on July 14, 2019, 11:00:00 PM
Thank you for updates. It's a good info, and was really helpful.
Title: LC new interest rates July 2019
Post by: investny on August 06, 2019, 11:00:00 PM
Post by: investny on August 06, 2019, 11:00:00 PM
"effective August 6, 2019, we are increasing rates for Grade D by on average, 50 basis points."
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