Official email today Folio investing will be discontinued on August 28th. Very bad news for anyone that uses folio to buy/sale. I've sold off around ~160K over the last year to liquidate my account. so happy I was able to get out while I had the chance.
"An Update on Folio
As a Folio account holder, you know that historically Folio Investments, Inc. (Folio) has offered a secondary market for Notes, where individuals could buy and sell Notes to and from other investors. LendingClub was recently notified that Folio is being acquired by a financial institution and, as a result, the secondary market for Notes will be discontinued.
Please know that the closure of the secondary market will not affect the Note investments in your LendingClub account, and your LendingClub account will continue to be serviced as usual.
Should you wish to buy or sell Notes on the secondary market, please keep these key dates in mind:
August 26, 2020: The last day you will be able to list a Note for sale. Any remaining Note listings on the trading platform at the end of the day will expire or terminate. Any trades executed on August 26, 2020 will settle in accordance with standard settlement procedures on August 27, 2020.
August 28, 2020: Investor account(s) with Folio for trading Notes will be closed, after which you will be able to log in to view statements and legal agreements only.
While most investors consider Notes to be part of their buy-and-hold long-term investment strategy, we understand that the secondary market has provided a valuable option to those who needed it. We're disappointed in the decision and understand that investors who actively trade Notes will be disappointed too. Because the secondary market has always been offered by a third party, we unfortunately do not control its availability."
This absolutely sucks. Invested a lot of time and money building out a note buying algo and was finally just starting to turn profitable. What a disappointment.
LC does have a secondary market. It is for "institutions only". They told me I'd have to form an LLC to go further. I found this would cost me a lot of money. State of CA has a fee to form an LLC and an annual tax, and I'd have to pay an accountant to make another tax return every year. I figured a few thousand a year. I did not proceed.
The Foliofn web site now says the ending date is 8/26, which business day has ended. The API stopped working at 15:20PM PDT.
Foliofn is dead.
I think I was fortunate. In the three short weeks we were given, I managed to liquidate everything besides hardship loans (~30), <120 days remaining (~30), and headed down the path towards default/charge off (~15). Roughly $3,500 sold and $350 remaining. Now time to transfer and combine the accounts into one which I currently hold $6,600 in (taxable). I'll still work it there for awhile and see how things play out over the next year or so to see if LC makes any kind of comeback. Otherwise, I'll just let it bleed out a slow painful death.
Current holdings of the account I am keeping open (before transfer of other accounts assets into it):
My Notes at-a-Glance 2582
Not Yet Issued 0
Issued & Current 799
In Grace Period 11
Fully Paid 1,455
Late 16 - 30 Days 6
Late 31 - 120 Days 15
Default 1
Charged Off 295
Cancelled & Cancelling 0
Any idea the policy on dormant taxable accounts with zero active notes and holding only charged off notes?
I don't think they care. I left my account dormant for 2-3 years before investing any new money.
Is the institutional secondary market similar to Folio (listing loans, self service by institutions) or it is just someone at LC or 3rd party when approached by seller finds buyers? I recall few years ago there was a third party that was doing this with LC loans for institutions.