In February I noticed that my PRIME filters weren't working 100%. While they worked fine in the main platform, once it was assigned to PRIME, it stopped.
In this case I am using:
Inquiries in the last 6 months = 0
Loan Purpose
Location State
The Inquiries filter is not working and for a month I was buying loans that had 1-3 inquiries.
In speaking with LC they were able to duplicate the problem but had no solution except to suspend my Prime account until it was resolved which, as of today, still remains open.
So, did you ask for your money back on the non-conforming loans?
Wow! No excuse for the LC software faux pas, but whatever happens you might not be hurt too badly by the loss of the inquires = 0 filter.
My NSR returns (only 7 months age) are:
Inqiures ROI
0 10.78%
1 13.42%
2 11.84%
3 11.42%
>3 17.05%
It's pretty clear that, over time, LC has improved their model to compensate the lender for the additional risk by increasing the interest rate charged to borrowers with inquires > 0.
Inquires isn't the filter it appears to be when looking at past returns.
Rob how many notes are in each of those buckets? That could definitely make a difference as well.
Inqiures ROI # Notes
0 10.78% 1,742
1 13.42% 1,071
2 11.84% 418
3 11.42% 191
>3 17.05% 34
All except >3 statistically significant I should think.
What stats test are you using?
Does the business world not use the same p 0.05 threshold scientists use for significance?