Title: LC just increased loan limit from 35k to 40k
Post by: Ran on March 03, 2016, 11:00:00 PM
Post by: Ran on March 03, 2016, 11:00:00 PM
Nice move
Title: LC just increased loan limit from 35k to 40k
Post by: hzhou9 on March 03, 2016, 11:00:00 PM
Post by: hzhou9 on March 03, 2016, 11:00:00 PM
Why is this good 
?
?
Title: LC just increased loan limit from 35k to 40k
Post by: Small Fish Big Pond on March 04, 2016, 11:00:00 PM
Post by: Small Fish Big Pond on March 04, 2016, 11:00:00 PM
+1 Don't see any sense to it, unless LC is going to market it against Prosper? Anybody have any data how on many loans are 35k now?
Title: LC just increased loan limit from 35k to 40k
Post by: yojoakak on March 04, 2016, 11:00:00 PM
Post by: yojoakak on March 04, 2016, 11:00:00 PM
Inflation, yo!
Thanks NObama.
Thanks NObama.
Title: LC just increased loan limit from 35k to 40k
Post by: sean3.eth on March 04, 2016, 11:00:00 PM
Post by: sean3.eth on March 04, 2016, 11:00:00 PM
I feel like the higher this number goes up, the higher the temptation to become a straight roller. Wiring 40 grand to someone's bank account with no collateral... and with Lending Club having no skin in the game. 
I don't know. I already didn't like 35k that much even if statistics show that borrowers on that level have performed well. 40k is starting to push it. If Lending Club were sending all of the proceeds to the outstanding creditors, that's one thing but 40k straight into a bank account. Wow!
I don't know. I already didn't like 35k that much even if statistics show that borrowers on that level have performed well. 40k is starting to push it. If Lending Club were sending all of the proceeds to the outstanding creditors, that's one thing but 40k straight into a bank account. Wow!
Title: LC just increased loan limit from 35k to 40k
Post by: Fred93 on March 04, 2016, 11:00:00 PM
Post by: Fred93 on March 04, 2016, 11:00:00 PM
Title: LC just increased loan limit from 35k to 40k
Post by: PhilGD on March 04, 2016, 11:00:00 PM
Post by: PhilGD on March 04, 2016, 11:00:00 PM
Has Lending Club previously offered loans larger than 35k as part of their "policy 2" program?
I wonder how they adjust their underwriting when they roll out a new product like this. Presumably there isn't much historical data out there on >35k personal loans.
I wonder how they adjust their underwriting when they roll out a new product like this. Presumably there isn't much historical data out there on >35k personal loans.
Title: LC just increased loan limit from 35k to 40k
Post by: Fred on March 05, 2016, 11:00:00 PM
Post by: Fred on March 05, 2016, 11:00:00 PM
The 35k loans being more likely to default is anecdotal.
Below are some statistics of loans by their original amount, and the percentages of the amount bracket to be charged-off.
Seems loans in the [26,000.01-27k] bracket is the most likely to charge off; while the [34k-35k] bracket is among the least likely.
Below are some statistics of loans by their original amount, and the percentages of the amount bracket to be charged-off.
Seems loans in the [26,000.01-27k] bracket is the most likely to charge off; while the [34k-35k] bracket is among the least likely.
Title: LC just increased loan limit from 35k to 40k
Post by: TravelingPennies on March 05, 2016, 11:00:00 PM
Post by: TravelingPennies on March 05, 2016, 11:00:00 PM
Title: LC just increased loan limit from 35k to 40k
Post by: Rob L on March 05, 2016, 11:00:00 PM
Post by: Rob L on March 05, 2016, 11:00:00 PM
Cherry picking loans that are an even multiple of $5,000 looks pretty good.
Bryce recently noted in another thread that univariate analysis alone was pretty worthless.
Of course you gotta do it in the first place to select a set of parameters for your model.
That said, I wonder if this $5k multiple parameter as a model factor would make any significant improvement to the model performance.
Perhaps some models yes and others no. Your mileage will vary.
Bryce recently noted in another thread that univariate analysis alone was pretty worthless.
Of course you gotta do it in the first place to select a set of parameters for your model.
That said, I wonder if this $5k multiple parameter as a model factor would make any significant improvement to the model performance.
Perhaps some models yes and others no. Your mileage will vary.
Title: LC just increased loan limit from 35k to 40k
Post by: TravelingPennies on March 05, 2016, 11:00:00 PM
Post by: TravelingPennies on March 05, 2016, 11:00:00 PM
Title: LC just increased loan limit from 35k to 40k
Post by: TravelingPennies on March 06, 2016, 11:00:00 PM
Post by: TravelingPennies on March 06, 2016, 11:00:00 PM
Title: LC just increased loan limit from 35k to 40k
Post by: thezfunk on March 06, 2016, 11:00:00 PM
Post by: thezfunk on March 06, 2016, 11:00:00 PM
I bet they are trying to stay competitive by matching offerings such as:
http://www.homedepot.com/c/Project_Loan
and
http://www.greenskycredit.com/
http://www.homedepot.com/c/Project_Loan
and
http://www.greenskycredit.com/
Title: LC just increased loan limit from 35k to 40k
Post by: TravelingPennies on March 07, 2016, 11:00:00 PM
Post by: TravelingPennies on March 07, 2016, 11:00:00 PM
Title: LC just increased loan limit from 35k to 40k
Post by: Lovinglifestyle on March 07, 2016, 11:00:00 PM
Post by: Lovinglifestyle on March 07, 2016, 11:00:00 PM
Thank you, Fred, for the table. It's a handy reference!