I read in a number of LC's public docs that service fees vary by investment channel. From one of the recent 10-Qs:
"Note investors generally pay us a servicing fee equal to 1% of payment amounts received from the borrower. Whole loan purchasers pay a monthly servicing fee of up to 1.3% per annum of the month-end principal balance of loans serviced. Certificate holders do not pay a servicing fee, but pay a monthly management fee of up to 1.5% per annum of the month-end balance of assets under management."
I've been collecting data from the API, and the actual service fee rates (averages) look like this:
I'm puzzled about how this corresponds to the written policy. Fees on F look to be significantly lower than 1%, and W fees are even lower. Can someone explain?
Here is an example I just looked at via my payments today via this display:
https://www.lendingclub.com/account/getLenderActivity.action#The one % is calculated accurate on the values displayed on my mouse overs.
0.7992717332 Principle from display
0.0991568382 Interest from display
0.9975854096 Total calculated
0.008984285714 One % via my calc
0.0089842857 One % via LC from display
The reason these numbers don't agree is that they are different things. Much like your local temperature and barometric pressure.
I heard a rumor that LC was in the trial phase of a new category; "Tripartite"; loans split into three equal amounts.
The new "T" class loans would facilitate secutitization for micro banks, and we should shortly begin to see loan classes WTF in the future.