P2P Lending / NFT Lending Forum

Received the following email from Lending Robot today- really annoyed 
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We are temporarily suspending our secondary market automated trading feature, as we have noticed issues with performance. This causes some slowdown on our servers, which are not really justified because the trading volume is still very low. Any sales currently listed will run until the last remaining days of active sales. Recurring sales will not be set to recur as we disable the secondary market trading feature.

Naturally, you can still trade on the Lending Club's secondary market manually, by visiting the Lending Club site.

We apologize for any inconvenience this may cause you. We understand it can be frustrating, but also believe it will ultimately help us serve you better.

Regards,
The LendingRobotTeam
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Hoping they fix this fast.

So they are seeing this as an issue with FOLIO bogging down their servers?
LR does not let you handpick notes if I remember right? I think that is why I never used them.
That sucks though with the volume that you deal with. I am sure you will not use NSR as believe you can only hand pick. PeerCube?

Not sure exactly how they see this- if it's on their side or on Folio- I plan to email them later tonight and ask some pointed questions.

Bigger issue I have right now is my plans to liquidate- it was going reasonably well. Now it's going to become a lot more manual, and worse off- I was selling notes at somewhat of a markup via LR. Now that won't happen.

I think depending on their answers I may hold off on the liquidation efforts. If they say that they'll have it fixed shortly- I can wait. If they don't have an answer....

I'm already seeing the effect in my IRA account- it's got $2k in cash right now not going anywhere and will build up quickly. My new note criteria is extremely tight given the recent quality issues, and the building cash balance reflects that. My plan was to keep my IRA investing to minimize the losses until I liquidated my taxable account so I could apply the lessons learned to liquidate it as quickly and efficiently as possible.

If the balance gets too big I may have to manually purchase from Folio. 

The LR folio tools are the main reason I use LR.

Please communicate your plans to fix this so I do not need to leave the platform.

from: toben88 on July 13, 2017, 11:28:24 AM

I emailed them yesterday and have not received a reply yet. I would encourage everyone to ask them the same questions I did.

1.  Is this temporary?
2. If so, when will it be fixed?
3. Since they are a paid service, what credit will you get since all services are not being provided?

I understand that the suspension of trading on LC's secondary market can be frustrating.
Please be assured that we spent literally months developing this, and the decision to suspend it wasn't taken lightly.

Unfortunately, at this stage, even constantly re-submitting orders with tens of servers, the service still did not perform as we'd like.
Hopefully in the future submitting orders will be cheaper/faster/more efficient and we'll be able to resume this feature, but we can't commit on a date for the moment being.

As a reminder, LendingRobot never charged anything for selling LC notes.

from: Emmanuel on July 14, 2017, 02:00:13 PM

from: Emmanuel on July 14, 2017, 02:00:13 PM

from: Emmanuel on July 14, 2017, 02:00:13 PM

I'll hazard a guess and say that's how they handle processing orders with a declining markup. But we'll wait and see what the official answer is.

The bottom line is likely, to be very kind, the "spartan" FolioFN API. Maybe its been enhanced since I used it a year ago, but back then there were only two end points; Buy and Sell. Everything else had to be done either by using the LC platform API or by direct URL access (GET/POST) to the LC or FolioFN platforms. This probably resulted in a very messy inefficient process that became untenable to LR when larger and larger numbers of FolioFn users came in. BTW, I think that to use URL access one must have full account credentials, not just API. Is this correct? If so then must Folio users of any 3rd party provide full account access credentials to them?

For example, obtaining the NEVERLATE status of a loan actually required re-submitting orders because it only exists in the secondarymarketall file. If a loan wasn't already in that file then the only solution I found (and implemented) was to list it at a extremely high markup, wait for it to show up in the file, obtain the NEVERLATE status, remove the highly priced sell order, calculate a real sales price based on NEVERLATE as well as other factors, and finally re-list. What a mess. Hugely inefficient and all because NEVERLATE is not in the mynotes file. In hindsight I would have been better off simply assuming NEVERLATE true. The result would be a few overpriced not NEVERLATE loans that would not sell and I could have dealt with manually.

I don't believe issue is the "spartan" Folio API. It is the perverse incentive that a selling strategy based on automatically reducing price with time creates, the type of sellers it attracts, and the unintended consequences. I normally don't like to engage in discussions on other services forum section. Posts in these sections are for service owners to address and discuss. But I am happy to have more discussion in Foliofn-LC section if you start a thread about it.

BTW, the size of all notes listing file have been increasing rapidly recently. It is possible LC noticed the issue of excessive listings and reached out to Emannuel about it. I have no inside knowledge or insight into it, just a guess based on change in Folio listings file size before and after the suspension.

from: Rob L on July 15, 2017, 11:18:02 AM

from: AnilG on July 15, 2017, 11:48:13 PM

I emailed LendingRobot asking them the following questions:

• When do you estimate the Secondary Market buy/sell functionality will be available again?
• What is the nature of the problem that led LendingRobot to halt secondary market trading?
• Is LendingRobot actively working to bring it back, or is secondary market trading effectively gone for good?

Their (not helpful, not satisfying) reply:
Quote

I can say I'm now prepared to leave Lending Robot if it comes to that. Checked all my settings over in Interest Radar and they are good to go. It should place sell orders for me this evening. As long as it does, I'm back in business. Not with the functionality that I want, but I'll get my time back. At this point that's all that really matters.

It really sucks that Lending Robot has been radio silent on the ongoing status of what (if anything) is being done to bring secondary market functionality back. I'd be willing to wait if there was ANY estimate of when things may be resolved. No status = no patience.

In lieu of an update, I'll be hitting the Close Account button on the 5th.   

from: dr.everett on July 20, 2017, 08:22:28 PM

from: .Ryan. on July 21, 2017, 12:30:01 AM

So it's getting down to the end of the month- after putting some additional thought into things- I'm going to close my LR account on the 31st- it coincides with the end of the month and then that way there's no chance of being billed for the next month.

Still haven't heard any meaningful updates- I'm disappointed. That said my sales on Interest Radar are working again and I have my time back. If/When LR does get secondary working again I'll come back, assuming I haven't finished my liquidation by then.

Good luck to those remaining. As others have said I've been very happy up to this point. Losing secondary was the straw that broke the camel's back.

Don't know if anyone is still reading this- pulled the trigger last night & closed my LR account. Good luck to those remaining. Might be back when secondary returns unless I've managed to liquidate my accounts by then.

Hey, I'm still reading but I've well advertised I'm "already gone" in the Eagles sense.
My guess is that we lenders aren't the only ones hurting here but it's the whole LC/Prosper/P2P-MPL ecosystem (including LR).

I sent the following followup email to Lending Robot the day before the NSR/LR announcement was made.  Here's the reply I recieved yesterday:

My message:
Quote

Thanks for sharing the update.

Well I guess this answer is better than no answer.

Can anyone comment on the foliofn tools that NSR has? Are there any?