P2P Lending / NFT Lending Forum

This should be fixed now.   We had a problem importing listing data for some boolean values.   This was only a problem with historical data because of a conversion issue when saving to the database, but it should be resolved now.   Thanks for the heads up.

I believe the discrepancy is servicing fees and that whatever page you are looking at on Lending Clubs website is showing raw performance of the loans, not what an investor received.

The NSR calculation includes a 1% servicing fee to show the return that a typical investor would actually see and this is probably why all of the NSR numbers are lower.

https://forum.lendacademy.com/index.php?topic=3126.msg28258#msg88888888Quote"> from: rawraw on March 25, 2015, 05:24:52 PM

https://forum.lendacademy.com/index.php?topic=2872.msg26128#msg88888888Quote"> from: VirginiaBob on December 12, 2014, 12:39:04 PM

https://forum.lendacademy.com/index.php?topic=2427.msg21379#msg88888888Quote"> from: Rob L on July 23, 2014, 10:32:21 AM

The loss rate is a combination of forward looking math to support loss estimates and displaying results as a yearly ROI, not fixed.   The simplest example is a loan that makes 10% in the first 6 months.  This puts you on track to make a yearly ROI of 20%.  The same forwarding looking logic gets applied to losses.  So if you had a loan that defaults at 6 months which causes you to lose 90% of your investment, that puts you on track to lose 180% for the year.

The idea in both scenarios is that you are multiplying up your losses as well your gains in order to extrapolate an estimated ROI at a yearly rate.  Similarly if you had a 24 month loan that returned you 40% on your investment, it only has a yearly ROI of 20%.  This is an oversimplification, but at a high level it is what is occurring.

When looking at a single loan it might not make a lot of sense to do this, but that isn't what we are trying to do.  We want to come up with an estimated yearly ROI for a pool of loans, and this is when it starts to make more sense.  When a pool of loans are put together you dollar weight and time weight the yearly ROIs in order to come up with an estimated return for the entire portfolio.  This is when the loss rates of over 100% help.  In this pool of loans if you have a couple loans that charge off real early, that implies a high charge of rate and that you will have other loans charge off early and you need to capture that in your estimate.  The forward looking loss rate of over 100% gets averaged in and takes this into account creating a higher rate of loss for the entire portfolio from these early charge offs.

---

The completed flag in our system doesn't mean what you think it means.  It is an indication that a loan is older then its term.  So a 36 month loan originated over 36 months ago is completed.  It doesn't take into account anything else.  The use case for this feature is different then trying to find all loans that are in a certain state.  You should be able to filter on status to get all loans that are charged off and finished making payments if that is what you are trying to do.

Firefox is my primary browser and I can't recreate the problem either.

I did notice an amazing coincidence though.  If you select the "analytics" menu item, it covers up the first handful of loss estimate boxes.  So it is possible your browser is not properly rendering the menu in its hidden state over the loss estimate boxes and is preventing you from clicking them.  I don't know if you have some sort of plugin that could be mangling the javascript/css interaction and preventing this from working right on your box?  I haven't found any other machine that does this, and it is all third party javascript in use by a lot of people...

The way I look at it is that everything was in the whole loan program before, because large investors could come in and get 100% of any loan they wanted to almost instantly through the API and individuals had no shot at it.  This change created the fractional loan program so that some loans were set aside and the big investors were told they can't buy 100% of those loans that are set aside.

If you look at this change as Prosper setting aside loans that only large investors have access to then yea it seems unfair, but in reality that is not the case.  The large investors had access to 100% of any loan they wanted before this change, and they were starting to take advantage of it.  Without this set aside of fractional notes the pickings would probably be even worse than they are now.

I am not saying it wouldn't have been better if Prosper had put a 75% cap on all loans, but at least putting the cap on some is better than none.

https://forum.lendacademy.com/index.php?topic=1133.msg7571#msg88888888Quote"> from: agd on May 24, 2013, 12:27:23 PM

Also, there is an "Active Listings" tab on the search results page which runs your search criteria against the active listings on Prosper.  So if you search for blenders and click this tab you will see the active Prosper listings that you can invest in where the borrow is a blender.