P2P Lending / NFT Lending Forum

Between prosper 1.0 and early LC loans, we already have enough idea how marketplace lending will perform. The lenders who invested in loans issued in last couple of years will be hosed. Once market settles down at a low, lenders who invest in new loans will have excess returns as economy recovers. The underlying assumption is that credit criteria tightens during recession and loosens during good times.

About time, but most probably not good for retail lenders, as they may be phased out, with cheap access to deposit capital.

Chinese p2p lenders are not failing, they are being killed. I haven't seen any data to show these lenders had unsustainable default rates or lack of lending capital that a typical non-regulator driven failure would have. Non-banking lenders and shadow lenders are primary lenders for majority of people. IMO, crackdown is politically driven, the banking lenders being politically connected and influential, regulators are doing their bidding. Majority of non-banking lenders being killed were smaller entities with regional coverage. When there are few thousand lenders, you are bound to have some failures. I don't believe non-regulator driven failure rate in China is that much different than US and European failures.

Particularly in US, smaller lenders never got the foothold because regulations were already stacked against them. There is no way even larger players like Lending Club and Prosper could compete against GS backed Marcus and other banking lenders. Established financial institutions have large enough regulatory moat to protect their business.

I use Treasury Direct (TD) to buy "no secondary market" treasury bonds, primarily I-series and EE-series. For T-bills and other T-bonds, and for bonds with secondary market, I use Fidelity.

Currently, I don't think LC or other lenders use tax return to decide whether to issue loan or not. Competition is too much to decline borrowers right now. The request for tax return document is just extra data capture to use as training data to improve credit models in the future.

No fee, no bad loans, crypto, setting your own interest rate, borrowing and paying interest. Yeah, I am selling a bridge too, do you want to buy. I read such bullshit and shake my head on stupidity of people.  Such people deserved to be scammed.

Looks like I ruffled some feathers. Crossed out the sentences that may offend sensitive people. But gist of the post still stands, if it sounds too good to be true it most probably is. Forum is filled with posts  complaining even about legitimate services like LendingClub and Prosper. What makes anyone think these fly by night operators can do better is beyond me.

https://www.washingtonpost.com/business/2019/11/21/personal-loans-are-growing-like-weed-potential-warning-sign-us-economy/" class="bbc_link" target="_blank">https://www.washingtonpost.com/business/2019/11/21/personal-loans-are-growing-like-weed-potential-warning-sign-us-economy/

Implications for Peer to peer lending?

I don't believe you can sell whole loan on folio. Iirc, Whole loans are not issued as notes. Whole loans are usually sold in package as private transaction. You will need lending club blessing to change the ownership of whole loans. During the hay days, there was a broker service that facilitated whole loan package transaction, I can't recall the name now.

The highest outstanding principal on a note listed on folio recently was in $7,000 range.

The borrowers are still real people. How are you helping banks and Wall Street and not real people? Banks and Wall Street are fellow lenders. I don't see you lending or not lending to borrowers has anything to do with helping or not helping banks or Wall Street. Nothing has changed from that "giving" perspective, IMO.

https://forum.lendacademy.com/index.php?topic=21580.msg61359#msg88888888Quote"> from: kib on October 22, 2019, 11:21:44 AM

This is an unfortunate situation for small investors. Unfortunately, no one will do the right thing for investors like you. Everyone, even in receivership, is looking out for themselves and how much they can extract out of the situation for their personal gains.

Sorry, I wish there was much anyone on this forum could do to help investors like you.

My blog posts from 2014 about time to find might be of interest to you.

https://www.peercube.com/blog/post/mad-rush-at-lending-club-loan-release-time-part-i" class="bbc_link" target="_blank">https://www.peercube.com/blog/post/mad-rush-at-lending-club-loan-release-time-part-i
Mad Rush at Lending Club Loan Release Time: Part I


https://forum.lendacademy.com/index.php?topic=18575.msg58284#msg88888888Quote"> from: Scott S on September 03, 2019, 08:52:55 AM

You are misunderstanding the data included in payment history file. Payment history file doesn't contain all payment transactions that occurr with each loan. It only contains the aggregate monthly payment received/not received, status and amounts at the end of month for each loan. There could be multiple transactions in a month for a loan, but the payment file will aggregate them and present them as that month's data. Similarly, if loan status changes during the month and then reverts again within same month, payment file will not show that change.

If you look at payment history for your loan carefully, you will notice that only Once loan status carried over from one month to next, so it showed up in the monthly payment file. The other late status were settled within the same month so they never showed up as loan status at the end of the month.

https://forum.lendacademy.com/index.php?topic=5025.msg44484#msg88888888Quote"> from: mark78 on March 26, 2019, 01:48:45 AM

I didn't see much discussion about DLI blowing up. It doesn't look good for the fund. Those who invested in DLI, what kind of communications are you getting from the fund, if any?

Direct Lending Fund Sued for Allegedly Inflating Returns
https://www.bloomberg.com/news/articles/2019-03-25/direct-lending-fund-sued-by-sec-for-allegedly-inflating-returns" class="bbc_link" target="_blank">https://www.bloomberg.com/news/articles/2019-03-25/direct-lending-fund-sued-by-sec-for-allegedly-inflating-returns

Direct Lending Fund Founder Resigns Amid SEC Investigation
https://www.bloomberg.com/news/articles/2019-03-20/direct-lending-fund-founder-resigns-amid-sec-investigation" class="bbc_link" target="_blank">https://www.bloomberg.com/news/articles/2019-03-20/direct-lending-fund-founder-resigns-amid-sec-investigation

Thanks for update. What is the interest rate range or average interest rate of loans you are lending to LC vs Prosper vs Upstart? The loans with lower interest rate (better quality/grade) tend to default slowly over extended period of time compared to high interest rate loans. I no longer collect Prosper loan data and didn't even realized Upstart is still in business so can't check their defaults with time. But this trend is quite evident between grades on Lending Club.

https://forum.lendacademy.com/index.php?topic=4828.msg44477#msg88888888Quote"> from: blueinvestchuck on March 20, 2019, 04:43:24 PM

Look at the chart below the one, you posted, on PeerCube, you will know the reason. There is not enough demand, since Oct of last year, LC has been self-funding the shortfall in loan funding.

https://forum.lendacademy.com/index.php?topic=4950.msg44461#msg88888888Quote"> from: investny on March 18, 2019, 03:03:19 AM