Clicky

  • Welcome to P2P Lending / NFT Lending Forum.
 

ETH.LOAN

News:

This was the original Lend Academy peer-to-peer lending forum, since forensically restored by deBanked and now reintroduced to eth.loan.

To restore access to your user account, email [email protected]. We apologize for errors you may experience during the recovery.

Main Menu
NEW LOANS:   | 804.eth 2.500 Ξ | remoraid.eth 0.299 Ξ | remoraid.eth 0.299 Ξ | ALL

Menu

Show posts

This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.

Show posts Menu

Messages - AnilG

#286
PeerCube / Is Income Verified?
December 31, 1969, 06:00:00 PM
There are quite a few attributes listed on filter page that are not part of historical loan data file provided by Lending Club. "Is Income Verified" and "Employment Status" are two such attributes. Selecting different options for these attributes will not have any impact on the calculated historical performance.

Thanks for bringing attention to it. I need to update the site to clarify this information for other users who might be wondering same.
#287
Investors - LC / "A" rated loans are last to be funded?
December 31, 1969, 06:00:00 PM
#288
Investors - LC / Borrowers with >$20,000/month Income
December 31, 1969, 06:00:00 PM
#289
Suggestions / Verification questions
December 31, 1969, 06:00:00 PM
I recently removed Google reCaptcha from PeerCube registration as several PeerCube users pointed out that it was almost impossible to read/listen. It appears reCaptcha made it tougher after the last crack. Now it is becoming difficult for even humans to read. I rather deal with spam than make difficult for users to use site.

https://forum.lendacademy.com/index.php?topic=591.msg2384#msg88888888Quote"> from: rawraw on January 04, 2013, 07:07:44 AM
#290
Investors - LC / Verified salary?
December 31, 1969, 06:00:00 PM
According to prospectus, in past 12 months only 60% of borrowers either had employment or income verified. Based on the info that only 60% of requested borrowers satisfactorily respond to verification, you can assume only 36% of borrowers listed are honest and 64% fudge the employment or income information.

https://www.lendingclub.com/fileDownload.action?file=Clean_As_Filed_20121128.pdf&type=docs" class="bbc_link" target="_blank">https://www.lendingclub.com/fileDownload.action?file=Clean_As_Filed_20121128.pdf&type=docs

"Approximately 60% of the applicants during the 12-months ended September 30, 2012 had their employment or income verified by us by requiring the borrower to submit paystubs, IRS Forms W-2 or other tax records between the initial posting of a loan request and the issuance of a Member Loan."

"For the year ended June 30, 2012 of the borrower members undergoing income or employment verification:
• approximately 60% of requested borrowers provided us with satisfactory responses;
• approximately 8.4% of these borrowers withdrew their applications for loans; and
• approximately 31.6% of these borrowers either failed to respond to our request in full or provided information that failed to verify their stated information."
#291
This is the reason I advise people to stay away from FolioFN. It's state is no different than Prosper 1.0 where lenders were stepping over each other and driving interest rate lower in hopes to attract the borrower. In the end, lenders landed up getting burnt and Prosper reputation was tarnished because of lenders' own greed.

Using comparable to price the note is not a good idea unless market was efficient which FolioFn is not. I will encourage you to read Freakonomics where authors discuss use of comparable in real estate market.

The key with listing notes in the secondary market is to determine intrinsic value of notes at the time of listing notes on Foliofn. Use Time Value of Money and Discounted Cash Flow concepts to price the notes. Spend more time figuring out what will be default probability of your note and accordingly discount the note. If note doesn't sell at that price, eat the note. Don't start reducing the price until someone bites, it is only race to the bottom.

Also, you will come out ahead by eating some notes than sell all notes at deep discount. Remember not all troubled notes will default. Instead of getting rid of all troubled notes at any cost, try to do some math to figure out whether you will come out ahead as a whole by eating a few notes.

https://forum.lendacademy.com/index.php?topic=619.msg2607#msg88888888Quote"> from: New Jersey Guy on January 09, 2013, 08:59:01 PM
#292
Investors - LC / Feedback on Lending Club Business
December 31, 1969, 06:00:00 PM
This forum is DIY types so you are not likely to get a positive response. You will be better off targeting institutions, investment advisors, and hands-off high net worth individuals.

I think you have potential opportunity with both 1 and 2. The #2 will require you to be RIA with the state. The #1 will likely work if the newsletter is daily as loans fill up quickly and targets investment advisors. You can also consider offering your services as consultant. The P2P industry is still very new, as the industry grows I am sure more 'services' opportunities will come up.

I run PeerCube http://www.peercube.com" class="bbc_link" target="_blank">http://www.peercube.com, a Lending Club loan selection platform and quantitatively analyze Lending Club loan data on my blog Random Thoughts http://andirog.blogspot.com" class="bbc_link" target="_blank">http://andirog.blogspot.com. Last year, I was approached by both institutions and high net worth people to consult.

Send me a PM through PeerCube or my blog if you want to discuss more.


https://forum.lendacademy.com/index.php?topic=616.msg2587#msg88888888Quote"> from: flojoflojo on January 09, 2013, 01:12:13 PM
#293
Investors - LC / Borrowers with >$20,000/month Income
December 31, 1969, 06:00:00 PM
There are currently 14 loans available where borrower indicated monthly income greater than $20,000. Historically, such loans have much lower default rate and higher return on investment. So, I don't worry about someone claiming higher income and if it is not verified. As long as other factors such as mortgage, total debt, low credit utilization, and clean credit record line up, I will lend.
#294
It will be reckless for Lending Club or Prosper to do something like that. Consider the risk of getting discovered by an auditor and criminal repercussions to the Executives. There are easier way to chip pennies off the top by taking little bit longer to pay lenders after receiving payment from borrowers instead of doing something as outlandish and criminal as falsifying records.
#295
Introductions / Welcome to the Lend Academy Forum
December 31, 1969, 06:00:00 PM
After Lending Club IPO's, you will be able to invest on main LC platform. In the mean time, have you considered collaborating with a friend/family member who lives in a state that allows purchasing notes on main platform? They can buy notes on main platform and then list notes on secondary market for you to pickup. Just an idea to get around state restrictions, of course at little extra cost and hassle.

https://forum.lendacademy.com/index.php?topic=529.msg2028#msg88888888Quote"> from: JimPHL on December 26, 2012, 02:12:43 PM
#296
I discovered peer to peer lending through a classmate in my Executive MBA class. Then I discovered Lending Club historical loan data that I used for Statistics Class Project. i later used Lending Club financial statements for my Corporate Finance class assignments.

We were looking for annuity-style investment that can generate regular monthly cash flow and also allow us to invest over time. We wanted to put the monthly mortgage payments that had freed up after paying off mortgage toward such investment. Most annuities and CDs required lump-sum large investment upfront. With the knowledge I had about Lending Club, it became obvious choice and also met our objective. Then it was just a matter of convincing Mrs RT that p2p lending is not a crazy scheme.

Though in the end we split the mortgage payments between Lending Club, Prosper and I-series treasury bonds.
#297
The new link for the latest version of browse notes file is https://www.lendingclub.com/browse/browseNotesRawDataV4.action" class="bbc_link" target="_blank">https://www.lendingclub.com/browse/browseNotesRawDataV4.action. The link quoted below will give you browse notes file that doesn't have the six new parameters.

https://forum.lendacademy.com/index.php?topic=501.msg1469#msg88888888Quote"> from: viking on November 27, 2012, 02:41:09 PM
#298
I came back from a great vacation Sunday to find that Lending Club started providing seven additional data points in loan files. Today, I am happy to announce that this new information is now available on PeerCube on Loan Details page. The new data points are:

  • Initial List Expiration Date
  • Public Record Bankruptcies
  • Accounts ever 120+ days past due
  • Charge-offs within 12 months
  • Collections in 12 months excl medical
  • Tax liens
  • Months since most recent 90+ day rating

Also, now you are able to specify amount and invest directly from Loan Details page.
#299
Investors - LC / Developing a loan filter strategy?
October 28, 2012, 11:00:00 PM
Backtesting using the historical loan data is the way to go. Statistics, data mining, and pattern recognition can help in identifying important and combinations of factors.

In my opinion, there are two type of analysis. One where someone throws different algorithms at set of data and sees what comes out. The blogger who used genetic algorithm on LC historical data will be in this camp. Second where someone explores the data first to understand what different factors are,  how they are related and impact the results. I am in the second camp as I prefer to understand the factors and explore the relationships before developing quantitative models. If you are interested in learning Statistics more, I will recommend to start with textbook "Practical Business Statistics" by my stats professor Andrew Siegel.

Some of the important factors for lowering defaults based on my analysis are Loan Grade, Interest Rate, Borrower's Location, Loan Purpose (impact declining with time as I believe borrowers are manipulating it), Revolving Credit Utilization, Monthly payment to monthly income ratio, and Months since last delinquency and public record.

You may also want to check out my blog Random Thoughts at http://andirog.blogspot.com" class="bbc_link" target="_blank">http://andirog.blogspot.com  where I have been exploring different factors and its impact on defaults. As a conservative contrarian investor, I am biased toward reducing risk first and then maximizing return second. Based on prior research in consumer lending, recently I introduced BLE Risk Index (BLE = Bad Loan Experience) on my blog and at PeerCube. Also, if you are interested in reviewing loans available through filters created by others, you may want to check out Peer Filters on PeerCube at http://www.peercube.com/lc/peerfilter" class="bbc_link" target="_blank">http://www.peercube.com/lc/peerfilter. I continue to add new filters as I find them online and also encourage users to share their filters. Also, if you share your filter and send me a note to request analysis, I will be happy to analyze and publish findings on my blog and at PeerCube.
#300
Investors - LC / Lending Club All Notes File Size
October 25, 2012, 11:00:00 PM
Google Spreadsheet and Apple Numbers can't handle loanstats file either, not sure about OpenOffice.

LC statistics files are CSV files so you can open them in WordPad and delete the rows you don't want and save them again as plain text file with CSV extension.

If you know scripting/programming you could automatically break the CSV file. I import loanstats CSV file on PeerCube by programmatically breaking the file.

Also, look into Google Fusion Table. It may be able to handle large data set.