That's interesting because that exact question came to my mind again today.
Also, looking at the bolus of new loans to hit the platform made me wonder if any of their approval criteria could have changed or if it's just due to the post-holiday consolidation rush. It's most likely the latter in my opinion.
I believe I read somewhere in the past that it's supposedly random in the initial whole/fractional assignment. I'd love to see some data but it will take some time for notes in both categories to season in order for any conclusions to begin to be drawn regarding the possibility of higher quality loans being preferentially designated.
To me, it seems against Lending Club's best interest to engage in such an endeavor. I doubt they'd risk losing retail investor confidence to such a degree over something like that, but we'll see!
Also, looking at the bolus of new loans to hit the platform made me wonder if any of their approval criteria could have changed or if it's just due to the post-holiday consolidation rush. It's most likely the latter in my opinion.
I believe I read somewhere in the past that it's supposedly random in the initial whole/fractional assignment. I'd love to see some data but it will take some time for notes in both categories to season in order for any conclusions to begin to be drawn regarding the possibility of higher quality loans being preferentially designated.
To me, it seems against Lending Club's best interest to engage in such an endeavor. I doubt they'd risk losing retail investor confidence to such a degree over something like that, but we'll see!