P2P Lending / NFT Lending Forum

I'd give you $0.61 for it.         https://forum.lendacademy.com/Smileys/default/wink.gif" alt=";)" title="Wink" class="smiley" />

<---  This guy.

Both are fun and profitable.

https://forum.lendacademy.com/index.php?topic=1484.msg11247#msg88888888Quote"> from: core on August 24, 2013, 12:05:28 AM

https://forum.lendacademy.com/index.php?topic=1455.msg11126#msg88888888Quote"> from: core on August 23, 2013, 03:12:44 AM

Same.

Lost my order in progress, too! 

Solution: Dollar amount restriction per loan fraction (Investment limit per loan, per SSN).
Investors are limited to loan fractions of X amount of dollars, allowing for hundreds of investors to participate in a particular loan.

This would stem the tide, but only for a short period of time.  If the fraction restriction was set to $100, even on a $35,000 loan it could still be theoretically fully funded by just 350 investors.  This may seem like a good idea now, but it won't be long before thousands and tens of thousands of investors want the same note.  This is a Band-Aid solution and investors will find themselves with the same hyper-competitiveness as this asset class continues to grow.

Solution: Round Robin.
Loans are released and investors have 24 hours (or longer) to choose the loans in which they want to invest.  If there are more investors than possible fractions after a set time period, a randomized system leaves the investor with their "fair share" of notes for their loan selections of the day. 

I believe LC will eventually switch to continuous posting of new loans as they become submitted instead of four daily batches which will further necessitate having loans be available for selection for a set time period.

The Real Solution: Combine Investment Limit per Loan Fraction, a Round Robin System, and Stricter Whole & Fractional Pools by Investor Type as detailed above

https://forum.lendacademy.com/index.php?topic=1414.msg10333#msg88888888Quote"> from: mo on August 09, 2013, 12:41:47 PM

https://forum.lendacademy.com/index.php?topic=948.msg9990#msg88888888Quote"> from: brycemason on July 30, 2013, 10:28:39 AM

Nope, I do not think that is possible.  Well, technically it is possible.  I just don't think it's possible for you and me, however.     https://forum.lendacademy.com/Smileys/default/rolleyes.gif" alt="::)" title="Roll Eyes" class="smiley" />

It seems that Lending Club is initiating usage of their collection agency much sooner than before.  Historically, notes would have to be 60 or more (and sometimes 90) days late before going into collections.  Now, many notes that are freshly 31 days late are being sent to collections.
This seems to coincide around the same time they streamlined their payment processing times.

Anyone else notice this?

Certain institutional investors are insured against losses, all but guaranteeing that they will be profitable:



From the 10-K:

Contingencies

Credit Support Agreement

During the nine months ended December 31, 2012, the Company entered into a Credit Support Agreement with a Certificate investor. The Credit Support Agreement requires the Company to pledge and restrict cash in support of its contingent obligation to reimburse the investor for credit losses on Member Loans underlying the investor's Certificate, that are in excess of a specified, aggregate loss threshold. The Company is contingently obligated to pledge cash, not to exceed $3.0 million, to support this contingent obligation and which number is premised upon investor volume. As of December 31, 2012, approximately $2.3 million was pledged and restricted to support this contingent obligation.

As of December 31, 2012, the credit losses pertaining to the investor's Certificate have not exceeded the specified threshold, nor are future credit losses expected to exceed the specified threshold, and thus no expense or liability has been recorded. The Company currently does not anticipate recording losses resulting from its contingent obligation under this Credit Support Agreement. If losses related to the Credit Support Agreement are later determined to be likely to occur and are estimable, results of operations could be affected in the period in which such losses are recorded.

http://www.lendacademy.com/forum/index.php?topic=944.msg5686#msg5686" class="bbc_link" target="_blank">http://www.lendacademy.com/forum/index.php?topic=944.msg5686#msg5686

https://forum.lendacademy.com/index.php?topic=1345.msg9559#msg88888888Quote"> from: IrishMoss on July 19, 2013, 09:38:30 PM

I read this article too, but the person who wrote it seems confused on their terminology.  They mention 9% profit and 9% gross return in the same sentence.  Profit and gross return are not at all equal.

@SeattleSun

If I were you, I would hold your current position.  Until/if you find yourself in a situation where you need to generate additional emergency cash flow, I would not sell those bonds.  In fact, I would make it one of the last things to liquidate in such a case.

https://forum.lendacademy.com/index.php?topic=1234.msg8674#msg88888888Quote"> from: Rob L on June 30, 2013, 01:15:03 AM