P2P Lending / NFT Lending Forum

I started converting over my portfolio to A loans since December of 2016.  At that time I had basically no A loans, now I have about 1100.  Since they are all fairly new loans (just reinvesting to buy new A loans), there haven't been that many bad loans yet, so far there are 6 in late 16+ through charged off.  I notice that there is a tendency for the bad loans to have lower initial fico scores (say 680-684) and the initial FICO range is very broad for A loans in general. 

I will note that I backtested screening on FICO in nsr and that screening on FICO has a slight negative outcome historically.

Yesterday I did a screen on existing loans to invest in with FICO greater than 750.  Most of those returned were A loans, although there was a wide range.  There were even some E and F loans in there.  I didn't see right off why the E and F loans with above a 750 FICO would be assigned that grade level.  I have attached screen shots of two of the these high FICO high interest rate loans.

I have general confusion of how lending club uses FICO in the underwriting process and why certain loans with lousy FICO could get an A grade and loans with really good FICO could get a E grade.  I would expect the assigned grade to be more correlated with FICO than it appears to be.  An insights appreciated.

I started liquidating Prosper a while ago by turning off re investment.  We will see how long it takes to run the entire accounts out (ROTH and regular).  I had less in there than in LC.  The returns were lagging LC and then when they took away the secondary market that kind of cinched it.

2017-09-17

Adjusted Net Annualized Return:   6.73%
Weighted Average Interest Rate:   12.20%
Weighted Average Age of Portfolio:   20.7 mos
Number of Notes:   3793

Grade: A (37.7%) B (2.4%) C (35.6%) D (17.6%) E (6.5%) F (.2%) G (.1%)
Term: Payments  36 (46.3%) 60 (53.7%)

vs All Accounts: 84.95
vs Similar Age Accounts: 96.43
vs Similar Age and WAIR Accounts: 95.61

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I continue converting to grade A loans since December of 2016.  So now I am buying just A loans and started with zero in December.  Out of 1100 loans so far 1 has charged off and there are 3 which are headed that way.  In the meantime my returns have been negative or about zero for the past few months as there are a lot of charge off on the other loans.  Looks fairly dismal but still waiting to see how it goes with the new A loans. 

lascott:  good luck on the surgery. 

twigster ROTH:
Your Notes purchased on the Lending Club platform
Adjusted Net Annualized Return:   7.94%
Weighted Average Interest Rate:   13.50%
Weighted Average Age of Portfolio:   19.0 mos
Number of Notes: 3,039

A(14.3%) B (4.0%) C(49.5%) D(23.6%) E(8.3%) F(0.3%) G(0.1%)
Payments  36(37.3%) 60(62.7%)

vs All Accounts: 88.32
vs Similar Age Accounts: 96.82
vs Similar Age and WAIR Accounts: 96.15
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twigster:
Your Notes purchased on the Lending Club platform
Adjusted Net Annualized Return:   8.56%
Weighted Average Interest Rate:   13.81%
Weighted Average Age of Portfolio:   26.4 mos
Number of Notes: 1,127

A(12.2%) B (9.3%) C(43.6%) D(34.9%) E(0.1%) F(0.0%) G(0.0%)
Payments  36(46%) 60(54%)

vs All Accounts: 91.47
vs Similar Age Accounts: 96.79
vs Similar Age and WAIR Accounts: 96.89

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Have been transitioning over to A notes starting beginning of December, so main account is up to 14.3% A notes (from 0%) in about 3 months by just reinvesting payments in new A notes.  Still no negative months, and returns look like they are starting to stabilize a bit.  No unexpected churning on the A notes and so far no lates.   

I have been investing in peerstreet since August of 2016 and started using there autoinvest tool in December of 2016.  Since that time I have invested in 25 deals (1 for 5k and the others for 1k each).  I was disappointed by the number of late payers that popped up in the batch of December loans.  Out of 23 loans, 5 were late pays by end of Feb.  Of the 5 lates one is not current and the other 4 are still behind in interest payments.  I would say out of about a dozen deals at other real estate debt sites I have had no late pays.  Since getting hit with these all near the same time I have decided to stop investing in peerstreet (for the time being) and see how the loans iron themselves out.  There are a lot of these sites that so far have 0% loss of principal (because of booming real estate market, lack of deals completed), but excessive late pays would be the canary in the coal mine for me. 

Also noticed that with the peerstreet website it is harder to see lates as compared with other sites.  Other sites tend to show a 'last paid' column or other indicator of whether the loan is current or not on the summary page, for peerstreet you need to see if there is a comment on the loan, or click on each loan to check the last payment date.

twigster ROTH:
Your Notes purchased on the Lending Club platform
Adjusted Net Annualized Return:   8.17%
Weighted Average Interest Rate:   14.11%
Weighted Average Age of Portfolio:   18.5 mos
Number of Notes: 2,799

A(4.3%) B (4.6%) C(55.3%) D(26.2%) E(9.3%) F(0.3%) G(0.1%)
Payments  36(29.9%) 60(70.1%)

vs All Accounts: 89.37
vs Similar Age Accounts: 96.92
vs Similar Age and WAIR Accounts: 95.67
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twigster:
Your Notes purchased on the Lending Club platform
Adjusted Net Annualized Return:   8.95%
Weighted Average Interest Rate:   14.13%
Weighted Average Age of Portfolio:   25.3 mos
Number of Notes: 1,066

A(3.1%) B (10.2%) C(48.0%) D(38.6%) E(0.1%) F(0.0%) G(0.0%)
Payments  36(39.2%) 60(60.8%)

vs All Accounts: 93.55
vs Similar Age Accounts: 97.22
vs Similar Age and WAIR Accounts: 97.44

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notes;  I have become somewhat disenchanted with the loan returns in the last 6 months as it seems that charge offs are too high in a non recession period.  Beginning in early December 2016 I decided to only purchase A notes (A2 through A5 as A1 interest rate is much lower, A2 = 6.99%, A5 = 7.99%) as an experiment.  Will see if paid in fulls go down (it should because no incentive to churn the loans) and stability of returns go up (at a much lower level).  Should be able to tell something in about 12 months.  Note on ROTH account: by re-investing all payments in A notes went from 0% to 4.3% in just under a month. 

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It looks like my 6/8/2016 updates are no longer in the current chart.  I see them in the chart posted on July 6th 2016:
Twigster IRA 9.30% (not 10.25%)
Twigster 10.11% (not 10.13%)

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It is at least worth referencing back to the current interest rates being offered, often they are up to 2% higher, I was quite surprised at this as I had not been checking before when buying off folio.  It appears LC wants to make up for lowering the interest rates previously while the default rates were rising.  Yes you can still find good deals on folio depending on what difference you would be willing to take between the folio note and new notes.

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Just starting to look at this.  Just amazing to me that Prosper would make Company Name a required field on the form to sign up for API credentials for individuals.....  Company Name is so obviously a field that does not apply to all individuals requesting access it caused me to write prosper about this.  They say they are going to clarify in the documentation, what they should do it make it a non-required field.  FYI; apparently you can just stick anything in there and it works....

I see from the announcement on your web site that there is a parnetship between Interest Radar and BlueVestment and further that:

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Per their web site:
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