P2P Lending / NFT Lending Forum

"LendingClub could code every account as either institutional (LP, LLC, etc.) or retail individuals."

I am not sure this distinction is as clear cut as you think/propose.  Myself and two of my "business partners" are operating our P2P account as an LLC.  We have an account balance of less than $100k and have never made a loan above $100 and consider ourselves as just three reatail individuals joined at the hips.  We do this to allow shared management duties by like thiniking individuals allowing for time off like vacations, etc for the others partners.  Of course we could always set up three individual accounts.  P2P is not the only small venture we manage this way.

...and its 9:07am already.

Can someone confirm?  TIA

Haven't had a WSJ subscription for years but isn't there usually the ability of readers to add comments to the electronic copy of the articles.

If the above is true suggest you add a comment leading them to "P2P Picks" and or "Lend Academy"

Anyone want to read the "tea leaves" about this snipet from Prosper's August Newsletter.  I seeing lower borrower rates, is that correct?  TIA


New credit scoring – In mid-August will be updating the credit bureau model that we use in conjunction with the Prosper Score to calculate our Prosper Rating. We are replacing our current scoring model, Scorex Plus™, with the more widely recognized FICO® Score. Our Credit Risk team has done extensive statistical analysis to evaluate several bureau scorecards and found that the FICO® Score is the most effective. The FICO® Score is the most frequently used credit bureau scorecard among lenders in the consumer finance industry. This change will more directly align us with industry standards, and will also enable us to better meet borrower expectations with our rates and offers.


Full Newsletter on Prosper Blog here    http://blog.prosper.com/" class="bbc_link" target="_blank">http://blog.prosper.com/

The Federal Reserve is running a "financial repression" operation  http://en.wikipedia.org/wiki/Financial_repression" class="bbc_link" target="_blank">http://en.wikipedia.org/wiki/Financial_repression   and the Zero Interest Rate Policy (ZIRP) is a key feature. 

Savers are Enemies of the State and are being punished for hording cash with negative real interest rates.

Although financial repressions operations have been run before (see table) it is hard to draw any conclusions as to how long it will last due to the small sample size and many were in response to the same event i.e. the debt the allies ran up during WW2. 

The table immediately below shows the 13 previous periods of financial repression.


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I have assumed that Prosper requires "automatic drafts" for their borrowers, is that correct?  TIA

Is possible on the web site to unwind a Prosper loan before it fully funds and is originated?

Example:  My usual loan is $100 and today I "double pumped" one due to a distraction and ended up with $200 on that particular loan.

Yea really not a big mistake but the other day I had typed in $1000 instead of $100 but caught it before I 'confirmed'.  That type of mistake I would like to "unwind" for sure.

I really like to see a description of why they want the money and don't like it when its missing on Prosper.

And then again so many shoot themselves in the foot with a description I can see why so many leave it blank.   LOL

I took a look at flipping but I didn't want to get my hands dirty.

One of my friends passed on P2P and went back into flipping houses in Wyoming (oil boom town) after he moved there from San Diego last year.  He wears a hard hat and acts as the 'general contractor' as he buys distressed properties.  He likes it.

As I told him,  "you can take the boy out of Kalifornia, but you can't take Kalifornia out of the boy"

THE NEW NORMAL?

Rob,

I interputed your post early today saying things were "normal" to mean they were the same as you posted on July 1st, see below.

You could use P2P Picks in a manual mode and do OK.


Q.  How much action did you lay in that 30 day period.  I would estimate over $100,000?


.......................      The Old Normal      ............................

Bob L posted this on July 1st

"Today I finished purchasing notes totaling 100% of my initial LC funding exclusively using P2P-Picks.

Since approx. 1 June 2013 LC has posted about 16,349 new notes and I bought 1,672; remarkably close to 10%.

As you know P2P-Picks has two models; Loss Minimizer (LMIN) and Profit Maximizer (PMAX). I bought 796 LMIN notes and 860 PMAX notes. I know the totals don't exactly match because I bought a few others on a whim, and sold some duplicates on Foliofn. Dollar allocation is 55% PMAX and 45% LMIN (which I think is a conservative mix).

PMAX grades notes as Top 1%, 5% and 10%. LMIN grades notes as top 5%, top 10% and top 25%. I initially started funding all notes the same $ amount and saw my portfolio was quickly being dominated by 25% LMIN's. The next evolution in my strategy was to eliminate all the 25% LMIN's completely and that balanced out my purchases for a while. Then I got the bright? idea that I should invest more per note in the PMAX 1% than 5% and more in the PMAX 5% than 10%, so I did. Same for the 5% LMIN's and 10% LMIN's. As I said I had long before stopped investing in any 25% LMIN's. I would love to hear Bryce's commentary on this $ allocation of investable funds. My guess is that I overdid it on the 1%'ers and possibly would have been better off with the same $ allocation to 1% and 5% and maybe a bit less for 10% PMAX. Perhaps the same allocation for 5% and 10% LMIN's would have been better. Time will tell.

Now let me speak to auto-invest, or lack there of with P2P-Max. It's basic human nature to think that the smart money is grabbing all the "best" loans before I get my shot at them, and I'm getting the leftovers. If there's anyone out there (other than LC itself) who has better data than I on this matter over the past month I would be surprised. For all the discussions of  the dominance of high speed autobots, most of the time they never show up. Don't ask me why. Down to the details LC almost always releases new notes between 2 and 3 minutes after each of the 4 magic hours during the day. Often a bit earlier than 2 minutes after the hour and almost never post 3 minutes after. P2p-Picks is extremely punctual posting its recommendations; 4 minutes past the magic hour (I give it an extra second to 4:01). Refresh your screen at 4:01 after and the recommended picks will be there. PMAX is all that matters and you should already be on that page. The LMIN recommendations will be there for a relatively long time and you can check them after you've done your PMAX purchases. You will have previously opened your LC account in a separate tab at the top of the hour, long before the "buying frenzy", so you don't have to spend the time to log in while trying to buy notes. Click on the P2P-Picks dollar allocations for each recommended note, then start at the top and hit go. Wait for that loan's go button to disappear. Continue to hit go till you've hit the last one. Each Go will popup an new LC note added page (if the loan's already been fully funded you'll get a zero notes added. On the popup of the last go hit continue, then hit view notes and finally buy. You do not have time to be more choosy here. Once you get the hang of it the whole process takes less than two minutes, then switch to LMIN picks and repeat for another couple of minutes. For LMIN you will have the time to look at each note's interest rate rather than immediately clicking buy, and have the opportunity to discard the low ones if you want. If you miss one of the 4 magic times a day don't worry, I'll quote another poster who said "notes are like Doritos; they'll make more". At least for now, if you follow the follow the above you will not be substantially disadvantaged by autobots. Maybe I was lucky, but this took about 20 minutes of my days over the past month and I was able to organize my schedule to accommodate it. For other's I'm sure this sounds a bit crazy. Given the choice between having autoinvesting available to me or P2P-picks selections available I went with P2p-picks. Just a personal choice. If I were to add additional funds in the near term I would still be relatively unconcerned about the competition from autobuying, but it could turn on a dime and make things much more difficult.

For now without auto invest who ever's the quickest gets first shot at the top 1%'ers. With auto invest it be may more problematic, but only for allocation by P2P-Picks to P2P Picks customers, not LC. P2P Picks are by no means LC's top 1% (if LC has a top 1%).

https://forum.lendacademy.com/index.php?topic=1321.msg9456#msg88888888Quote"> from: thezfunk on July 18, 2013, 12:19:49 PM

https://forum.lendacademy.com/index.php?topic=987.msg6116#msg6116">Quote"> from: Fred on April 18, 2013, 11:32:29 AM

https://forum.lendacademy.com/index.php?topic=919.msg5389#msg5389">Quote"> from: rawraw on March 31, 2013, 09:04:09 AM

It appears to me there are a lot of smart fixed income guys here.  I would appreciate some comments/opinions on my existing portfolio of I-Savings Bonds. 

I Savings Bonds are a US Treasury product offered to individuals to hedge for inflation IMO.  Interest on an I Bond is a combination of two rates: 1) A fixed rate of return which based on the date of purchase and remains the same throughout the 30 year life of the I Savings Bond and,  2)  A variable inflation rate which is calculate twice a year, based on changes in the non-seasonally adjusted Consumer Price Index for all Urban Consumers (CPI-U) for all items, including food and energy.

Here is a more detailed description for those interested:   http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm" class="bbc_link" target="_blank">http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm

These 30 year bonds were bought in 2001, 2003 and 2005 and carry a fixed rate component or 3.00%, 1.10% and 1.00% the in the last decade the six month computed variable interest rate component has ranged from -2.78% (2009) and +2.85%.  But my received interest rate can never fall below zero.

Here is the rate history for those interested:  http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm" class="bbc_link" target="_blank">http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm

Currently based on the May 1st 2013 update these government bonds Yield:  5.58% (2001),  3.84% (2003) and  3.74% (2005).   Since it would be laborious to calculate the current value of these $10,000 bonds here it is: $18,928 (2001), $14,532 (2003) and $13,204 (2005).

There is no secondary market for these bonds the only choice is to continue to hold or sell back to Uncle Sam.

When me and my wife bought them there was a annual limit of $30,000 per SSN and we maxed out each of the subject years.  Now there is an annual limit of (edit) $10,000 per SSN.  That signals to me that Uncle Sam is sorry he sold me these I-Bonds.  I do get some pleasure from holding the Treasury's feet to the fire but economically wonder if these are a HOLD or SELL.  I have taxable alternatives for fixed income investing of between 7% and 10% now.   I can make construction loans to a local business at 7% or invest in P2P for an estimated 10%.  Both these opportunities are ~3 years in duration.  Neither are "risk free" like Treasury Debt (lol).

I know it will be hard for the "professionals" here to comment not knowing my total financial situation.  Here are a few tidbits:  I am 66 and retired with a pension and SS (thanks to all those still contributing to the SS Trust fund).  My 60 year old wife continues to work.  I can vary my annual income between $70k minimum and say $140k using non-mandatory IRA withdrawals.  If that still isn't enough data I would be happy to hear just general comments on this I-Bond portfolio. 

Again the options are HOLD or SELL as I would never buy I-Bonds now as the fixed rate is zero for the life of the 30 year bond.

TIA

https://forum.lendacademy.com/index.php?topic=948.msg5706#msg88888888Quote"> from: Watermen on April 06, 2013, 09:16:49 PM