P2P Lending / NFT Lending Forum

Over the past couple of months I have noticed that when notes of mine become late Lending Club has not made any contact with the borrower between the due date and settlement date when the ACH is being pulled, or after when the note goes into its Grace Period. Does anyone know why Lending Club is not making the effort to contact some of its borrowers?

Yeah my portfolio is really interesting at the moment, and continuously working to decide what to do in the future once I invest more money. I'm using the account to test my original strategy and don't intend to sell it off anytime soon. I attached below an PDF with my results this past year which gives anyone interested a better understanding of what I have been doing. Also I intend to add another 3k either all at once or incrementally in the near future.https://forum.lendacademy.com/index.php?topic=3365.msg39238#msg39238">Quote"> from: lascott on January 05, 2017, 12:08:47 PM

It is about time I finally posted my returns after starting nine months ago, so here we go. All but one note is from folio after accidently not turning off a LendingRobot filter.

Combined ANAR:   10.11%
Weighted Average Interest Rate:   23.2%
Weighted Average Age of Portfolio:   25.22 mos  <<<<calculated from my excel returns file due to being combined.
Number of Notes:   101 (93 active)

Grade: A(0%) B (0%) C(0%) D(7.2%) E(36.2%) F(31.6%) G(24.9%)
Term: 36(1.9%) 60(98.1%)


vs All Accounts: 96.48
vs Similar Age Accounts: 99.28
vs Similar Age and WAIR Accounts: 100.00

Proof photos are attached below.   

If you ever start buying notes automatically again I'de recommend creating filters for each loan grade to improve quality instead of lumping everything into a one or two filters. If you go that route as I've realized even though I don't use auto buying is that unless there is a feature to select the percent for each grade you want is to manually shut off the filters for a given grade once your desired threshold has been met.

https://forum.lendacademy.com/index.php?topic=3609.msg39013#msg88888888Quote"> from: dbailey75 on December 13, 2016, 12:31:12 PM

I've been investing since March and my account is on the small side at $1600. I plan to increase it once I get a stable income since I'm a recent college grad.

Peercube is a good option if you're willing to pay for a monthly membership, as well as NSR. Both let you do the similar things in regards to backtesting, buying, and selling.

If you read the whole article it says that subprime auto loans are at a six year high for defaults, so it's not just a P2P thing, but an industry wide problem. In any case won't stop me or many others to continue to lend.

https://forum.lendacademy.com/index.php?topic=3551.msg38700#msg88888888Quote"> from: ThinleyWangchuk on November 20, 2016, 01:29:07 PM

I'm one of those who early on realized that buying at a premium is not that big of a deal when I'm mainly buying E-G notes. I've limited it to 2.5%.
https://forum.lendacademy.com/index.php?topic=3551.msg38667#msg88888888Quote"> from: fliphusker on November 17, 2016, 11:11:21 PM

I'de more preferrably sell my notes once they go IGP, but I've gone back and forth in my head that it doesn't matter if a note goes IGP or note, because if I plan to sell it now for a 30% discount I'm getting my 70% back. Conversely if I let the 30% of notes that are to go bad, go into late status or default I'm still at 70%. It's all a matter of perspective. It's obviously easier for me to keep track of my notes since I only have like 90 notes, but I'de still prefer to sell my bad notes just to make me feel better inside, and move on from those notes.

https://forum.lendacademy.com/index.php?topic=4174.msg38566#msg88888888Quote"> from: fliphusker on November 12, 2016, 10:06:40 AM

I've had the icon that blocks the check box, when the note is still in payment processing and in grace period, but not that.

I'de recommend when investing the rest of your money to stay away from A grade it returns only about 5% and B grade returns almost 7% and that is without any filtering. Since you're new I'de recommend going to nsrplatform.com create an account and play with their backtesting filters to optimize note selection for what you are comfortable with. Since you're already heavily invested in A grade loans it would be better to invest in a breakdown something like 10% A, 30% B, 50% C, 10% D, or    10% A, 40% B, 40% C, 10% D.

Piggy backing off of what CircleT009 has said I want to say that grade and loan selection is a big determining factor of portfolio performance. I suspect that people who are saying they want to stop investing are weighted more in lower grade notes E-G, maybe even being too weighted in D, which is causing lower returns due to losses. If this is the problem then being able to optimize grade distributions, which I'm trying to do by using an efficient frontier model (If anyone has seen my post about that earlier in the week and can lend a hand that would be great.) to reduce portfolio variance.

You all must think I'm crazy to say the following but my returns have been relatively stable the past seven months when I started investing and any drop in performance is easily explained. As a warning I've only invested in Folio so my returns will be higher than others due to selecting older notes vs investing in new notes. The attached pictures show my weights for each grade as well as performance since I've started. My weights are broken down as (5.5% D), (28.1%, E), (37%, F), (29.5%, G) and steadily heading toward the higher grade notes as I get away from F-G. Over these seven months I've averaged between 18-20% returns with the only drops being from an influx of $500 for a 50% increase of funds I invested in July, and selling 1 out of my 89 notes at a 90% loss in October.

Now my question to you all is are you going to do something about to improve your returns as I assume most will as rational investors, or for the select few will you just say that everything is falling apart and there is nothing you can do to improve your situation and withdraw from Lending Club? https://forum.lendacademy.com/index.php?topic=3551.msg38385#msg38385">Quote"> from: CircleT009 on November 03, 2016, 11:59:47 AM

I'm having a similar situation myself where I've had 4 loans go bad out of 89 active notes. One I sold in the beginning of the month which went bad in September for 90% off when it went Late 16-30 days. Another is also Late 16-30 days but went on a paymen plan, which is frustrating me since it doesn't pay until 11/30, 55 days past due. The other two are IGP but were notes I just bought off Folio, one which is hasn't paid but shows no contact log, and is in payment processing for the past eight days, so I can't sell it, the other is also on a payment plan, for three months. Luckily for me none of my notes in my seven months of investing have gone bad, luckily by selling them once they go IGP.

https://forum.lendacademy.com/index.php?topic=3551.msg38354#msg88888888Quote"> from: anabio on November 01, 2016, 04:25:18 PM

I wonder if trying to determine an n level of FICO drop of each month for each grade would be a better determining factor, so say a loan is 6 months old w/ an a score at origination of 670, at month 7-n what would the score have be to indicate a possible default?
https://forum.lendacademy.com/index.php?topic=4149.msg38318#msg88888888Quote"> from: Rob L on October 31, 2016, 10:01:57 AM

Has anyone made an efficient frontier model for their portfolio showing portfolios along the curve with the minimum variance for a given expected return? I'm having a hard time making a variance/covariance matrix because the yearly data I'm using for each grade  from 2012-2015 produces values that are essentially zero with little to no variance/covariance. My matrix for grades A-G looks like this with the filters I use for each grade on Folio: Similar results occur with primary market filters also.

   A                            B                    C                    D                     E                     F                    G
A   0.00000905   0.00002128   0.00002712   0.00002579   0.00003233   0.00002002   0.00002472
B   0.00002128   0.00006770   0.00007329   0.00006886   0.00007666   0.00003445   0.00005669
C   0.00002712   0.00007329   0.00008796   0.00008341   0.00009832   0.00004778   0.00006351
D   0.00002579   0.00006886   0.00008341   0.00007915   0.00009362   0.00004534   0.00005921
E   0.00003233   0.00007666   0.00009832   0.00009362   0.00011631     0.00006735   0.00008149
F   0.00002002   0.00003445   0.00004778   0.00004534   0.00006735   0.00007228   0.00008984
G   0.00002472   0.00005669   0.00006351   0.00005921   0.00008149   0.00008984   0.00012917

This martrix results in only two grades being invested instead of a mix of all seven grades. For example:

                             A             B             C               D            E
weights      20.68%   0.00%   0.00%   79.32%   0.00%
return terms   1.51%   0.00%   0.00%   13.49%   0.00%
target   15.0%
st dev   0.47%


I haven't tried using monthly data yet but I'de expect a similar result. I also tested a portfolio of five stocks and the model worked so something is wrong with the data being used.