So, now that we can get the latest status and payment information for each of the notes we hold through the new API, it's no longer necessary to download the .CSV all the time to get the info. Yeah! Among other things (like calculating ROI), I want to get better aging info for past due accounts beyond "31 -120 days". Always thought that was BS, as it tells you nothing about the trends in your notes (like are you going to have a huge write-off next month, or is this amount more evenly distributed 30/60/90/120?
So, in order to break this down, I considered using "today - last payment date = days old". Well, that's only true if the borrower pays the full amount each month until they just stopped paying. If they fall 90 behind, then make a single payment, they're still 60 days behind when the payment was only 20 days ago. So, obviously that is wrong.
Then, I thought that I would determine the aging by amount expected to-date vs. amount paid, using the method:
1) determine "loan performance days" as TODAY - issue date of the loan
2) determine "loan performance months" as "loan performance days" / 30 (truncated to the lower integer)
3) multiply amortized monthly payment by # of loan performance months to get to "payments expected to date"
4) determine payment amount past due by "payments expected to date" - (loan performance months X monthly payment amount)
5) months behind = total past due / monthly payment amount
This seems to work quite well, until I came across a loan (#1539580) where the borrower fell behind, made a huge payment, and then has skipped the last two payments. Of course, he is past due because payments are due each month (you can't just pay ahead). However, LC shows him as 31-120 when my method, of course, has him 7 months ahead.
Bottom line is, will LC write this guy off if he makes no payments for 3 more months, or will they let him go as long as he is ahead of the amortization schedule?
Anybody know?
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