What amount does investors obtain after chagre-off?

[Jogi]

I'm analyzing the payment history and want to know what amount an investor obtains in case of a chage-off.

Eg. look at loan 57167, which defaulted in April 2015. The payment history gives me the following info:

PBAL_BEG_PERIOD:      23365.3
RECEIVED_AMT:            0
PCO_RECOVERY:            3354.94
PCO_COLLECTION_FEE:  603.88

 So what does this tell me?
The investor get 0 (RECEIVED_AMT=0) even though some money has been recovered (PCO_RECOVERY=3354.94)?
And who gets the collection fee? (PCO_COLLECTION_FEE=603.88)

Many thanks!

[TravelingPennies]

Since nobody replied, I try to answer the question myself, hoping for validation...

According to LC's NAR calculation:
https://www.lendingclub.com/public/lendersPerformanceHelpPop.action" class="bbc_link" target="_blank">https://www.lendingclub.com/public/lendersPerformanceHelpPop.action

The return includes interest, late fee and net recoveries minus service fees and charge offs.
So in the case above, the investor would get ( PCO_RECOVERY +PCO_COLLECTION_FEE) at the last payment date.
The amount lost is therefore PBAL_BEG_PERIOD-(PCO_RECOVERY +PCO_COLLECTION_FEE)

In hope for validation....

[SLCPaladin]

Sorry that no one has chimed in on this thread. I'm in the process of winding down my portfolio (although I'm not liquidating on Folio like others). As a result, I don't get into the weeds as much any more. But I think that the collection fee does not go to the investors. I believe the collection fee is viewed as a service provided by LC, so they keep that amount. Someone more knowledgeable may be able to correct me if I have misstated.

[PennySaved]

What is the difference between recovery fee and collection fee?  Both show up as deductions against my account in monthly statements.

[anabio]

https://forum.lendacademy.com/index.php?topic=4609.msg42057#msg88888888Quote"> from: PennySaved on October 14, 2017, 08:25:19 AM

[TravelingPennies]

@anabio

Thanks for the reply!
Regarding your citate: "

The recovery fee concerns accounts that have defaulted/charged off. Any recovered amount goes to the investor MINUS this recovery fee (which goes to comes LC's coffers."

So can you state, what exactly the amout is, the investor receives for this specific loan with ID 57167?
Is it  PCO_RECOVERY - PCO_COLLECTION_FEE =3354.94 - 603.88?
Or is it only PCO_RECOVERY=3354.94 what the investor receives?

[mrwhizzard]

https://forum.lendacademy.com/index.php?topic=4609.msg42173#msg88888888Quote"> from: Jogi on October 25, 2017, 09:01:03 AM

[lascott]

Saw this article that came out yesterday to be relevant.

Title: Don't Forget about Loan Recoveries – Part 1
https://www.orchardplatform.com/blog/dont-forget-loan-recoveries-part-1/" class="bbc_link" target="_blank">https://www.orchardplatform.com/blog/dont-forget-loan-recoveries-part-1/