Jump to content

Sign in to follow this  
cv91915

Lending Club IPO

Recommended Posts


They would have a lot more cash on hand if they didn't insist on stuffing mailboxes multiple times a month...you would think being Left Coast, there would be more consideration for those poor trees that give their lives to go in the trash without envelopes even being opened.

Share this post


Link to post
Share on other sites

Very clever. IEG is trying to unload while it can into something more liquid. Bubblelicious. LC's description that IEC would be effecting a sale to LC isn't quite right. Rather it's a sale of itself to 5% of LC's shareholders. Quite a different animal. Search for greater fools.

Share this post


Link to post
Share on other sites

one of my recent loans was through them (don't ask, don't tell). the origination fee is horrible. I even knew about it before accepting the loan and still was surprised by it. I then read so many stories about people being told they were approved but then told they were denied after. I was actually hoping that would happen to me, but.. and that's how I ended up with two loans (the other via Marcus).

 

I wonder what happens to the loan if LC goes under.

Share this post


Link to post
Share on other sites

one of my recent loans was through them (don't ask, don't tell). the origination fee is horrible. I even knew about it before accepting the loan and still was surprised by it. I then read so many stories about people being told they were approved but then told they were denied after. I was actually hoping that would happen to me, but.. and that's how I ended up with two loans (the other via Marcus).

 

I wonder what happens to the loan if LC goes under.

I remember looking at them some time back. The front end charge (like an origination fee) was pretty well spelled out. Seems to me it wasn't misleading at all. They even had different APRs. One for the rate on the existing balance, the other for the overall cost of the loan assuming it was paid per the schedule. Seems like pretty complete disclosure, nothing "hidden." OTOH, saying you were approved but then denied is pretty iffy. But hard to see any damages for the latter.

Edited by cashnocredit

Share this post


Link to post
Share on other sites

 

one of my recent loans was through them (don't ask, don't tell). the origination fee is horrible. I even knew about it before accepting the loan and still was surprised by it. I then read so many stories about people being told they were approved but then told they were denied after. I was actually hoping that would happen to me, but.. and that's how I ended up with two loans (the other via Marcus).

 

I wonder what happens to the loan if LC goes under.

I remember looking at them some time back. The front end charge (like an origination fee) was pretty well spelled out. Seems to me it wasn't misleading at all. They even had different APRs. One for the rate on the existing balance, the other for the overall cost of the loan assuming it was paid per the schedule. Seems like pretty complete disclosure, nothing "hidden." OTOH, saying you were approved but then denied is pretty iffy. But hard to see any damages for the latter.

 

 

 

I don't think they hid it at all, I think it was just sticker shock mostly. If you don't do the math ahead of time, it adds up the more 0s you add to the loan. Basically congrats, you're approved for a 15K loan! Now here's your 14K. but nothing really backhanded on their part.

 

I think part of the issue is their p2p model. they make you offers based on SP, approve you based on HP, but also need to find people willing to back the loan. and it just falls apart somewhere during that process. definitely questionable tactics. they seem to be one of the more eager p2p lenders which is to everyone's disadvantage.. I've also read reviews from a lot of lenders who complain there are a lot of defaults on the loans or in lieu of refinancing, LC will send out email offers to borrowers to basically replace their existing loan with more favorable terms.

 

and for approved borrowers, the biggest complaint I've seen is that if you pay the loan off early, they immediately report the account as closed.

 

other than all that, so far, so good. approved within a couple of hours, money in the bank the next day. although marcus was approved in seconds and also funded just as quickly.

Edited by bradk14

Share this post


Link to post
Share on other sites

 

 

one of my recent loans was through them (don't ask, don't tell). the origination fee is horrible. I even knew about it before accepting the loan and still was surprised by it. I then read so many stories about people being told they were approved but then told they were denied after. I was actually hoping that would happen to me, but.. and that's how I ended up with two loans (the other via Marcus).

 

I wonder what happens to the loan if LC goes under.

I remember looking at them some time back. The front end charge (like an origination fee) was pretty well spelled out. Seems to me it wasn't misleading at all. They even had different APRs. One for the rate on the existing balance, the other for the overall cost of the loan assuming it was paid per the schedule. Seems like pretty complete disclosure, nothing "hidden." OTOH, saying you were approved but then denied is pretty iffy. But hard to see any damages for the latter.

 

 

 

I don't think they hid it at all, I think it was just sticker shock mostly. If you don't do the math ahead of time, it adds up the more 0s you add to the loan. Basically congrats, you're approved for a 15K loan! Now here's your 14K. but nothing really backhanded on their part.

 

I think part of the issue is their p2p model. they make you offers based on SP, approve you based on HP, but also need to find people willing to back the loan. and it just falls apart somewhere during that process. definitely questionable tactics. they seem to be one of the more eager p2p lenders which is to everyone's disadvantage.. I've also read reviews from a lot of lenders who complain there are a lot of defaults on the loans or in lieu of refinancing, LC will send out email offers to borrowers to basically replace their existing loan with more favorable terms.

 

and for approved borrowers, the biggest complaint I've seen is that if you pay the loan off early, they immediately report the account as closed.

 

other than all that, so far, so good. approved within a couple of hours, money in the bank the next day. although marcus was approved in seconds and also funded just as quickly.

 

 

Interesting. One problem with a high front end discount is that it's a strong disincentive for people that want to, or may, pay off the loan early. You pay off the loan in 6 months the effective APR would be over 30%!. So it's going to attract people that see virtually no chance of early payoff and that may skew the risk profile of people seeking these loans. So they could well be underperforming relative to what a FICO score would project.

Share this post


Link to post
Share on other sites

I put in about $1000 and loss over 50% too. The number of defaults on the platform is unbelievable.  The best rate of return I had since It started was about 1.5%. Many years were simply just loss after loss, and me attempting to readjust and balance the portfolio.

 

Out of 61 loans I made, 11 are charged off.  today 20 are current, 5 are 30-60PD (will enter default soon), and 25 are paid in full. But as i go through the current loans, about 20% of them have been 90 days late. One loan is 16-30 days late every month (just paid up at the moment). 

 

Maybe the figures are reasonable for some, but I should be bringing in a much higher rate of return. Even Alliant savings pays a better return than LC. 

 

 

 

 

Share this post


Link to post
Share on other sites
9 hours ago, EvilMan said:

I put in about $1000 and loss over 50% too. The number of defaults on the platform is unbelievable.  The best rate of return I had since It started was about 1.5%. Many years were simply just loss after loss, and me attempting to readjust and balance the portfolio.

 

Out of 61 loans I made, 11 are charged off.  today 20 are current, 5 are 30-60PD (will enter default soon), and 25 are paid in full. But as i go through the current loans, about 20% of them have been 90 days late. One loan is 16-30 days late every month (just paid up at the moment). 

 

Maybe the figures are reasonable for some, but I should be bringing in a much higher rate of return. Even Alliant savings pays a better return than LC. 

 

 

 

 

The performance I'm talking about in this thread is the LC stock that I bought when the company went public.

 

The returns on the LC notes that I've purchased have ranged from 5.3% to 7.5%, after factoring in the defaults/charge-offs, depending on the year.  I hand-picked every note, which was time consuming relative the actual dollars earned, however.

 

Time investment aside, I have been quite satisfied with the performance of my portfolio of notes (the money would have otherwise been sitting in savings earning < 1% most of this time) but the stock has been a complete disaster.

Share this post


Link to post
Share on other sites

I don't think LC has any risk based on the portfolio. The way LC is setup, isn't all of the portfolio risk carried by other investors? either individuals or WebBank?

Share this post


Link to post
Share on other sites
3 hours ago, RocketGoBoom said:

I don't think LC has any risk based on the portfolio. The way LC is setup, isn't all of the portfolio risk carried by other investors? either individuals or WebBank?

The risk of holding a non-performing note is borne by the investors who own slivers of the note.

 

LC is having problems, in part, in getting to a large enough scale to make it a viable business on fee income (origination, servicing, etc.).

Share this post


Link to post
Share on other sites

check these out. They are published each day on Edgar.

 

https://www.sec.gov/Archives/edgar/data/1409970/000140997018001130/postsup_20180913-135225-0.htm

 

There is an absolute wealth of data here and it's available to anyone that wishes to download it.

 

This can be collected from the start of LC doing this and analyzed in detail. Dollars to donuts multiple financial entities are doing this and correlating this info against what they have internally.

 

Love to be a fly on the wall where quants do this.

 

Pretty clear that the risk implied by FICO alone is, shall we say inadequate, for decisioning and setting APR. It will ether correct or go into the dustbin of history.

Share this post


Link to post
Share on other sites
20 hours ago, cv91915 said:

The risk of holding a non-performing note is borne by the investors who own slivers of the note.

 

LC is having problems, in part, in getting to a large enough scale to make it a viable business on fee income (origination, servicing, etc.).

The investigation prompted by the whiners who cannot ever be bothered to read the terms of a Borrowing Agreement don't help matters either.  Seems to be a great short opportunity, perhaps with a few options in the event of a dead cat bounce.

Share this post


Link to post
Share on other sites
On 12/11/2014 at 6:21 PM, cv91915 said:

Bad news: I was only able to buy 250 shares @ $15.00/share.

 

Good news: The price went up 56% in the first day of trading, closing at $23.43.

You could recoup a LITTLE of that loss writing some puts...

 

Or...alternately, just short the hell out of it.  Sold another 1000 shares short this morning.  So little concern that I am not even worrying about putting any options in place to cover since I figure it will continue its downward trend...

Share this post


Link to post
Share on other sites

Anyone else making money on the way down? 

 

I'm not sure which has been a more interesting watch...today's circling of the LC bowl or the meteoric rise of TLRY a few weeks back (talk about some shorts that got squeezed and daytraders that either got healthy or are still on life support). 

 

Graph today looks like an aggy rollercoaster by mid-November LOL!

Share this post


Link to post
Share on other sites
On 10/11/2018 at 12:01 PM, centex said:

Anyone else making money on the way down? 

 

I'm not sure which has been a more interesting watch...today's circling of the LC bowl or the meteoric rise of TLRY a few weeks back (talk about some shorts that got squeezed and daytraders that either got healthy or are still on life support). 

 

Graph today looks like an aggy rollercoaster by mid-November LOL!

gives me a chance to buy more of the (few) individual stocks I own. :)

Share this post


Link to post
Share on other sites

Covered some of the short sales today...filled some of the $3.78 at $3.24.  Not a huge profit (only 10K shares on the cover), but I also expect another wounded cat bounce back to $3.60'ish across the next week.  I would say dead cat, but it still has some lives left LOL! 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines