Topics

I am considering a Roth IRA with Prosper through Sterling Trust.  I've been told there will be absolutley no fees if the Roth balance remains above $10,000.  Does anyone have any experience in establishing a Roth IRA and are there indeeed no fees?  Also, any other comments/thoughts on the Roth IRA option will be appreciated.  Thanks

Hi,

Does anybody know when the new variables LC announced in their most recent blog-post ( http://blog.lendingclub.com/2012/09/28/investor-updates-and-enhancements/" class="bbc_link" target="_blank">http://blog.lendingclub.com/2012/09/28/investor-updates-and-enhancements/) are going to show up in the CSV files for download?

Also, when you guys are picking loans, how do you count loans marked as late (or grace period) in the LoanStats.csv file? I'm building a model on the data and am currently counting them as bad, but that might discount the fact that many of them do recover. This may make the model forecast too pessimistic. Any thoughts?

Markus

I can certainly talk with them about it, but have you requested this as well? This is one of those instances where the more people who ask the more likely they are to do something.

It seems that about a month ago, we frequently had 1200+ loans on the platform, with at least 1/2 dozen approved loans matching the typical tight filters we savvy investors use at any given time.

In the last couple weeks, the total has dropped to 500ish, and I'm having to invest in non-approved so-so loans. Most good loans seem to get fully funded before they're approved, and before the borrower answers a single question.

What the heck?!?!

Maybe it's just a coincidence, but the shift seems to have occurred right around the time LC announced large-investor-only-loans.

Anyone else noticed?

Hey Peter,

When I click on the link "Show unread posts since last visit." on your forum I get the following result:

Quote

I'm having a hard time understanding Lending Club's due date and when a note goes into the Grace Period. For instance today (9/8) I have a loan due on 9/1 that LC shows as current and payment status Processing. If I check, previous payments for the loan, the always show completed by the 6th or 7th.  I know this is a bank holiday week, but still this seems like a while.

Also, I should note that I purchased a note off the trading platform that said Current and payment processing. As soon as the transaction cleared my account, the note showed up as in Grace Period - and I believe "Payment Failed".

Are there any hard and fast rules on determining when a payment has been made even when the status is "Processing" and when does a note really go into Grace Period status?

Thanks in advance for any info.

This is my second Prosper loan.  I meet all criteria for second loan.  My listing was 95% funded within 15 mins by institution and fully funded within an hour. (15K).  Why is Prosper not pushing the origination?  I'm assuming that since an institution funded 95%, it will originate.  Am I wrong?

Any insight is appreciated.

Does anyone know how we should report notes sold on the Folio Platform when trading from your Lending Club Roth IRA account? Especially if the notes are sold without making a profit.

Help me fund my loan on Prosper.com https://www.prosper.com/invest/listing.aspx?listingID=612208" class="bbc_link" target="_blank">https://www.prosper.com/invest/listing.aspx?listingID=612208

I noticed most banks offer unsecured loans and lines-of-credit up to $50k.  Why doesn't Lending Club or Prosper off a loan up to this amount? I wonder if they will in the future?  Anybody heard anything on this topic?

Hello, I find your idea of downloading the CSV file of available notes very smart and plan to filter my notes this way. I was hoping you could help explain to me one of their column titles not listed on http://blog.lendingclub.com/2012/03/14/expanded-credit-att/" class="bbc_link" target="_blank">http://blog.lendingclub.com/2012/03/14/expanded-credit-att/.

exp_default_rate  I assume this means expected default rate, but what does it *mean*. Where do the number come from and how can I use it in my filtering process?

Thanks!

Peter, the last update I have seen on your blog with regard to states available for borrowing/investing is a year old:

http://www.lendacademy.com/investing-lending/which-states-are-open-to-lending-club-and-prosper-investors/" class="bbc_link" target="_blank">http://www.lendacademy.com/investing-lending/which-states-are-open-to-lending-club-and-prosper-investors/

Do you have a page somewhere else on your site that keeps a current running list of all states that LC & Prosper now support for borrowers & investors?

I am working on a blog post about changes I would like to see at Lending Club and Prosper. We have a thread going here about Lending Club but I wanted to open it up for a discussion on Prosper.

Let me know what you think are the main points you would like Prosper to address.

Hi there. I had an interesting problem this morning and I wanted to see if anybody else was having this. When I went to LendingClub.com this morning, it redirected me to a different site (Rondavu.com) on all my chrome, IE, and firefox browsers. It did this last night too. I cleared chrome cookies and now its working fine, but I'm wondering if anybody else has had this problem.

-Simon

My account has a late note with the annotation "Borrower Deceased."

Here's the LC FAQ on the subject: "If a borrower dies with a loan in repayment, the executor or administrator of the estate must send a death certificate to Lending Club, after which Lending Club will file a claim on the borrower's estate to recover the outstanding loan balance. The amount to be recovered for each lender will be determined by a) the size of the estate and b) each lender's proportional share of the loan. Depending on the size of the estate, lenders may only receive a partial repayment. In the case where the estate does not include sufficient assets to cover the outstanding loan balance, the loan will be written off as defaulted with zero value."

Any idea how long this process will take? Obviously it's a function of state probate law. This particular state has a deadline of 8 months to file an accounting. And I wonder how many borrowers have died before payoff? Are those stats available?

Collection Log:
4/18/12 Received check payment
3/26/12 Borrower contacted Collections Agency
3/18/12 Charged off. Payment 120+ past due.

So when will LC post to my investor account the funds received after charge off? Any clue as to how this works? It's been over three weeks since the payment was made and my investor account hasn't received a penny of the 4/18 payment.

Prosper announced this week that they will be increasing rate for borrowers on AA, A and B rated loans. I spoke with Joe Toms, Chief Investment Officer, and he said that they are getting oversized demand from these kinds of borrowers. B-rate borrowers now have an expected return north of 10%. Will this change your investment strategy at all?

I found out why Lending Club takes four business days to process a deposit/transfer of new money into one's account before the money is available for investing. As some of you may know, the deposit is instant with Prosper so I inquired with my LC rep as to why it takes so much longer with them.  Below is the response I received:

Quote

Hello!

New to forum & just started with LC in mid December.  I'm doing pretty well but sometimes there are things that make so sense to me!
I would like to get your opinion on exactly what components of the following listing should have been red flags:

Requested: $16,200 (Debt Consolidation)
D3 @ 17.27% (60 months)
Monthly payment $405
Home Ownership: Mortgage ($1900/mo)
Gross Income $6000/mo
DTI: 4.7%
Credit Score: 714-749
Revolving Balance: $19,550
Stated reason for large revolving balance: Roof replacement.

This borrower filed for chapter 7 after he made only one payment!

I do not get it.  His DTI is low.  If I assume he nets 66% of his gross after taxes and allow for reasonable amounts for food, fuel, and paying off the revolving balance, this guy should have a reasonable amount of disposable income even before he refinances the credit cards.

It just seems to me that with the CC refinance, even if this guy lost his job it would take him a bit longer than 1 month to go bankrupt.

My question:  Did I miss a red flag in the listing, or is this "just one of those things"?  Ideas?

TIA,
Don

Prosper has not yet issued monthly statements for January and February 2012. This is worrisome and inconvenient, but does it foretell bigger problems at Prosper?