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I am seeing a spike of prepayments in the past month.  The vast majority are coming in regards to my FOLIO notes.  As I do not buy notes at a premium it is not a huge deal. 
But what I do find strange is that a lot of these notes have a sub 640 FICO with under 20 payments remaining.  One that just prepaid had around $6k left with a 560 FICO.  Who refinances that?  One, in particular, had 600 FICO with IGP the past three months. 
This is a bit concerning if there really is a credit market out there that is willing to take on borrowers with such shaky credit. 
Kudos to the guy for getting out from underneath his 19% rate.  (He was a cop who rents making 48k/year.)

https://forum.lendacademy.com/index.php?topic=4319.msg39950#msg88888888Quote"> from: JohnnyP on February 26, 2017, 02:57:26 AM

https://forum.lendacademy.com/index.php?topic=4318.msg39948#msg88888888Quote"> from: storm on February 26, 2017, 01:19:03 AM

I was under the impression that you were strictly buying on FOLIO.  Guess I missed you saying different. 

1. Recommend LC to your friends? A/B notes on primary, would not recommend above B notes and recommend FOLIO sorta.
2. Website meeting your needs?  Mobile version is actually terrible.  Drop down menus might be better.
3. Returns meeting your expectations?  Sorta, most of my defaults that I have are my own fault.  Could be higher, but not a year in either.
4. Defaults meeting your expectations? Again, my fault with what I bought.
5. What can we do to make it better?  Tell FOLIO to make their site better or simply have LC build their own.
6. Can we contact you about your responses?  Ya.  Talked with Jenna this week to continue getting the missing FICO stuff resolved.  She has been super great actually. 

Like JZ I no longer invest on the primary but when I did my backtesting led to a filter similar to yours.  With a few exceptions.

1) Exclude sand states (Arizona, California, Florida, Nevada)--This is still included in my FOLIO filter.
2) Max DTI of 20%-- Was the same. 
3) Min length of employment of 5 yrs--If I remember, backtesting showed lil correlation.
4) Homeowner--I only took notes that OWN or Mortgage.  Oddly enough people who owned their homes did have a bit more chance to default.  Was not big enough for me to be overly concerned.
5) Exclude the following loan purposes: medical, business, invest in learning/training, wedding, vacation, moving-- I only invested in CC and refi.
6) Monthly income >$4000--Mine was $60k/year.
7) Inquiries < 2-- Mine was set to 0.  Anything above my backtesting showed a spike. 
FICO was a must over 680. 
I did only invest in notes that were over 12%
Another filter I used was public records.  That was a big huge red flag for me.  If they did it before, did they learn anything from it?  Well no, they have got themselves into another credit crunch.

Here are quick notes from my 9 chargeoffs.  (Yes ridiculous sample size I know.)
1st -- System engineer $9k, 6 years, rent, 1 public record.  Bought on primary market bad filter from LR
2nd --Unloader, $3300, 10 years, Own, 1 INQ.  FOLIO
3rd -- Program coordinator, Own, $6k, 8 years employment.  FOLIO
4th -- NA job length, NA title, Own, $3300, 1 pub record.  Primary, another bad LR filter
5th -- NA job length, NA title, $3500, Mort, 2 INQ.  FOLIO
6th and 7th -- Cop, 10 years, $7k.  FOLIO met ever filter from primary as used to use primary filter on FOLIO.  Which is silly.
8th -- Teacher, 10 years, Mort, $6800.  FOLIO and met all my primary filters.
9th -- Head custodian, 10 years, $2100, 1 pub record, 1 INQ.  Another LR bad filter. 

So after almost a year I never had loan (out of 80.  I know small sample) that went belly up with my own filter. 

Just talked to LC, (still trying to get the screwed up FICO data that is missing from some notes resolved), and they said that the interest will come to us investors, not to LC.
Score one for the little guys!
Will be running out scooping up those IGP notes on FOLIO.<----------Sarcasm!

https://forum.lendacademy.com/index.php?topic=4306.msg39801#msg88888888Quote"> from: rawraw on February 19, 2017, 11:25:25 AM

Assuming you are talking about automatic buying?
If so, no because of the issues associated with notes that I am sure all sites and their automated tools do not see in notes. 
Downturns in FICO scores even if they are still up.
Notes that have a recent IGP but listed as never late.
A recent change in borrows payment date.  If it is outside of around 5 months does not bother me, but do not buy notes inside of that time frame. 

Might want to check out PeerCube and Anil for more info there. 
I use NSR but I hand pick notes as I am a small fish, about half of what you do.

I believe there are some old threads running around here in regards to this.  Personally just dumping at the accountant and let him deal with it.  I might be too small an investor to even make a difference. 
https://forum.lendacademy.com/index.php?topic=4281.msg39524#msg88888888Quote"> from: SLCPaladin on January 28, 2017, 10:55:23 AM

First, question, did you do backtesting at NSR before you started investing with LC?
Second, do you have a large percentage of your portfolio in debt consolidation?  This may skew your numbers. 

While I was investing in the primary market, I bought only debt consolidation and CC refinancing.  It was because that is what I got out of my backtesting and articles I had read. 
Having other good filters is important IMO.  Unfortunately others are currently seeing a spike in defaults as well.  Is it a cycle or a trend?

Guess I am not the norm, my account is in the best shape it has been since I started.

Osito, think ya have a typo there.  FICO scores updating would not have anything to do with payments.

On a side note, does LC still use TU for their FICO provider?

This comes from the FOLIO file.  (Sorry just copied the whole line from open office and it is a mess).  So technically the FICO is there and shows it down and down to 499.  So NSR is only listing the FICO that is given for the FICO End Range.  I am going to assume the other sites that allow FOLIO buying and selling has the same issue. 
Would missing data like this trigger NSR, PC or LR to say these notes are 499 FICO?  I know I am not putting that into the proper terminology. 
The other question would be are there other missing data items that could cause such issues?
I did send an email to LC.

LoanId   NoteId   OrderId   OutstandingPrincipal   AccruedInterest   Status   AskPrice   Markup/Discount   YTM   DaysSinceLastPayment   CreditScoreTrend   FICO End Range   Date/Time Listed   NeverLate   Loan Class   Loan Maturity   Original Note Amount   Interest Rate   Remaining Payments   Principal  Interest   Application Type                                                                  
3808612   21035316   6023853   8.22   0.06   Current   8.72   5.32   4.47   13   DOWN   499-   01/11/2017   false   C3   60   25   15.8   15   8.28   INDIVIDUAL                                       

                                                                                                                                                                                                                                                                                                                                                

I have not sat down and figured out my returns with IRR as Open Office has a different way of figuring it out.  Do others use Open Office, and is there a tutorial that you have to use it for IRR?  I just have not taken the time to learn it.  I do not have a very large account and know that defaults have a large impact on my returns/projected returns.  A straight roller then 3 (2 of same note) quick defaults on FOLIO notes hurt.  As late as I believe October my ANAR on my FOLIO, was negative. 
I said from the beginning I was not going to concern myself too much about my returns until the 1-year mark (3 months to go).  I would be curious to see a monthly breakdown at that time on my progress.
Does everyone figure this with IRR or just look at the monthly ANAR?  Just noticed that ANAR is not listed on statements. 
Rob, how much do you concern yourself with how your returns were over those months when you whittled down your account? 
https://forum.lendacademy.com/index.php?topic=4245.msg39299#msg88888888Quote"> from: Fred93 on January 08, 2017, 06:35:41 PM

The liquidity in the FOLIO market dried up?  You took 20% returns and turned them into -1% in a few months?   
When you bail out taking losses, what do you expect your returns to do?  I remember reading, might have been your initial post, but you were buying notes that were 31-120 days late.  Personally I think that is the craziest strategy for someone just getting into FOLIO, could ever do and just playing with fire.  Absolutely you are going to have a slew of charge-offs with this kind of excessively risky strategy.  I can only guess that you were overpaying for notes at 31-120 days late and then turned around and tried to sell them at the same discount and could not find any takers. 
https://forum.lendacademy.com/index.php?topic=3551.msg39227#msg88888888Quote"> from: screwedbylendingclub on January 04, 2017, 11:17:52 PM