• Welcome to P2P Lending / NFT Lending Forum.



This was the original Lend Academy peer-to-peer lending forum, since forensically restored by deBanked and now reintroduced to

To restore access to your user account, email [email protected]. We apologize for errors you may experience during the recovery.

Main Menu
NEW LOANS:   | hitmonlee.eth 1.500 Ξ | greninja.eth 0.800 Ξ | 981.eth 3.000 Ξ | ALL

When 59% is >70%

Started by Peter, January 14, 2014, 11:00:00 PM

Previous topic - Next topic


Supposedly the rules are that you can not list a note with a negative YTM nor any note with a positive YTM but >70% markup - it must be 70% or less mark up and generate a positive YTM.  However, it has long been that even when the YTM is positive, Folio will randomly tell me that a note I have at 69% or 68% "...can only be listed for sale with up to a 70% premium..."  Occasionally it would tell me that a note at 67% is still >70% and I have just dealt with it and lowered the price.  But in the last few weeks it has gotten worse and even notes at 59% premium (with a positive YTM) I get told that it's >70% and I need to reduce it!  I had to list it at 58.72% - it wouldn't even accept 58.81%.  This is occurring randomly as other notes list without issue at ~69%.  More fuzzy math. . .


In this case it's not Lending Club's infamous fuzzy math, but rather a mistake in the displayed message.  The 70% limit is calculated based on outstanding principal only.  If you have a note  with $10.00 remaining principal and $1 accrued interest then the max you could sell it for would be $17.00 and the markup would be 54%.  It has always been this way.  At least it has since I've been involved with LC.


Good thought.  I already listed that batch, but those numbers were excluding accrued interest.  That's why I think it's strange.  I'll post the next one with its numbers and we'll see if I'm crazy, haha.


Core is right on this one, the 70% LC nanny applies to principal only.  Any accrued interest can not be marked-up or even included in the asking price (as it applies to the 70%).  That's what I get for doing math post-call." alt="???" title="Huh" class="smiley" />


Do you get a lot of buyers for the 50%+ markup?



I get the warning box a lot.  It says I am about to list a note at a discount of 20% or more.  Not sure how consistent the warning is--seems to be capricious at the lower end, not showing up around 25-35%, but I could be wrong.  Anyway, for sure it was just there on an 80% off note.  (I have four 16-30 day lates in collections).


I saw many notes for sale on FOLIOfn with markup around 67% - 68% today:." alt="" class="bbc_img" />

Also, if you hover on the question mark above the Markup/Discount header, it does mention "sum of Outstanding Principal and  Accrued Interest."

NEW LOANS:   | hitmonlee.eth 1.500 Ξ | greninja.eth 0.800 Ξ | 981.eth 3.000 Ξ | ALL