Author Topic: P2P lending  (Read 3016 times)

squashroll

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P2P lending
« on: March 01, 2013, 11:05:56 AM »
Can anyone offer any insight as to why excluding borrowers from CA an NV is preferable (lending club).
thanks

MrSaturday

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Re: P2P lending
« Reply #1 on: March 01, 2013, 11:44:07 AM »
They'd love to offer their services to all 50 states if they can get approval from all the individual governments.

BYUvol

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Re: P2P lending
« Reply #2 on: March 01, 2013, 01:16:43 PM »
Can anyone offer any insight as to why excluding borrowers from CA an NV is preferable (lending club).
thanks

People backtesting found that those states had a higher level of default. If you look at the most recent couple of years, I don't believe that trend holds true, and was related to so many people underwater.

FYI, all my defaults were on people with DTI greater than 25%, I've since changed my filter to exclude any notes for those with DTI in excess of 20%, hopefully that stops the sinking.

squashroll

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Re: P2P lending
« Reply #3 on: March 01, 2013, 04:42:34 PM »
People backtesting found that those states had a higher level of default. If you look at the most recent couple of years, I don't believe that trend holds true, and was related to so many people underwater.

FYI, all my defaults were on people with DTI greater than 25%, I've since changed my filter to exclude any notes for those with DTI in excess of 20%, hopefully that stops the sinking.

thanks for the info.  u must be getting primarily A B and C loans w/ the dti that low? 
I've been selecting them a little at a time by hand to get a maximum spread (only 1 note per loan)...

BYUvol

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Re: P2P lending
« Reply #4 on: March 04, 2013, 10:39:04 AM »
People backtesting found that those states had a higher level of default. If you look at the most recent couple of years, I don't believe that trend holds true, and was related to so many people underwater.

FYI, all my defaults were on people with DTI greater than 25%, I've since changed my filter to exclude any notes for those with DTI in excess of 20%, hopefully that stops the sinking.

thanks for the info.  u must be getting primarily A B and C loans w/ the dti that low? 
I've been selecting them a little at a time by hand to get a maximum spread (only 1 note per loan)...

Here's my fund break down (current interest rate is about 18%): A(4%) B(16%) C(21%) D(27%) E(17%) F(13%) G(3%)

If you log in, here's an example of a nice loan I invested in:
https://www.lendingclub.com/account/loanDetail.action?loan_id=1600785

Things that stuck out to me were:
Debt-to-Income (DTI)   6.29%
Length of Employment   8 years
Interest Rate   23.63%
Loan Length   3 years (36 payments)

With these factors, I was willing to overlook their 1 DQ 79 months ago. Had they had more than 1 DQ, I would have passed, but sometimes you have to be willing to give someone a second chance if you want a nice interest rate. I want to see someone with their current employer at least 5 years, and there has to be something really enticing for me to give them a 5-year term, because that indicates to me they aren't really serious about getting out of debt.

strider3700

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Re: P2P lending
« Reply #5 on: March 06, 2013, 12:47:07 AM »
I can't see the details without logging in and I don't have an account which I can't get being canadian.  How much is the loan for?  what did they borrow the money for or do you know?
I'm just curious who would borrow money at almost 24% and what for.  I'd have to be paying for replacement organs for my kids or something at that rate.

Kierun

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Re: P2P lending
« Reply #6 on: March 06, 2013, 02:11:01 AM »
Loan amount is 26,200 for credit card loan consolidation.