Apparently LendingClub has too many listings for their available lender dollars. This is not surprising, with any emerging market there will be imbalances. They are taking positive steps to address the problem in both the short term and long term. The source of this imbalance seems to be an influx of borrowers that have joined the site after LendingClub went national.
In the short term, as I reported last week they are offering a 5% bonus for lending at least $5K before 2/3/2008.
Today, they announced a longer term solution for managing the problem of marketplace inequity: adjusting the base rate 50 basis points. I like to see that they are open to changing their fixed rates to match market conditions. This is a much more permanent solution managing imbalances. It is similar to the fed can setting the fed funds rate to control the money supply.
This tool can also be used when the long term lender ROI is a more stable quantity; thereby, ensuring an attractive risk free rate. Fred93 (one of the top 10 lenders by volume on Prosper) dissects the Lending Club lender ROI calculation.
Anyone wishing to try LendingClub should be sure to get a $25 signup bonus by using this link to signup: Signup via this link and receive a $25 startup bonus
Related Posts -
Prosper Interest Rates On the Rise Prosper interest rates are on the rise -- in case you where wondering this is a good thing for lenders! The release of the lender bidding guidance (general announcement, secondary analysis) seems to line up with a rise in near prime and sub prime interest rates. Similarly, the graph that...... -
Update: RateLadder Prosper Listing Request Reaches 100% Funded Sometime late afternoon on Wednesday (1/30/08) my loan reached 100% funding. This is a critical first step in getting a Prosper loan. Without reaching 100% funded you cannot get a Prosper loan. Reaching 100% funded should be the 1st goal of an Prosper borrower and the tools for reaching 100% should...... -
November Prosper Marketplace Survey Released Prosper released the November marketplace survey and coresponding comentary from Chris Larsen... I particularly like the insight in the last paragraph... Of great interest is the anecdotal evidence of prime and near prime borrowers turning to Prosper for loans that would have historically been steered toward mortgage, auto, and home...... - Lending Club Liquidity and Capital Resources I read through the Lending Club S1 finally... I found a few parts of the S1 interesting... Over the next few day I will lighlight a few of my favorite sections. I am not a lawyer nor do I claim to fully understand everything that I am reading.  I am simply copying......
-
Zopa UK Review The following is a guest post from plonkee money. She writes about personal finance from a British point of view. The biggest peer to peer lending site in the UK is Zopa. In fact, I think it might be the only one. Here's how it works for Limeys. Paying Money......
Related Websites -
Long Term Capital Gains Tax Rates Increase in 2011 When people talk about the Bush-era tax cuts, they’re usually referring to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) signed by President Bush in June of 2001. Many of the provisions were set to phase in over 9 years but those were accelerated when the Jobs...... -
Introduction to Mortgages pt 5 of 5 This is part five in a five part series on what you need to know about mortgages before you buy a home. The housing market is an interesting beast, because it comes and goes, rises and falls, allows some people to flourish and brings others to ruins. If you want...... -
An interesting fixed-rate mortgage A good friend closed on land and a building loan today. He was telling me about the loan process and some of the terms of his building loan/mortgage. It had terms that I hadn't run across before, but they were interesting terms.The loan is fixed rate, 30 years, but the...... - Have Your Own Cash Pulling Affiliate Website For Free!! Links freesitesignup So … what is FreeSiteSignUp and how can it benefit you? This concept is new … it looks too good to be true! FreeSiteSignUp is a service offering Cash Pulling Affiliate websites which enables you to have your own website business Live WITHOUT having to pay a single......
-
Triathlon Terms Here is a brief glossary of terms used in triathlon training and triathlon racing. 70.3 - This term is used to describe a Half Ironman race distance, which is a 1.2 mile swim, a 56 mile bike an 13.1 mile run. 140.6 - This term is used to describe an......
- Permanent Awnings, Canopies & Tents Patio & Garden Furniture Yard, Garden & Outdoor Living
- Hybrid Short Fast Growing Shade Trees Plants, Seeds & Bulbs Gardening & Plants Yard, Garden & Outdoor Living Nursery
- Short Hybrid Fast Growing Drought Tolerant Shade Trees Plants, Seeds & Bulbs Gardening & Plants Yard, Garden & Outdoor Living
- Market Umbrellas & Stands Patio & Garden Furniture Yard, Garden & Outdoor Living
- Setting Bridge Bass-Upright String Acoustic Musical Instruments
Categories:
Uncategorized
Tags:
1 comment so far ↓
Going national was a big move on their part. It shows pent up demand. I’d like to see Prosper go national as well, but not if they have to make some deal with a bank that waters down the P2P nature of their lending.
Leave a Comment