How Lending Club Deals With 121+ Days Late

Much to my chagrin, I have managed to pick a Lending Club loan that is now 121+ days late. I thought it a good time to go over how Lending Club handles these situations… They take a different approach and it seems a much more clear cut approach from my account’s perspective.

Here is the page where Lending Club details there approach: http://www.lendingclub.com/info/collection-agencies.action. Here is the relevant portion:

If a payment can not be collected for 3 months after the loan was sent to the collection agencies (that is, 120 days past due), the loan will be removed from the lenders’ portfolios as a total loss (a charge-off). Lending Club will continue to collect on the charged-off loans until the loans are finally packaged and sold to a debt purchaser, which may take another six to nine months. Any recovery of the loan will be credited to the lenders’ accounts as extraordinary income.

The key points:

The loan is immediately defaulted as a total loss. (Total loss is good from a tax perspective.)
Any future collections or debt sale will be credited back as extraordinary income.
Lending Club will work the loan as it see fit and gives no definite time frame on a sale: “may take 6 to 9 months”

This is a clean approach from my perspective (trying to keep an accurate representation of the account in Quicken.)

I also now have a total of 4 loans from Lending Club that are in some form of late and I continue to move money out on a semi-regular basis until such time as Lending Club reopens to lenders. Here is my current account screen.

Lending Club Defaults

2 Comments | May 16, 2008 | Filed Under Collections, Lending Club | 2 Comments

Zopa, Lending Club, and Kiva all Score at The Webby Awards

Zopa took the Webby in Financial Services (Mint was People’s Choice). On Zopa you can buy a CD and help reduce my loan without giving up any of your entitled interest (current rate 3.75%): Start Here When Buying Your CD

Lending Club took the Webby in Banking / Bill Paying (Mint was People’s Choice). Lending Club is currently in a quiet period and is not currently accepting new commitments from lenders or allowing new members to register as lenders.

Kiva took the People’s Choice for Charitable Organizations NonProfit. Kiva is a very worthwhile charity, but you don’t make any interest.

Here is the website to see all the nominees and winners: 12th Annual Webby Awards Nominees

No Comments | May 15, 2008 | Filed Under Kiva, Lending Club, Zopa | Leave a Comment

The Marketplace Survey for April — More and Better Listing Volume

Prosper released the April marketplace survey today… The comentary was from CEO, Chris Larsen.

In April, we saw the supply of loan listings with an attractive risk-return tradeoff hit an all time high and approximately double compared to the prior month. At the end of March, the supply of loan listings with an attractive risk-return tradeoff was approximately $5 million; and at the end of April the supply increased to approximately $11 million and has remained at that level into May.

This significant increase in the supply of loan listings with an attractive risk-return tradeoff is attributed to the fact that on April 15 we commenced our business arrangement with WebBank, a Utah-chartered industrial bank. Through our agreement, all loans originated through the Prosper marketplace resulting from listings posted on or after April 15, 2008 are made by WebBank under its bank charter. Prosper provides services to WebBank in connection with the origination of such loans and Prosper services loans made to Prosper borrowers on behalf of registered Prosper lenders who purchase such loans. In effect, this partnership opened the platform to more borrowers, who may have previously been constrained by low state rate caps.

Also in April, we saw the supply of prime borrower listings hit an all time high, accounting for nearly half of all loan listings in terms of dollars requested. Prime borrower originations also reached its record level of 43% of funded loans.

Currently, the significant increased supply of quality listings is providing more attractive bidding opportunities, which is making it easier for lenders to efficiently deploy more money onto the platform.

No Comments | May 13, 2008 | Filed Under Prosper.com | Leave a Comment

Add P2P Lending News To Your Website

Apparently this has ability has been built into wordpress for quite some time but a friend of mine recently pointed up that it can be done (pfblogs popular posts added to sidebar.) Here is the wordpress codex for this feature: http://codex.wordpress.org/Function_Reference/fetch_rss.

To add the p2p lending news to my sidebar I added the following to my theme…

<h3>P2P Lending News</h3>
<?php // Get RSS Feed(s)
include_once(ABSPATH . WPINC . ‘/rss.php’);
$rss = fetch_rss(‘http://www.p2pnobank.com/feed’);
$maxitems = 10;
$items = array_slice($rss->items, 0, $maxitems);
?>

<ul>
<?php if (empty($items)) echo ‘<li>No items</li>’;
else
foreach ( $items as $item ) : ?>
<li><a href=’<?php echo $item[‘link’]; ?>‘
title=’<?php echo $item[‘title’]; ?>‘>
<?php echo $item[‘title’]; ?>
</a> (<?php echo $item[‘dc’][‘creator’]; ?>)</li>
<?php endforeach; ?>
</ul>