Posted by Renaud Laplanche :: December 9, 2007 @ 11:39 amWith the relaunch of our Facebook application and more alumni associations and other communities joining the Lending Club network, the number of active loan listings on LendingClub.com has jumped from 60 a couple of weeks ago to 115 this morning, totaling more than $1.35 million. Lending Club borrowers with loan requests on the site enjoy an average FICO score of about 700 and a 12% debt-to-income (DTI) ratio, excluding mortgage.
Lending Club maintains very high standards to list a loan, with a minimum FICO of 640 and a maximum DTI of 30% required. This means that a large number of loan applications (over 80%) do not meet our criteria and are not able to be listed. To put this into a financial perspective, the $1.35 million of loan listings on the site is the result of about $6.5 million in loan applications over the last 13 days. The good news for approved borrowers is that over 90% of our loan listings are funded. And, to assist Lending Club members whose loan applications were declined, we now offer tools and tips to help them build up their credit.
The average return of all Lending Club lenders after 6 months now stands at 12.2% after fees and losses, while the lowest performing loan portfolio currently earns a respectable 6.8%. The average return will continue to fluctuate over time with interest rates, average credit grades assigned to the loan listings and the number of delinquent loans (currently well under 1%).
We made summary statistics available a few weeks ago, and we will continue to make good on our promise to keep exposing more data and providing more transparency. For starters, we will make all loan data (excluding personally identifiable information) since inception available on LendingClub.com later this week.
Better rates and better returns. Together.
4 Comments
What is killing people is that after they pay taxes and house payment and not much left so for emergencies etc. they use charge accounts which then have horrendous interest rates that make it impossible to get them paid down and once you start you are stuck. I remember when there use to be a cap in Washington State at about 16% max. It is awful that they are gounging people. I work at dept of social and health services and a woman and one child get a whopping 440.00 per month and what happens is an emergency comes up and those paycheck vendors get them and then it is impossible from then on . It is awful how the poor are so preyed on by all.
I appreciate that Lendingclub is continuing to make improvements to their site and the commitment to transparency with respect to loan statistics. I have a few suggestions that I think would improve the site. First, a suggestion email would be nice. I saw the info on the contact page, but the "For assistance, please send an email to us at contact@lendingclub.com." didn't seem to fit my need and "Speak out on our blog!" didn't give me the feeling that my suggestions would be seriously heeded either.
Anyway, as a lender what I would really like to see is 1) A differentiation between principle and interest in the repayments column. 2) A way to change the portfolio name after it is created. I'm tired of looking at "portfolio 1-XX"
Dear usnelcid,
Thank you for taking the time to speak out. We just made a new version of the site available, which includes a few features
that Rob will announce in a separate post, including the ability to rename a portfolio after it's been created. Differentiation between
principle and interest in the repayments column is a high priority and will be made available as part of a revamp of the
portfolio page in a few weeks from now.
Please feel free to continue suggesting new features and send additional feedback at feedback@lendingclub.com (there is
a link to that effect at the top of each page on the secure site at www.lendingclub.com). This is the best way for us to refine
priorities and allocate resources.
Thanks! Renaud
[...] of December 9th, they’ve funded 115 loans to the tune of $1.35 million. In contrast, I’m not extremely active in Prosper, but have managed to have helped funded [...]
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