Lending Club recently introduced a new feature to help investors understand how investment performance often changes over time.
Using actual data from Lending Club accounts, we created an interactive chart that illustrates how an investment is likely to perform over its lifecycle. This chart can help you understand where in the investment lifecycle your portfolio is and how its performance may change over time. You can also explore the various controls on the chart to visualize how average interest rate, number of Notes, investment concentration, and other factors often influence the returns of a portfolio over time.
You can find this chart on the “Understanding Your Returns” page, which you can reach via a link on your Account Summary.
We recently introduced a new feature that allows investors to model the impact of potential loan losses for past-due loans in their portfolio. This feature utilizes Lending Club's historical charge off rates on past-due loans to deliver an Adjusted Account Value and an Adjusted Net Annualized Return (Adjusted NAR). You may also use your own assumptions to customize the loss rate estimates applied to your portfolio.
Adjusted NAR may be a useful metric for investors who want to use past-due loan status as an indicator of possible future loan losses. Whether an investor uses Lending Club’s estimated loss rate or their own, Adjusted NAR is not a guarantee of future performance. Standard (unadjusted) NAR will still be available for all investors.
Furthermore, we have refined the NAR formula to deduct 100% of the outstanding principal amount of a Note at the same time as the corresponding loan charges off and is removed from the Account Value, rather than when it enters default status, as was formerly the case. This formula refinement will align changes to NAR together with changes to the Account Value.
Log in to your account to see Adjusted NAR in action.
Recently we’ve been hearing from investors who tell us they’re finding it difficult to find income verified loans on our platform. This has led some to wonder whether loan originations have slowed at Lending Club or whether we’ve changed our standards for income verification.
In fact, neither is the case. Loan issuances are at historic highs: in April 2013 $140,118,275 in loans were facilitated through the Lending Club platform, up nearly 10% from March 2013 and our highest monthly loan issuance ever. In addition we haven’t changed our standards for verifying income; we continue to conduct income verification on over 60% of loans.
So why does it seem like there are “fewer” income verified loans on the platform?
This perception is simply due to extremely high investor demand causing loans to receive 100% investor funding before the borrower income verification process is complete. When a loan receives 100% funding, we remove the listing from the platform. Lending Club is still verifying income prior to issuing a loan – however, the loan is just no longer visible on our platform since it’s reached 100% funding from investors.
By analyzing our historical Download Loan Data file you’ll better understand how income verified loans perform compared to non-income verified loans, as well as gain more insight into what loan factors matter the most.
Please feel free to reach out to us if you have any additional questions, and thank you very much for your understanding and patience as Lending Club grows to meet both investor and borrower demand.
You may have noticed that the number of Notes listed on our Web site has recently been lower than usual. This is not due to any slowdown in Lending Club's growth -- April will be our largest month yet, with roughly $140 million in loans issued, a 10% increase over March and more than triple our volume in March of last year. More loans than ever are hitting the platform.
The decrease in visible loans is due to recent record inflow of investors and capital over the past two months (we signed up 2-3 times more new investors last month than average). This capital is causing loans to be fully committed very quickly after listing -- usually within 24 hours.
We understand and apologize that the limited selection at any one time makes it harder to invest.
Actions we are taking to increase the number of Notes visible on the Platform include:
- We are, where possible, prudently reducing our investor acquisition efforts
- We are spreading larger investments out over time
- We are working on an automated investment tool that will enable you to specify your parameters and have trades executed on your behalf without the need to visit the website. (We hope to have this ready by late summer.)
In the meanwhile, it may be helpful to know that new loans are listed on the website at 6AM, 10AM, 2PM, and 6PM Pacific Time. Visiting the website at these times will allow you to see the broadest possible selection.
Thank you for your patience and support of Lending Club.
Over the past year, Lending Club has made additional credit attributes available for loans listed on our platform. Many investors have requested that these same attributes be made available for historical analysis. These attributes are currently available in the download of all issued loans on our Statistics page.
In addition to the over 40 new credit attributes, we’ve added some other relevant data fields – such as the Last Payment Date and Amount, Next Payment Date, date and range of the last Credit Score pull, a breakdown of Principal, Interest, and Late Fees received, as well as Payment Plan and Income Verification flags.
We’ve also synced up the naming conventions of this file with our Browse Notes CSV file (which is a real-time search of loan listings) and the In Funding CSV file (which is updated once-per-day).
Please note that for some of the new credit attributes, you will only see history dating back to March 2012. We’ll be maintaining the previous Issued Loans CSV download format for 120 days here. We do reserve the right to modify or eliminate listed attributes going forward in our sole discretion.
The full list of data attributes with descriptions can be found in the data glossary. Feel free to email us at email@example.com if you have any questions.