For some of the latest details on Lending Club including on the reactivated growth we’ve seen since reopening our platform last week (offering Notes by Prospectus), and thoughts on how our new secondary market now empowers people with even more ways to do things that previously only banks and other corporate financial entities could do, check out recent discussions Renaud’s had with Yahoo! Finance, The Wall Street Journal, NuWire Investor and Fox Business.

Social lending is getting increasingly mainstream media coverage. As Rate Ladder reported yesterday, peer to peer lending received prominent placement in Forbes Magazine and CNBC over the last few days.

Our CEO, Renaud Laplanche, was interviewed on CNBC’s Power Lunch program earlier this week to explain how social lending is helping people across America lend and borrow money at better rates.

A week earlier, CNBC’s The Big Idea with Donny Deutsch had a segment that highlighted person-to-person lending as a great financing alternative. You can read about that segment on The Big Idea Blog to get their take on social lending, and on Lending Club in particular.

To round up the week, we were pleasantly surprised to find that Lending Club was mentioned in the cover story of last week’s issue of BusinessWeek.

Social lending is rapidly gaining mainstream adoption, and this is excellent news for the Lending Club community.

Better Rates. Together.

LendingClub.com Leads Industry with Better Rates for Borrowers

SUNNYVALE, CA – December 13, 2007 – Caught in the wake of the credit crisis, people in every community across America are looking for alternatives to traditional banks and credit institutions to help meet their financial needs. Lending Club, the rapidly growing affinity-based social lending network that launched its people-to-people lending services six months ago to facilitate personal loans based on affinities or an individual's social connections, today announced its availability to lenders and borrowers in all 50 states. For the first time, everyone nationwide can use Lending Club's P2P lending services and enjoy better interest rates than those offered by traditional banks or credit cards.

"We believe an affinity-based model enables people to get better rates by leveraging their existing associations and social connections. All early indicators suggest that this approach is succeeding: We have the lowest rates available to borrowers and the best average returns for lenders in the industry, which is made possible by lower defaults" said Renaud Laplanche, founder and CEO of Lending Club. "Today, we're extending this model across all 50 states, so people can connect online, build trust and gain financial benefit on both sides of the lending and borrowing equation."

Over the course of the last six months, LendingClub.com lenders have earned an average 12.2 percent annualized return after fees and losses, and defaults on the loans have remained under one percent, which is attributed to the sense of community and trust inherent in the existing connections between members, such as their online social networks, alumni associations, organizations, geography and credit profiles.

LendingClub.com members have loaned and borrowed more than $3.5 million within the network, growing 100 percent monthly since it launched six months ago. In response to this rapidly increasing demand, Lending Club is expanding today to all 50 states and is now available at www.lendingclub.com, on social networking site Facebook and through partnerships with top university alumni associations.

To help people identify lending and borrowing opportunities, Lending Club uses its proprietary affinity-matching technology, LendingMatch™, which looks at factors such as where people went to school, where they grew up, what they do for a living and their network associations. LendingMatch is the fastest way to build diversified portfolios based on these affinities and ensure the creditworthiness of each borrower.

LendingClub.com is open to individual borrowers with credit scores at or above 640 and a debt-to-income ratio of 30 percent or less. Using LendingClub.com, borrowers can apply for personal loans of $500 to $25,000 to be funded by one or many individual lenders. Lending Club handles user authentication, bank account verification, credit checking, credit reporting, funds transfers and collections.

People-to-People Lending Service Now Available to Alumni of Georgia Tech, Kansas State and University of Michigan

SUNNYVALE, CA – October 31, 2007 - Since the early 1900s, homecoming has marked the return of millions of alumni looking to reconnect and give back to their alma maters across the country. Lending Club, the rapidly growing people-to-people (P2P) lending service, today announced the availability of its affinity-based lending service through the websites of top university alumni associations to offer a new way to lend and borrow money among fellow alumni. Lending Club is the first in the P2P lending industry to provide co-branded lending applications to online communities, including the alumni associations at Georgia Tech, Kansas State and University of Michigan.

"Whether it's helping fellow alumni pay off student loans or launch new enterprises, we offer a rewarding new way for alumni to invest directly in each other," said Renaud Laplanche, founder and CEO of Lending Club. "Lending Club's unique, affinity-based service enables people to bypass the banks to get better rates by borrowing and lending directly within communities they trust."

Lending Club launched at the end of May exclusively as a Facebook application. Since then, the Lending Club community has rapidly grown beyond Facebook to more than 22,000 users who have loaned and borrowed more than $2 million within the community. By partnering with alumni associations across the country, Lending Club further expands its affinity-based lending service across top alumni communities. Lending Club will enable these alumni associations to connect with social networks like Facebook, combining alumni benefits offered by the associations while leveraging the social interaction and viral nature of Facebook and other online communities.

"Our mission is to cultivate loyalty, tradition and lifelong relationships. Lending Club helps leverage these relationships and build new ones by giving our members the opportunity to invest in fellow Wolverines," said Jerry Sigler, senior vice president and chief financial officer of the University of Michigan Alumni Association.

To help people identify lending and borrowing opportunities, Lending Club uses its proprietary affinity-matching technology, LendingMatch™, that looks at factors such as where a person went to school, where they grew up or what they do for a living. LendingMatch™ instantly recommends diversified portfolios based on these affinities and ensures the creditworthiness of each borrower.

Lending Club is available to individual borrowers with credit scores at or above 640. Using Lending Club, borrowers can apply for personal loans of $500 to $25,000 to be funded by one or many individual lenders. To date lenders have funded 90 percent of all approved loan requests. Lending Club handles user authentication, bank account verification, credit checking, credit reporting, funds transfers and collections.

Going beyond Facebook has sparked quite a lot of press and the interest of more users, most of whom are unfamiliar with P2P Lending. Along with the opening of our website, we have also received several requests to expose raw data and performance statistics about loans and lenders. We believe this is very important in order to maintain full transparency and allow users to see the benefits of Lending Club for themselves. While we work on ways of exposing this information in a private, secure and efficient manner, we have already taken some steps in this direction. Here are some datasets we have made available:

Top Lenders by Performance

The Lender Rankings page contains a list of the top 100 performing portfolios (one per lender) containing at least $50, in order of estimated return on investment. Lenders are identified by screen name to protect their privacy. The table displays the following information:

• Portfolio rank

• Lender screen name

• Portfolio name

• Amount of initial investment

• Estimated return on investment

Click to Enlarge Image

Calculation of estimated return on investment

The estimated return on investment is calculated by taking the average interest rate of a portfolio and deducting the Lending Club servicing fee, defaults and late loans expected to default.

• The average interest rate excludes the origination fee for each loan (origination fee varies according to each loan grade)

• The late loan amount is calculated by deducting monthly payments already made from the principal

• Loans more than 1 month late are estimated to default at a 50% clip

• Default losses (projected defaults for late loans and actual defaults) are calculated using a 90% clip (10% recovery rate) for default loans

• Paid/repurchased loans are included in the current average interest rate calculation. This may change in the future

• The late/default rates are projected out to one year

• Lending Club servicing fees are 1% for all loans

• All loans are included in the calculation for late/default rates in the formula regardless of age

Formula:

Estimated ROI = Average Interest Rate - (Loss due to Late Loans - Loss due to Default Loans) - Lending Club Servicing Fee

Where:

• Loss due to Late Loans = Sum(50% * (unpaid percentage) * (interest rate of the late loan))

• Loss due to Default Loans = Sum(90% * (unpaid percentage) * (interest rate of the default loan))

• Lending Club Servicing Fee = 1% / 3 years = 0.33%

For those that want to use this information as input to other computations, we also expose this information via a downloadable XML file (available here) that gets updated daily.

Member Map

Available directly on our homepage, this feature displays information about current lenders, borrowers and issued loans plotted on a Google Map. Members are identified by screen name, and location is based on zip code only (with a certain level of Geocode randomization) to ensure members’ privacy. When an icon is clicked, a call-out displays the following information:

Borrowers / Issued Loans	Lenders
• Screen name	• Screen name
• Title / Link to the loan page	• Amount of portfolio initial investment
• Amount of the Loan	• Location (city, state)
• Amount left to fund
• Location (city, state)
Click to Enlarge Image	Click to Enlarge Image

This information is also available in XML format for external consumption here, and the file is updated on a daily basis.

As noted, we will be releasing additional data in the near future. Meanwhile, we hope the above information will be helpful to those who are evaluating Lending Club.

Better Rates. Together.