Responsible lending, better returns
With 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.