Lending Club Investor News

 

 

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Q3 2019 LendingClub Platform Update

"To ensure balance in our marketplace, we make periodic adjustments based on investor feedback, marketplace demand, loan performance, and the general interest rate environment. In line with that goal, we continue to optimize our portfolio mix through targeted cuts to certain loan grades and terms within the standard loan program."

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New Interest Rates of of 8/6/2019

"Based on the credit profile of each loan applicant, every corresponding Note is assigned a grade ranging from A1 to D5 with a corresponding interest rate."

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Q2 2019 LendingClub Platform Update

"We continue to employ a “test and learn” approach which we use to both optimize investment offerings to reflect investor demand as well as adjust to and anticipate changes in borrower behavior. As part of this, and in line with our heightened focus on core customers, we expanded our balance transfer product. These loans enable borrowers looking to consolidate debt or refinance their credit cards the ability to seamlessly pay off higher-interest debt."

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Q1 2019 LendingClub Platform Update

Note: This update includes important information about Grade E loans as well as updated return forecasts.

"Even with lingering recession concerns, economic indicators including GDP suggest continued stability. While there is softness in some regions overall, consumers still appear healthy, with the unemployment rate broadly stable, and payrolls and disposable personal income still rising, albeit more slowly."

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Continuous Evolution & Recent Credit Changes

Note: This update includes important information about Grade D and E loans. This is a must read for investors!

"As a credit marketplace connecting borrowers and investors, LendingClub continuously adjusts to serve both borrowers and investors. To best serve our members, frequent adjustments are made to the platform based on a variety of inputs like investor feedback, marketplace demand, loan performance, and the general interest rate environment."

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Marketplace Loans: How Might They Perform During A Downturn?

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"Given the length of the current economic expansion, last year’s stock market dips, and growing recession concerns, investors have begun positioning for a more challenging investment environment. LendingClub’s experience of growth through the post-financial crisis period—to become the marketplace loan industry’s U.S. leader—supports our belief that marketplace loans’ unique features may make them resilient in a range of economic environments."

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Q4 2018 LendingClub Platform Update

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"In 2018, the credit policy applied to LendingClub's marketplace was tightened and interest rates were raised several times. Effective yesterday, February 19, 2019, the credit policy is being tightened again on certain loan grades and terms, and interest rates are increasing by a weighted average of 57 basis points across grades B-E."

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Marketplace Lending in a Rising Rate Environment

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"As interest rates march steadily higher, investors are asking how marketplace loans might perform in a different rate environment. Because marketplace loans’ risk and return dynamics are different from those of more traditional fixed income assets, they can offer investors benefits in various environments."
 

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Q3 2018 LendingClub Platform Update

“Our goal at LendingClub is to provide value to both sides of our marketplace, offering attractive rates for borrowers and an opportunity for investors to earn a competitive return. To maintain marketplace balance, the platform adapts and recalibrates often based on multiple factors: the ever changing macro environment, competitive insights, supply and demand for credit, credit performance, investor feedback and more.

In line with that goal, on Tuesday, November 6, 2018, interest rates rose by 35 basis points on all subgrades of A 36 and 60, and by 25 basis points on all subgrades of B 36 and 60. The increase in rates is intended to be in line with the overall interest rate environment shifting from historic lows.”

 

 

Q2 2018: Updates to the LendingClub Platform 

“A key aspect of LendingClub's mission is our aim to deliver competitive risk-adjusted returns to investors. Today, as part of our regular release schedule, we announced updated loss forecasts and projected returns, as well as other key updates to the platform.”

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Q1 2018: LendingClub Platform Update

“LendingClub operates a credit marketplace where borrowers can access capital at competitive rates and investors can earn competitive returns. To maintain marketplace balance, we adapt and recalibrate often based on a changing macro environment, competitive insights, supply and demand dynamics, credit performance, investor feedback and more.”

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Q4 2017: An update from our CIO 

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“A core strength of LendingClub’s marketplace model is the ability to incorporate data insights quickly in order to responsibly adapt for the benefit of borrowers and investors. We share insights on loan performance regularly to give investors a sense of what we are observing on the platform.

During the fourth quarter of 2017, we continued to see credit performance across the industry and on the platform return to long-term averages. We see sizeable opportunities for investors in consumer credit, supported by strong borrower profiles on the platform and solid economic fundamentals.” 
 

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Fall 2017: Behind the Investment Platform: The LendingClub Borrower

 

“Fall 2017 is the second installment of our seasonal Marketplace Insights series. The series is designed to share periodic insights directly with our audience regarding how LendingClub’s marketplace works and performs. In this issue, we focus on the borrower characteristics of those receiving loans through the LendingClub platform and how investors may leverage that information to make decisions that fit within their objectives.

From 2007 through 2017, LendingClub has matched $31 billion investor dollars with 2 million borrowers’ loans. Investors frequently want to know who the borrowers are and why they’re looking for credit. Are borrowers distressed and looking for relief, or on the path to financial prosperity? What needs are they solving for?” 
 

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Q3 2017: An Update from our CIO

A core strength of LendingClub’s marketplace model is the ability to incorporate data insights quickly in order to responsibly adapt for the benefit of borrowers and investors. We share insights into platform performance regularly to give investors a sense of what we are observing on the platform and what they can expect.

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The Power of Data & The Next Generation Credit Model

 

“LendingClub is built on data. We use it in every aspect of our business – from operations, to credit, to the way we hire employees – and as the basis for continued innovation on behalf of investors and borrowers alike.
Starting September 8, 2017, we are rolling out the fifth-generation credit model, which further leverages machine learning and 10 years of LendingClub data to better assess and price credit risk. The model went live for certain borrowers on September 8 and was ramped up to the vast majority of borrowers a few days after. (A small borrower segment will continue to be evaluated under the prior credit model and we are working to roll it out for those borrowers next year.) LendingClub has helped 1.5+ million borrowers since 2007; each borrower provides unique insight that can be leveraged in future credit decisions.

The new credit model is the latest in LendingClub’s long history of innovation: it’s a more powerful, complex, multi-variable model that takes advantage of a wealth of proprietary data and best-in-class modeling techniques. It’s more predictive than a borrower’s FICO score alone, and is 24% better at differentiating the likelihood of a borrower charging off than the fourth-generation model.” Read more… 

 

Q2 2017: An Update from Our CIO

 

A core strength of LendingClub’s marketplace model is the ability to incorporate data insights quickly in order to responsibly adapt for the benefit of borrowers and investors. We share insights into platform performance regularly to give investors a sense of what we are observing on the platform and what they can expect.

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Insights on Interest Rates

This month, we are launching a new series for investors—LendingClub’s Marketplace Insights—to share periodic insights into how LendingClub’s marketplace works and how it performs. In this first issue of LendingClub Marketplace Insights, we will focus on loan interest rates and their impact on an investor’s total return.

When it was founded 10 years ago, LendingClub began offering investors access to consumer credit through its online marketplace. Ever since, an increasingly diverse set of investors—from individuals and financial advisors to institutions and banks—have used the platform to seek to achieve their financial goals. Because the asset class is new to many, it’s important to understand there are four primary factors that can impact the net return on an investor’s LendingClub portfolio: loan interest rates, loss of principal and interest due to charge-offs, prepayments, and fees. While each of these components is important, as is the case with all fixed income assets, interest rates are key to an investor’s total return.

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Quarterly Investor Update from Our CIO

A core strength of LendingClub’s marketplace model is the ability to incorporate data insights to quickly and responsibly adapt for the benefit of borrowers and investors.
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More Data Coming for Investors

We’re always seeking feedback and looking to make the investor experience better and more transparent. In that spirit we’ve got a couple of changes coming up that we wanted to share:

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New and Improved Statistics Page

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We recently redesigned our Loan Statistics page to make our data even more accessible and useful for our borrowers and investors. Here’s what’s new:

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New: Loan Origination Data Update

 

An update for users of our platform statistics and historical downloadable file.  We are changing the frequency with which we post data about new loan issuance on the platform. This change relates to overall platform data that we provide on the Lending Club Statistics Page. The change will not reduce the frequency of data updates about Notes that you hold.

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New Statistics Charts to Help Investors Understand Returns

 

At Lending Club, we believe in providing our investors with as much information as possible so they can make informed investing decisions.
We recently added two new sections in the Performance section of the Lending Club Statistics pages. These sections provide detailed information about how actual Lending Club accounts perform.

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New Adjusted Return Metric

 

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.