Selling all 2021 notes

I finally decided to attempt to sell all the notes I have that don’t end until 2021. I’ve decided to wind down my account and I want it emptied by the end of 2020. It is an IRA account and Lending Club pays the annual custodian fee if you maintain a certain balance. I don’t remember what that is but I’m not taking a chance,

I’m not alone in “bailing out”. The forum I mentioned last time, lendacademy.com has many serious investors. You can get a lot of good information and advice on that site. But there is a general sense of unhappiness with Lending Club’s screening process. Several posters have mentioned that they too are getting out of Lending Club.

That must be a trend. Lending Club just sent an Email announcing a new and revised screening model for notes. They expect to get higher quality loans and lower charge offs. The user community is skeptical and views this as an admission of poor performance in the last few years.

I collected my 2021 notes and offered them for sale at a 1% discount. This really translates into basically asking for the remaining principle since FOLIOfn applies the discount to the principle plus accrued interest at the time of the offer. I’ll check my sales status twice a day. Naturally, I have a spreadsheet of the counts.

	Mon PM	Tue AM	Tue PM	Wed AM	Wed PM
Offered for sale	110	98	76	76	68
Principle	$2,235.73	$1,994.53	$1,549.60	$1,549.60	$1,393.01
Asking Price	$2,238.89	$1,997.97	$1,554.08	$1,554.08	$1,396.76
Discount	100.14%	100.17%	100.29%	100.29%	100.29%
Cancelled	6	6	8	8	12
Sold	4	16	36	36	40
Total Sold Price	$71.82	$312.74	$714.37	$714.37	$788.33

Quite a few of the notes have sold, but the rate is slowing down. So, on Wednesday PM I increased the discount from 1% to 2%. I’ll update the results before the weekend. Follow me on Twitter @billlanke and I post when it is done.