Final Test Case Report

This is the final test case report. I started this test case project about 6 months ago to compare methods of acquiring Lending Club notes. My intention then was to follow the progress of the payment flow in each case for an extended period. However, since then I have decided to liquidate all my Lending Club notes and close the account. I will discuss the reasons for this and my overall opinion if Lending Club as an investment in my next post. Meanwhile it is time to liquidate the test case notes, hence this final report.

Description	Current	Other	Fully Paid	Charged Off	Index
Test 1 End in 2017	0%	0%	96%	4%	96.0
Test 2 End in 12 months	70%	0%	30%	0%	96.2
Test 3 LC Picks	92%	0%	8%	0%	98.4
Test 4 Zip Grade	97%	3%	0%	0%	98.4
Test 5 By Percent	85%	3%	8%	5%	93.3
Test 6 By Funded	85%	13%	3%	0%	97.9
Test 7 Random	83%	5%	13%	0%	96.8
Test 8 FOLIOfn Zip Grade	78%	0%	22%	0%	99.9

Six months is not a long enough period to draw rational conclusions. But is in an indicator. If I were to continue with my Lending Club accounts I definitely would not use automatic investing as offered by Lending Club. Rather, I would select the notes individually. In my case I would use the Zip Grade criteria to select new notes and pick up some of these as they become available on the secondary market FOLIOfn.

As  I indicated I will be posting my final thoughts on Lending Club in a few days. Follow me on Twitter, @billlanke to know when I do this.

 

Second week was a better week dumping notes

The second week of dumping notes on Foliofn was a pretty good week in the sense that over 250 notes were sold. The week started slowly selling a half dozen daily. On Tuesday I moved the notes from a slight markup to about a 1% discount and sold over 100 the next day. On Thursday I moved the discount down another 1% and another 100 sold. I also drastically reduce the price of notes in the grace period down significantly. Obviously discount increases grab some attention and results in more sales. I’ve moved down another 1% today. I’ve also added another 300 notes. I plan on updating in another week.

First week of dumping lots of notes on FOLIOfn

I added a few more notes to my initial attempt at selling notes on FOLIOfn. There was a total of 437 notes offered. Of these, 56 did sell. The remaining either entered payment processing and were cancelled or were unsold when the week ended. All were offered at about a 1% markup over the remaining principal.

I’ve selected another 500 notes to offer on FOLIOfn (some are repeats). These were originally purchased using Lending Club’s automatic investing. Again, the markups are about 1% and all the notes have outstanding balances over $14.50. I’ll let these alone for a few days, then I’ll start moving the markup down to see if I can increase the percentage sold.

I’ll report the results in about a week. Follow me on Twitter @billlanke to know when this occurs.

I got a message from the creator of lcpicks.com indicating that he had redone his reports page. Last summer I purchased 39 notes based on his grading and they are listed as a test case. So far all are current on their payments, with 3 having been paid off early. He’s offering a couple of weeks free trial. You might consider looking at his offer.