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Peer to Peer Lending News Roundup – January 5, 2013

by Peter Renton on January 5, 2013

During the week I share the latest p2p lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

Lending Club 2012 in Review, Part I: Loan Volume and Amount Funded from Random Thoughts – A look back at the Lending Club data from 2012 with the usual quality graphs and charts.

How to Apply for a Personal Loan to Pay Off Credit Card Debt from The Pay Off Credit Card Network – For borrowers looking to pay off their credit cards, how and why to do it through a p2p lender.

7 Alternatives to the Stock Market for Older Investors from AOL Daily Finance – Some pretty obvious investments here but good to see peer to peer lending making the list.

Exotic, but Dangerous from the Wall Street Journal – I thought it was interesting that p2p lending does not warrant a mention here from a journalist touting alternatives for investors chasing yield.

Lending Club 2012 in Review. Part II: Interest Rate, Credit Grade, and Loan Purpose from Random Thoughts – Looking at more data for Lending Club from 2012 and comparing it to previous years.

From the Lend Academy Forum

The Lend Academy forum is where investors go to discuss p2p lending. Below are some topics that were being discussed this week.

When to go from $25 loans to $50 loans? – Discussion about how much money you need to have invested before you can go to $50 notes and still maintain a fully diversified portfolio.

Increase In Applicants With Public Records? – At Lending Club there has been a recent increase in the number of borrowers with public records. This discussion thread gets to the bottom of this change.

Borrow-to-lend – The topic of leverage keeps coming up. Given the spread between home mortgage rates and p2p lending returns it is understandable that some people would want to take on this additional risk.

{ 5 comments… read them below or add one }

Matthew Allen January 5, 2013 at 8:32 am

Thanks for the link to my Pay Off Credit Card site in this one Peter! Very much appreciated. Keep up the great work on this site. I’m excited to follow along as I work through my strategies and increase my investment portfolio at Lending Club.

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Dan B January 5, 2013 at 12:52 pm

Most of the investment options in the WSJ “Exotic but Dangerous” article were far more volatile & (one could easily argue), “dangerous” than p2p. So I’m not surprised p2p wasn’t part of the discussion.

Reply

Peter Renton January 7, 2013 at 10:31 am

Dan, I agree that most of the investments mentioned in this article were more volatile than p2p lending but I don’t think that is the reason why p2p lending was excluded. My guess is that it wasn’t even on this journalist’s radar. I have sent him an email to make sure it is on in the future.

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Julie Hendrix January 7, 2013 at 12:19 pm

Hi Peter!

So I only have a few loan investments at LendingClub, and today I just checked my account and saw one of them says “fully paid” under status. I’m assuming this means the borrower just paid the account in full. Good for him but bad for me, eh?

Oh, and other big news: Solar Mosaic, Inc. just opened up their p2p platform to the public today out in Cali. Minimum invest is $25 and must be Cali or NY resident or “accredited investor”. They are projecting returns above 4%. Will be interesting to watch.

Have a great day!

Reply

Peter Renton January 7, 2013 at 5:41 pm

Hi Julie, Some people think it is a bummer to have a loan pay early but I am not one of those people. Unless it was paid back in full on the first payment you have made very good interest on what essentially was a short term loan.

As for Solar Mosaic, funny you should mention them because I am working on a blog post about their launch right now. I have registered on their site and received their email this morning that they are going live today.

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