Lending Club Offering a Record Number of New Loans

Total available p2p loans at Lending Club

I have been investing in new Lending Club loans twice a week for quite some time. Usually the number of loans available on the platform vary from around 700 to 1,000 new loans. Sometimes the number falls slightly above or below that range.

But in the last week that has changed. As you can see in the graphic above as of this writing there are now 1,844 new loans available for investors. Lending Club has been cranking up the volume of loans for the last week. On June 3rd there were just 833 new loans available on the platform, so in eight days they have added well over 1,000 loans to the supply. In reality they have added far more than that because Lending Club has issued over 1,200 loans in that time period and those loans have been deleted from the platform.

Investors Can Put More Money to Work

I have pretty strict criteria for my Lending Club investments. When I download the Excel spreadsheet to run my filters I usually invest in 15-20 new loans at a time. Yesterday, that number was 62. For a few weeks cash had been accumulating in my largest account but I was able to put most of that money to work yesterday.

I have spoken to the head of marketing at Lending Club about this phenomenon before. While he doesn’t give away any secrets he has said that marketing levers can be pulled that greatly impact the number of available loans on the platform. In the last week he has certainly been pulling some of those levers. It will be interesting to see if every single one of these loans gets funded over the next two weeks. I am guessing they will.

Looks like another huge month is on tap for Lending Club. Maybe they are looking to break $50 million in June…

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Frankie C
Frankie C
Jun. 11, 2012 2:53 pm

Peter, could you please share with us the process you follow to apply filters to the data in Excel. I’m asking specifically about the steps you take, not what filters you use. Do you have a spreadsheet template with filters that you could share with us? Do you then copy/paste cells from the fresh download?
If this is too much info for a comment, do you think it would be worthy of its own post?
Thanks you as always.

Dan B
Dan B
Jun. 11, 2012 3:58 pm

Will every one of these loans get funded?…………..Yes, but hardly earth shattering news.
Will every one of these loans get fully funded?…………..No
Will Lending Club break $50 million this month?………….No

Steve Z
Steve Z
Jun. 11, 2012 9:34 pm

“I have spoken to the head of marketing at Lending Club about this phenomenon before. While he doesn’t give away any secrets he has said that marketing levers can be pulled that greatly impact the number of available loans on the platform. In the last week he has certainly been pulling some of those levers.”

Is “pulling market levers” a euphemism for lowering credit standards?

Lou lamoureux
Lou lamoureux
Jun. 12, 2012 8:34 am

Frankie C after you download the csv file and open it up, Select the data. You can do that by either using the mouse to highlight the cells (very time consuming with thousands of cells) or you can plug the numbers into a cell in the top left corner of your toolbar. Highlight a few cells and you’ll see something like a2:f16 alongside the cell where you enter the formulas. LC data goes from column a to column bh. Let’s say there are 1844 records. I usually plug in a2:bh1900 to start. Then you sort the data by a column (in open office I click DATA>SORT in the box that pops up I choose a column – G interest rate and choose ascending or descending. If you only want interest rates up to 15% delete the rows above 15%. Repeat as necessary. if you only have 200 notes though you can use a2:bh200.
In open office the command is =hyperlink(z2;a2) in excel I think it’s =hyperlink(z2:a2) fill that down and you can click on that cell to open the note (if you are logged into LC). you can fill down using the mouse, click on bottom right corner of the cell and drag down or by entering the cells you want to fill b2:b16 then on the menu bar EDIT>FILL>DOWN.

Lou
Peter’s got my email if you need more help.

Danny S
Danny S
Jun. 12, 2012 12:20 pm

I’ve certainly increased my investments into LC from $500 new cash transferred per month last year to $500 every 2 weeks currently and probably soon to increase that to $500 new cash in per week. Like most others, I use very strict criteria for my loan selection process, and while I was having a hard time finding enough loans to place all $500 (plus reinvesting loan payments received) each month last year, right now, I’m finding an abundance of good loan opportunities and have more than enough loans choose from.

Brady
Brady
Jun. 12, 2012 8:15 pm

“Pulling levers” could also be offering loans at lower rates to borrowers

Joey
Joey
Jun. 12, 2012 11:08 pm

I was noticing that when I sort my main filter by newest to oldest, the newest loans all are around 32% funded, even just hours old. It seems some big investment money is pre-seeding these to one third funded.

Brady
Brady
Jun. 13, 2012 6:23 am

Using LendingClub’s statistics tool on their site, it appears FICO scores have gone down over the past year for all credit grades except A’s, while interest rates have inched up. So, a FICO score that used by be a C may get in as an B (Steve Z’s point) and the borrower in turn may get a better rate (my point). B and C FICO scores appear down 15-20 points over the past year.

That doesn’t mean LC is originating junk loans, just repricing loans. I guess they could be increasing ad spend, but I’m not sure there is “evidence” of that. I can’t think of any marketing levers at play here other than price and promotion, so I’m sure its a mix of all of these things.

https://www.lendingclub.com/info/demand-and-credit-profile.action – Play with the loan grade filter and watch average FICO score graph