Peer to Peer Lending News Roundup – May 25, 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.

Part 1: Opening a No Fee Lending Club Roth IRA from Your Personal Finance Pro – First of a two part series on using a Roth IRA to invest in Lending Club.

Filtering Loans – Part 4: Splitting the Filter to Find More Loans from LendingMemo – Step-by-step guide for using Nickel Steamroller to analyze the loan history of Lending Club.

Investing In P2P Loans: Learn To Love Defaults And Late Payments from Forbes – While I don’t love defaults I agree with the general premise of this article that we can learn to accept them.

Filtering Loans – Part 5: Moving From Tools to Platforms from LendingMemo – How to implement the filters created with the third party tools into Lending Club and Prosper investments.

Top 15 European “Peer-to-Peer” Lending Services from Equities.com – Run down of the main players in Europe with a short description of each one.

“Nous voulons transformer le système bancaire américain” from JDN – Interview with Renaud Laplanche in French but Google translate did a pretty good job with the English translation.

Stepping on the Peers from peHUB – I don’t agree with several points in this article but it’s general premise is that institutional investors are taking the peer out of p2p lending, which is obviously true.

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.

Platform -> Folio Rotation? – Should investors immediately put their notes up for sale on Folio as soon as they are issued?

FICO Distribution and Trend Over Time – Very interesting analysis from an investor who tracks changes in the FICO score of his Lending Club investments.

How to best explain P2P to the average Joe? – Those of us involved in this new industry often grapple with how to explain the concept of p2p lending to others.

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Andrew N
Andrew N
May. 25, 2013 1:19 pm

Are there any European P2P investments that are open to US investors? When I first heard of Zopa I wanted to invest to gain exposure to P2P investments not denominated in US dollars. However, it’s open to UK residents only. I have not found any foreign P2P investments open to US citizens. Does anyone know of any examples?

Martin
May. 25, 2013 6:01 pm

Peter. looks like great links. I could see some of them already interesting to me, so I will definitely visit them. For example the Forbes ones sounds good.

Todd
Todd
May. 25, 2013 8:54 pm

On the “peer” in ‘peer to peer lending’:

What it ought to mean is no “class structure” and a level playing field for all. So, no “tiered” fees, at all – and no selection biases or guarantees (or different risk or pricing structures) for any ‘peer’ investors or investees.

(Can someone translate that into French, please? “Egalite” apparently isn’t all that it claims to be…)

Todd
Todd
May. 25, 2013 9:03 pm

Pardon me; I should say, rather, that “Egalite” apparently isn’t all that it is claimed to be. (The idea, proper, remains, indeed, what it, itself, claims to be…) (To speak rigorously.)

Todd
Todd
May. 26, 2013 10:46 am
Reply to  Peter Renton

No – but some of us have been trying to build one for a few thousand years… 😉

One of the tenants, of any good building society, is that anyone’s free to join in…

Welcome aboard?

Todd
Todd
May. 26, 2013 11:09 am

Pfft – a much better response to your silly notion that individuals can’t have any impact has just struck me:

“This from the guy who’s running the defacto industry blog and setting up the conference?”

(I like New York in June – I don’t have to ask “How about you?”) 🙂

Tim
Tim
May. 27, 2013 3:51 am

Peter, I read the article above, “Opening a No Fee Lending Club Roth IRA.” He said that he filters out credit card consolidation type loans. I always considered these to be the best type of loans to be in. My thinking is that because the borrower has already been paying these loans to credit card companies, it should be an improvement to their financial situation to now pay a lower rate to LC. This should make them less likely to default. Am I missing something? After 1 year, my NAR is 10.46, but I have had five loans charged off. I just initiated the second payment of 5k into the no-fee IRA and I would really like to get it right for this coming year (not that the past year has been that bad at all).

Peter, I also want to thank you again for the heads up this past year on the 1k bonus for opening a 25k account at Prosper. I opened that account and it has been doing great (16+return currently). I wish they would offer that one again!