I decided to review the statistics at Lending Club and I scrolled down past the table towards the CSV file of data. There I noticed an amazing figure — Loans Not Approved for Listing. 5,137 loans for $44.9 million dollars have been denied for listing on Lending Club. The total number of loans approved is only 645 for $5.2 million. Only 11.2% of all loans submitted to the site were approved for listing, so Lending Club is attempting to keep out many of the lower quality lenders despite the fees that they could earn for originating possibly many of those loans. [Update: See the comments by Rob at Lending Club to know what loans are denied.]
I am glad to see how many loans they are filtering out, but one statistic on the page bothers me – the percentage of Lending Club’s late loans is currently premature to present in my mind. Currently, the percentage late is listed as 0.47% with a footnote that reads:
“A loan status changes from ‘current’ to ‘late’ when a payment has not been made within 15 days after its due date. For purposes of the statistics presented on this page, the entire amount of principal remaining due (not just that particular payment) is then considered ‘late.’”
A better footnote would also include that the average loan is only 79 days old. (I mentioned in an earlier post that Prosper posts a similar short-term statistic, but Prosper does footnote the time frame covered.) Seventy Nine days… that means the average borrower has only needed to make two out of 36 payments. Approximately 162 loans out of 633 issued (26%) have not had a single payment due yet (less than 30 days old), so those should be entirely thrown out of the late calculation. A better number is actually 0.849% late, but again it is still premature to present that statistic. ( (4 late / (633 – 162)) = 0.00849)
Notes: 1) On the fully paid loans, I had to estimate the issue date (#90376 and #122065) because the issue date field is blank. I used the average of the issue date of the loans on either side. 2) All statistics are current as of Thursday January 10th.