Sorry for being nearly as quiet as Lending Club lately. A quick update on my Lending Club portfolio is in order. Most importantly, I had my first late loan. It is only 16-30 days late, but as most P2P lenders know, once a P2P loan is delinquent there only a small probability of recovery.
Before the quiet period started, I had participated in 51 loans for a total of $1,250.17. Two loans are fully paid, 48 issued and current, and one late (details below). The weighted average interest rate is 11.23%. So far, I have withdrawn $128 that I plan to reinvest in Prosper loans.
Details on the Delinquent Loan from Lending Club
If the following information is correct as presented, there is no reason that the borrower should have not been able to pay this loan.
Loan number: 243957
Interest Rate: 10.39%
Loan Amount: $7,500
Location: Brooklyn, NY
Home ownership: Mortgage
Current Employer: Retired
Gross Income $3,750 / month
FICO Range: 679-713
Earliest Credit Line: 09/1996
Open Credit Lines: 5
Total Credit Lines: 10
Revolving Credit Balance: $33.00
Revolving Line Utilization: 0.30%
Inquiries in the Last 6 Months: 0
Accounts Now Delinquent: 0
Delinquent Amount: $0.00
Delinquencies (Last 2 yrs): 0
Months Since Last Delinquency: 24
Public Records On File: 0
Months Since Last Record: 0
So far, I am still pleased with my Lending Club portfolio, but three years is a fairly long period. I wonder how many of the 48 remaining loans are going to hold up.