Archive for May, 2010
Using Lending Club’s Note Trading Platform to Invest in Peer to Peer Loans
Posted by: | CommentsLending Club, a website which allows its members to loan each other money through 3 or 5 year unsecured loans, currently only operates in certain states ,but other investors can buy existing loans through its note trading platform which is powered by Foliofn.
Lenders can purchase notes if they reside in any of the following states: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kentucky, Louisiana, Maine, Minnesota, Missouri, Mississippi, Montana, New Hampshire, Nevada, New York, Rhode Island, South Carolina, South Dakota, Utah, Virginia, Washington, Wisconsin, West Virginia, and Wyoming.
Investors in other state’s can’t fulfill borrower’s requests directly, however, there’s no limitation which prevents them from buying out existing loans through the note trading platform. Lending Club’s note trading platform essentially allows for investors to have some form of liquidity. Before the note trading platform was available, Lenders were essentially stuck in the loans they had originated for the duration of the loan.
Lenders that want to sell their position in a loan can do so through the note trading platform if they find another investor to purchase the loan at an agreed upon price. Lenders often sell notes through the platform if they need the money for another purpose or if they think the loan will go into default.
If you live in a state where investors can’t participate in Lending Club directly, using the note trading platform can be a good way to participate in the peer to peer lending market, but be careful in the loans that you fund and be careful not to pay too much for a loan.
Some investors have also found success on Lending Club buy purchasing delinquent notes with the hope that the borrower will become current. Hank from Favstocks did just that, writing, “I recently bought a loan directly from another lender who had invested $25 dollars in May 2009. After seven months of paying on time, the borrower started having trouble making loan payments around Christmas. I ended up buying the remaining amount of the loan, approximately $15, for $5 in the hopes that eventually the lender will make good on his or her commitment. My hunch paid off, and yesterday, I received my first payment, interest, and late fee from the loan.”
This article (Using Lending Club’s Note Trading Platform to Invest in Peer to Peer Loans) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
Prosper Marketplace Resolves Some Issues Related to Loan Service Platform Migration
Posted by: | CommentsProsper.com, a company which operates a peer to peer lending marketplace, went through a migration to a new loan servicing platform in early May, leaving many users of the website frustrated by errors that impacted features on Prosper’s website and customer’s accounts.
The company apologized on its blog for the mistakes, saying, “What should have been a seamless front end experience for users didn’t turn out as such. We have resolved many of the most common issues and are getting closer to resolving the remaining ones.”
As part of the migration, Prosper took off loan performance information from its website until it could be setup with its new loan servicing platform, leaving investors who use that information to determine which loans to fund disappointed with the company. Prosper.com wrote on a blog post, “We have also temporarily suspended the display of the detailed loan performance data on our marketplace performance page while we reconcile the data with our new loan servicing platform. We apologize for the inconvenience this is causing. In early June, we will be restoring access to the loan performance data and all historical information, including the period in which it was unavailable. ”
There were also a limited number of cases in which there have been uses with the website’s user interface and the loan servicing platform, resulting in inaccurate data being displayed to Prosper members on their accounts. Prosper.com says that they have resolved the majority of cases that have suffered from this issue and the remaining will be taken care of this week.
This article (Prosper Marketplace Resolves Some Issues Related to Loan Service Platform Migration) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
American Banking News Twitter Updates for the Week of 2010-05-30
Posted by: | Comments- European bank jitters as Spain steps in to save Cajasur – Telegraph.co.uk http://tinyurl.com/2dggzhm #Econ #
- Democrats set for last banking rules battle – Financial Times http://tinyurl.com/28bobks #Econ #
- Reed: Financial regulation bill moving forward – Providence Journal http://tinyurl.com/348m8j8 #Econ #
- Bank bill doesn't guarantee safety, but it's a good start – USA Today http://tinyurl.com/3amtxnh #Econ #
- Japan Keeps Economic View Unchanged Despite Stronger Recovery – Wall Street Journal http://tinyurl.com/256e2ya #Econ #
- WORLD FOREX: Euro Drops As Spanish Bank Takeover Renews Concerns – Wall Street Journal http://tinyurl.com/2anbba5 #Econ #
- Euro Falls as Bank Failure in Spain Fuels Global Growth Concern – BusinessWeek http://tinyurl.com/2abgogp #Econ #
- WORLD FOREX: Euro Falls; Spanish Bank Failure Reignites Worry – Wall Street Journal http://tinyurl.com/38hhuja #Econ #
- US stocks end lower after late-day tumble; financials drop – MarketWatch http://tinyurl.com/3am95vo #Econ #
- US Stocks Mixed; Concerns About Euro-Zone Banking System – Wall Street Journal http://tinyurl.com/383d2gr #Econ #
- Euro down sharply as banking concerns resurface – Salt Lake Tribune http://tinyurl.com/3ycstbk #Econ #
- Euro Falls for 2nd Day on Concern Europe Debt Crisis Spreading – BusinessWeek http://tinyurl.com/38vjpuk #Econ #
- Euro Falls on Concern Spain's Bank Woes Signal Crisis Spreading – BusinessWeek http://tinyurl.com/2ajvg9h #Econ #
- GLOBAL MARKETS: European Stocks And US Stock Futures Slump – Wall Street Journal http://tinyurl.com/25wykyb #Econ #
- Despite bank failures, Ga. sheds bank examiners – BusinessWeek http://tinyurl.com/2cuyot6 #Econ #
- US Stocks Slump As Global Concerns Weigh On Banks, Industrials – Wall Street Journal http://tinyurl.com/2fqphro #Econ #
- FOREX-Euro nears four-year low vs dollar on debt worries – Reuters http://tinyurl.com/25338vk #Econ #
- European Stocks Tumble to Eight-Month Low on Spain, North Korea – BusinessWeek http://tinyurl.com/2bpflak #Econ #
- HEARD ON THE STREET: Spain Needs to Accelerate Bank Reform – Wall Street Journal http://tinyurl.com/26y5vtu #Econ #
- Geithner to urge Europe bank stress tests: report – Reuters http://tinyurl.com/2aalflp #Econ #
- Senators named to work out bank reform bill – MarketWatch http://tinyurl.com/2b4y5po #Econ #
- Spain Needs to Accelerate Bank Reform – Wall Street Journal http://tinyurl.com/29depfq #Econ #
- EURONOMICS: Euro Crisis Darkens, Spain Takes Lead – Wall Street Journal http://tinyurl.com/2a8rxaf #Econ #
- Frank Targets Requirement to Spin Off Operations – Wall Street Journal http://tinyurl.com/22s4sqe #Econ #
- FOREX-Euro falters as bank concerns weigh – Reuters http://tinyurl.com/2e7ydq9 #Econ #
- Deutsche Bank Repeats EU Bank Crisis Fund Support – Wall Street Journal http://tinyurl.com/37796tb #Econ #
- Banking levy plan makes EU look naive – The Guardian http://tinyurl.com/32jd7gc #Econ #
- Plenty of ammunition left in ECB's arsenal – Reuters http://tinyurl.com/385a9fm #Econ #
- Hong Kong down early as banks, telecom shares fall – MarketWatch http://tinyurl.com/36nldnf #Econ #
- Bank failure insurance plans split EU nations – Financial Times http://tinyurl.com/35orxyc #Econ #
- EU Proposes Bank Levy to Pay for Future Crises – New York Times (blog) http://tinyurl.com/32choff #Econ #
- US banking reform sounds hollow – Economic Times http://tinyurl.com/38cjlh8 #Econ #
- Royal Bank, CIBC, TD Bank Profits Miss Estimates – BusinessWeek http://tinyurl.com/39ejc6p #Econ #
- Europe Mulls Bank Guarantee Tax Plan – BusinessWeek http://tinyurl.com/35qzdbc #Econ #
- Bank Hapoalim – Off to a Good Start in 2010 – MarketWatch (press release) http://tinyurl.com/337m9tf #Econ #
- National Bank Declares Dividends – MarketWatch (press release) http://tinyurl.com/3a5h6xf #Econ #
- French Bank Body Chief: Levy Would Cut Finance To Economy – Wall Street Journal http://tinyurl.com/34yuzez #Econ #
- Capital City Bank Group, Inc. Board of Directors Announces Quarterly Dividend – MarketWatch (press release) http://tinyurl.com/2u9yxpl #Econ #
- Bank of America Announces First Year Results of 10-Year, $1.5 Trillion … – MarketWatch (press release) http://tinyurl.com/3a6wrjn #Econ #
- China orders review of local government finances – BusinessWeek http://tinyurl.com/3yblwg4 #Econ #
- Japan's Bonds Post Weekly Loss on Recovery Signs, Stock Gains – BusinessWeek http://tinyurl.com/2uqvfc4 #Econ #
- Chinese Regulator Approves Big Fund Raisings – Wall Street Journal http://tinyurl.com/3×3j2gd #Econ #
- Fed Boards Without Bankers a "Travesty", Say Directors – ABC News http://tinyurl.com/32thjwz #Econ #
- Harbor Bank of Maryland reaches agreement with FDIC – Baltimore Sun http://tinyurl.com/326dxwx #Econ #
- FASB Plan Is 'Destructive Idea,” Ex-FDIC Chief Says – BusinessWeek http://tinyurl.com/37kyo2v #Econ #
- City National Acquires Banking Operations of Sun West Bank of Nevada – MarketWatch (press release) http://tinyurl.com/34m8tg6 #Econ #
- Fifth Third Names Ex-FDIC Head William Isaac as Bank's Chairman – BusinessWeek http://tinyurl.com/354kgpf #Econ #
- Bank of Florida shuttered – The News-Press http://tinyurl.com/25tut2n #Econ #
- Bank of Florida's Lenders Closed as Bank Failures Climb to 78 – BusinessWeek http://tinyurl.com/2foza7c #Econ #
- Ex-FDIC chairman Isaac to lead Fifth Third board – MarketWatch http://tinyurl.com/252tzxw #Econ #
- Bank of America's focus shifts during CEO's first 100 days – Seattle Times http://tinyurl.com/2fw3u7v #Econ #
- Meg Whitman's name arose in federal probe of Credit Suisse bank – Los Angeles Times http://tinyurl.com/27d5to8 #Econ #
- US sees 78 bank failures in 2010 – Times of India http://tinyurl.com/34vg58l #Econ #
This article (American Banking News Twitter Updates for the Week of 2010-05-30) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.