Collection Log Alert

The collection log alert is a service that monitors your notes (you must have your notes.csv file uploaded into the My Portfolio page for it to work) and when a new collection log entry is posted to any one of them, an e-mail message is sent to you to let you know of the activity. You can opt in or out of this service in the Preferences screen.

The e-mail frequency does not apply to this type of alert. Alerts are sent as soon as Interest Radar detects a change in the log.

The detection may not be on the same day a log entry is posted to the loan. This is the schedule for checking new messages:

Loan Status Verification Frequency
 In Funding Not monitored
 In Review Not monitored
 Issued Not monitored
 Current Daily from the day a payment is expected until it is received
 In Grade Period Daily
 Late (16-30 days) Daily
 Late (31-120 days) Daily
 Performing Payment Plan Daily from the day a payment is expected until it is received
 Default Every 30 days
 Charged Off Every 30 days
 Fully Paid Not monitored

Multiple Account Tracking

It is becoming very common recently for investors to have more than one Lending Club account, for a variety of reasons. The most popular reasons are opening an IRA account alongside a regular account, or having one account for each in the family that are funded (and “owned”) separately, but that the management is done by one person in the family.

Interest Radar now offers a simple way of managing multiple accounts, as long as you want the invested loans to be diversified among the accounts, i.e., you don’t want to invest in the same loan in different accounts. This new tool will help you keep diversified even if you invest in different days for each account.

(If you manage more than one account, but there is no need to keep the investments diversified across accounts, you can simply have more than one Interest Radar login, one for each account. Keep reading to decide which scenario works best for you.)

The first step is setting up the other account. Log in to Interest Radar and go to My Portfolio. In the top you will see a box with a link to the Multiple Account Tracking setup page. In that page you will be able to enter an alias for the account and create it. You can also rename your primary account from Main Account (the default) to any other description you prefer.

You’re ready to track your performance individually. When uploading your notes.csv file the next time, you’ll have the option to tell the site for which account that file is to be uploaded. Make sure you upload the right file to the right account. If you make a mistake, just upload the correct file again and the wrong file will be overwritten. Just make sure you do that right away, because if you wait for the next day, the file is not overwritten. (Interest Radar is in the Eastern Standard Time timezone, so your deadline to correct the mistake is midnight EST time).

What changes when investing?

Nothing really changes. When you invest, whatever account is logged in in Lending Club will get the order. Just switch the account in Lending Club when you’re done with your order, and keep investing. Interest Radar doesn’t need to know which account received which loan. It will know when you upload your notes.csv files. The only big difference is when uploading those files. Before investing the next time, make sure you upload the files for all the accounts you have, so that the site will know which loans were invested for all your accounts.

When investing in the Analysis page, you’ll then see the “Invested $amount” tag for loans you own in any account. What this means is that if you pick loan 1234 in account A (either in the same day or a long time before), when you do your investment session for account B, loan 1234 will show as already invested. That’s also important for Secondary Market shopping: if any account you have owns a note for a loan, you’ll see the “(dup loan)” tag under the price of the note in the results.

In the My Portfolio page and in My Notes page, you’ll have the option to view each account individually or all your accounts consolidated.

Buy Note

How to use Interest Radar’s FOLIOfn® interface to create an order to buy notes in the trading platform:

  1. Log in to Interest Radar and open the Analysis screen
  2. Check the FolioFn Listings box
  3. Select the filters to apply to the notes from any of the filter groups
  4. Run your selection
  5. In the results table, you’ll notice the last column is titled Buy and has two links in the header: login folio and view order
  6. Click the login folio link to open a new window with Lending Club’s trading platform search page. If you’re not logged in to Lending Club yet you will be asked to do so
  7. To be able to add any note to your order, select all option (Never Late, Now Current, Now Late 16-30 and Now Late 31-120) and execute the search
  8. Go back to the Analysis screen and do your shopping. Make sure to view the loan details both in Interest Radar and FOLIOfn® to gather all information about the payment status of the loan
  9. When you’re certain you want to buy a note, click the Buy link from the Buy column. The previous window that was opened for Lending Club will show the message {“selectNoteResult”:0}. This is normal
  10. Sometimes notes get sold in the platform but are still listed in Interest Radar until the next data refresh. To confirm that the note was still active and added to your order, click the view order link in the header of the Buy column
  11. When you click the Buy link, Interest Radar records your selection and will show two different links for that note: Cancel and Clear
  12. If you decided not to buy that note, you can click Cancel to remove the note from your order
  13. If you closed your Lending Club session or it timed out and you need to add the note to the order again, you can click Clear and the Buy link will appear again
  14. You also have the option to Discard the note, so that you know you already reviewed that note information and decided not to buy it
  15. Keep shopping for notes until satisfied (back to step 7)
  16. Click view order and close your order

It is very important to review all information in Lending Club to make sure the attributes showing in Interest Radar are correct. Due to timing issues (payments failing, status changes etc.), the information in the loan page may be incorrect. Interest Radar offers no investment advice and does not guarantee any of the information provided and the service is offered as a convenience to the users only. Purchasing a note is a transaction involving uncertainty and risk. From FOLIOfn®‘s page:

Notes are highly risky and only limited information is available about them. They are suitable only for investors whose investment objective is speculation. You could lose most or all of the money you invest in them. FOLIO Investing has no role in the original issuance of the notes and is not responsible for and does not approve, endorse, review, recommend or guarantee the notes or the accuracy, reliability, or completeness of any data or information about the notes.

Trading Platform Screener

Today we announce a big step for traders in the secondary market: the FOLIOfn® Screener.

Using the same interface you’re used to in the Analysis page, you can now search for notes offered in the trading platform.

To enable the feature and see the additional filters available for this type of search, select the option FolioFn Listings in the Show panel. The additional filters are:

  • Discount/Markup %: How discounted or marked up is the note, calculated from the Principal plus Accrual and the ask price
  • YTM: Yield To Maturity percent, i.e., how much the note will return if paid off, divided by asking price. Negative values mean the note is out-of-money, and paying the ask price will yield a loss even if the borrower pays as agreed until the loan is paid off
  • FICO Trend: Whether the borrower’s score improved, stayed the same, or decreased
  • Age: Note age, in months
  • Last Payment: Days since last payment. Note that “processing” may also mean the first payment is not due yet (for Issued loans)
  • Current Status: Loan status as reported by FolioFn. It may differ from the status in Interest Radar and Lending Club due to timing issues

The results will be tabulated and will contain the following columns:

  • LoanID: The Loan ID with a link to Interest Radar’s loan summary
  • NoteID: The Note ID with a link to FolioFn’s note summary
  • Age: Loan age in months
  • Remaining Payments: number of payments left to pay off the loan
  • Grade: Loan’s Credit Grade
  • Interest: Loan’s Interest Rate
  • Length: Loan length (36 or 60 months)
  • Status: Loan status as reported by FolioFn. It may differ from the status in Interest Radar and Lending Club due to timing issues
  • Last Payment: Days since last payment. A value of “N/A” may mean the first payment wasn’t processed yet, or a payment is being processed now
  • Principal: Remaining principal balance
  • Accrued: Interest accrued since last payment
  • Score: The IR01 and IR04 scores. For IR04, U means Unknown, H is High Risk, M is Medium Risk and L is Low Risk
  • FICO Trend: How the borrower’s FICO is progressing. An arrow down means it’s decreasing, an arrow up means it is improving, and a dash means it is stable
  • Ask Price: Amount you have to pay to buy the note
  • Discount %: How discounted the note is. A negative value means the note is marked up, i.e., being sold for more than the Remaining Principal plus the Interest Accrued
  • YTM %: Yield To Maturity percent if the note pays off

When you search, you can see before the results the date and time the list was updated from the trading platform. During the beta phase, the frequency of update is once a day.

The following features are not available yet but are being developed:

  • Sorting the results
  • Intra-day updates
  • Save strategies with FolioFn filters set (if you save a strategy, the FolioFn filters won’t save)

If you have suggestions or bug reports, please send an e-mail to the address shown in Interest Radar’s home page in the Beta section.

Cheers!

New Features: NAR/IRR Tracker, Loan Search, Geographic Distribution

A few additions to Interest Radar this past week:

  • The NAR/IRR Tracker is a tool to help you track the evolution of the IRR and optionally the Net Annualized Return of your portfolio. The calculation is based in your deposits to the Lending Club account.
  • With the Loan Search screen you can search any issued loan and see detailed underwriting, borrower, payment and performance information.
  • In the My Portfolio page you have now a map showing the distribution of your loans by state, color coded to represent the amount invested and the average loss rate.

In the home page you will also see now contact information to send your feedback or bug reports.

Cheers!

New Feature: Note Sales

I’m pleased to announce the first new feature in a series of tools to help investors trade in the secondary market of Lending Club (also known as the Trading Platform): the Note Sales tracker.

Now you will be able to see in Interest Radar the notes that you sold through the Trading Platform, input the sales price of the transaction, and monitor statistics such as annualized ROI, total yields etc.

This is how it works:

  • When you upload your notes.csv file, Interest Radar will detect if notes were sold by comparing with the previous notes.csv file uploaded
  • If so, you will be presented with a new box in the My Portfolio page, with specific information about your sales
  • At first, Interest Radar won’t be able to tell much about the performance of your notes in the secondary market, because there is no way to tell for what price notes were sold unless you provide that information. In the same box, you’ll have a link to a page with a complete list of sold notes, for the prices to be input
  • In the Sales list you will see all notes missing a price, or that the sale date was within the last 30 days
  • There are two ways to input the prices:
    • You may enter the sale price (not the net proceeds, but the price the other party paid for the note) one by one in the boxes; or
    • Copying and pasting the My Account page from the Trading Platform into the top text box and clicking Process. The easiest way to do this is by logging into Lending Club, clicking Trading Account under Account Summary, pressing Ctrl-A to select the whole page, Ctrl-C to copy to the clipboard, then switching back to Interest Radar and pasting the contents with Ctrl-V into the box, then pressing the Process button. If the operation was successful, you’ll see a popup message
  • After the prices were entered, either using the manual input or the Process button, you can click Save to submit the prices to Interest Radar
  • You can now go back to the My Portfolio page to see statistics about your trades

As I mentioned in the introduction to this post, this is only the first tool for the secondary market traders. More will come to help you maximize your returns, both when selling your loans as well as when shopping for good deals in the trading platform.

Cheers!

Improvements to the Investing Controls

Today a few improvements have been added to the Analysis screen, to help picking the loans to invest.

  • The loans in the table of Current Listings can be sorted by clicking over the column header
  • You have now the “Hide Invested” option, that when selected will filter out loans that you either discarded or invested in
  • Under the “My Investments” column header, you have a “clear” link that will reset your discarded and invested selections (but if you have a note invested in the loan, it will still show as invested)
  • The ROI in the list is now calculated based on the average loss rate for the score assigned to the loan

If you have suggestions or feedback, please send an e-mail to webmaster at interestradar.

Thank you!