This week marks the very first week that Lending Club Folio FN loan recommendations have been made on P2P Analytics. The methodology behind selecting notes on the FolioFN platform currently is as follows:
First, loans on the FolioFN platform are eliminated using the following criteria:
1. All notes that are fully paid, in default, late or are in a grace period are removed from consideration. In the future, this may be changed as notes that are in several of these states may be worth purchasing if the discount is notable.
2. All notes that have a markup of greater than 1 are removed. Again, in the future this may be changed due to the fact that some notes that show a great history may be statistically worth paying a premium for.
3. Notes with 1 payment left are excluded.
4. Notes with “Days since payment” of greater than 30 are excluded.
Following the above criteria eliminates roughly 95% of the notes currently available on FolioFN. Once this list of criteria has been applied, the remaining notes can be checked against the all time rankings via the traditional P2P Analytics algorithm. In this week’s release, any of the FolioFN notes that passed the above criteria and also belonged to the top ranked 20% of all notes issued on LendingClub were provided to subscribers.
Beginning a few weeks, limited FolioFN recommendations will be provided to the public after this service is improved. At the current time, only 1 release per week will occur as the above filtering needs to be automated fully.