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Savings Account Rates at Local Banks or Why I love P2P Loans

I am often asked why I like to utilize peer to peer lending and other related questions like “Is it risky?” The biggest reason why I am so excited about

How to Profit in a 20% Default Environment

The BTC lending environment is growing, yet volatile. While there is cause for concern, the USD lending platforms had higher defaults their first couple years too. Now 5-7 years down

Platform Risk: What Happened to Trustbuddy?

Platform risk is something mentioned here often yet rarely discussed in detail. Now we have an example of why thinking about the platform risk (the risk that the platform itself

What Types of Loans Can I Invest In on Prosper.com?

The Prosper.com loan site lists 11 different types of loans that are available. Those loans are: Debt Consolidation Home Improvement Short Term & Bridge Loans Auto & Vehicle Loans Small

BTCJam: Providing More Info but Still Falling Short

There’s quite a bit of debate in the Bitcoin Investing world about BTCJam. They are without question the largest BTC based peer lending platform and they have the most VC

Legal Corner: The Legal Basis of How Prosper and P2P Lending Works

by Jonathan Wilson, securities attorney at Taylor English Duma [Again, my comments will be in the braces otherwise this is all from our legal expert. None of this is personal

Calculating Returns: IRR or XIRR vs ROI

There’s been much debate in the blogging world for p2p lending about how to calculate returns on our loan portfolios.  Some very prominent people in our industry, including Peter Renton

How does Prosper.com rate its loans?

So let’s jump right in. How Does Prosper.com rate its loans? Prosper.com is one of the leading peer to peer lending sites on the web today. Prosper was the first

The Fitch P2P Lending Report: 5 Things They Got Right and 3 Things They Got Wrong

The Fitch ratings agency, who along with Standard & Poor’s are the 2 largest US based ratings agencies just released their first report on Peer to Peer Lending. While the

The Six Things I Learned My First Month Lending in Bitcoin

My first month investing in peer loans based in Bitcoin (BTC) has come to a close and I have learned some VERY important lessons.   Lesson 1: LC is Blind

Should Retail Investors Care About Madden v Midland Funding case?

Madden v Midland Funding Some of you may have heard about this case and that it may/might/could/is already affecting marketplace lenders. Miss Madden had a Bank of America credit card and defaulted on her payments. Midland Funding is a debt buyer and collection agency based in San Diego. Midland bought the debt of Miss Madden, who is a NY resident, and added additional interest costs to her debt balance and tried to collect the total. Madden thought this was wrong and filed suit. In Click Here To Continue

Is Marketplace Lending Still Safe? Yes, but…..

Lending Club has been in the news alot lately and most of it bad. Let's face it, Lending Club is not the only marketplace/peer to peer lender but they are the largest here in the US and they are definitely the face and the barometer of the industry. Lots of things are going on in the industry and it would not be unreasonable to ask yourself Is Marketplace Lending Still Safe? The answer is Yes it is but we need to understand the risks. More Regulation Coming After the Lending Club loan sales Click Here To Continue

AutoInvest Update: May 2016

Another month has come and gone on my AutoInvest plan so let's check results. Due to my slacking on my investment responsibilities, I have yet to implement my AutoInvest on Bitbond so my only option now is still Loanbase. Let's see how I did. This month has a little more red on it than the previous 2 and this was something I expected. The repayment history is still pretty strong though as 2 of these loan payments (1 paid, 1 not) were loans I selected and the other 72 were from my AutoInvest Click Here To Continue

Lending Club’s Letter to Institutional Investors

You may have heard of the Lending Club shakeup in their executive team last week. The shakeup came from the fraud the former executives perpetrated on a small subset of loans. In response to these actions, the new CEO Scott Sanborn wrote a letter to larger investors about what happened, what they are doing, and how they are looking at and managing data in the future. I was able to get a copy of this letter and short presentation and have it available for you to read. You can download it right Click Here To Continue

Lending Club CEO Resigns

Lending Club CEO Renaud Laplanche, generally regarded as the face of marketplace/p2p lending has resigned his position at Lending Club. The resignation is based on the discovery that $22 million worth of loans were knowingly sold to an investor when the loans did NOT meet that investors buying criteria. It's yet to be seen if additional executives or employees will be let go or not although the CNBC articles says 3 other senior managers were let go too. It should be noted that the loans were Click Here To Continue

Auto Invest Update: April 2016

To say that I have learned some things from this Auto Invest experiment is quite the understatement. So far Loanbase is really up to the task. I'm going to have to launch my Bitbond program soon based on these results. Let's look at the results in more detail for April after a profitable March. Last month I did a loan by loan assessment, which you can see on my March report here. Going forward I will be tracking total ROI (return on investment) or ROIC (return on invested capital). Let's Click Here To Continue

LoanHero: Marketplace Lending at the Point of Sale

This week the largest conference in the peer to peer/marketplace lending industry, LendIt 2016, is going on. In the days leading up to the conference, I got the chance to speak to lots of movers and shakers including platform operators. One of the most interesting lending platforms out there is a new area for p2p lending but one of the oldest forms of financing, POS financing or financing at the Point of Sale. How many of you are old enough to remember when stores used to do lay away? The Click Here To Continue

Auto Invest Update: March 2016

So far, I can honestly say I have one success and one failure on my AutoInvest program. Let's start with the failure first. This isnt exactly my fault but my adding Bitcoin to my BTCJam account happened to almost exactly coincide with their announcement that they are exiting the US in terms of lenders and borrowers. Jam has said its for 2 reasons: regulatory climate in the US and their founding as an emerging market (Brazil first) lending platform to give options to those in these emerging markets Click Here To Continue

What’s New This Week in FinTech

There's lots of news in FinTech so let's look at some of the bigger stories from the last week. Is there trouble with funding for p2p loans? A Bloomberg article from earlier this week discusses how investor service Moody's is downgrading a portion of a group of bonds issued backed by loans on the Prosper platform. Impact: For you and me this seems like it would not be that impactful as this is very large institutional high finance stuff. However, the velocity of money, how fast money moves, Click Here To Continue

Auto Invest Update #1

I'm not done setting up all my AutoInvest stuff yet, however 2 of my 3 accounts are set up: BTCJam and Loanbase.  I thought I would show a screenshot from each and let the picture tell the story. BTCJam I started with BTCJam so I thought I would show theirs first. What you don't see here are two things: 1) the term I selected caps out at 6 months so no 12 month loans for me and 2) No loans selected. There are only 13 active loans listed and most of them are 1 year loans. The resulting Click Here To Continue