Lending Club Loans: What Investors Like to See

July 13th, 2010 | by Heather Munoz |

Lending Club lenders have increasingly been leaving notes on borrowers loan listings about what they would like to see the borrower do in order to make their loan more attractive. Often, lenders suggest that borrowers get their income verified and make sure that they get an “approved credit status” quickly.

Here’s a note left by one Lending Club lender across many loan listings:

“NO questions asked; NO answers required. Email ONLY FYI. After Lending Club Home Office < $1 deposit verifies bank account, NEXT step borrower Employment- Income verification aka “Credit Review”. Employment – income verifications independent of one another. Home Office Credit Reviewer contacts you by email or telephone. Reviewer tells you for loan category and $ value what income documents to submit- 2 Earning Statements, Direct Deposit receipts, the 2009 IRS 1040, or if self-employed or small business owner, an IRS Form T4506 Request For Copy Income Tax Return. Reviewer provides Fax Machine telephone number and will indicate doc, or pdf format if documents sent via email. When Credit Review completed the application lenders see reflects Credit Status “Approved” for $ funded loans bank deposit. An Approved Credit Status benefits borrower because: (1) Loan attract lenders waiting until review process completed before committing $. (2) After completed, funding pace will quicken. (3) After loans funded, net $ is deposited quickly into already verified bank account. Credit Review the “KEY” for borrower’s loan funding. Consider Credit Review proactive; it can be completed quickly if borrower initiated. CREDIT REVIEW SHOULD BE COMPLETED EARLY-ON. WAITING UNTIL LISTING’S END CREATES CHAIN-REACTION DELAY IN APPROVAL, FUNDING, DEPOSITING $. Credit Reviewers goal to complete required borrower Credit Review within 3-days after loan listed. If a Credit Reviewer does N-O-T contact you within 2-days after loan’s list date, AFTER verifying < $1 deposit posted bank account, ASAP initiate contact with Credit Review. Refer to “CONTACT US” link located bottom Home Page. Member Support Department open Mon – Fri 8AM – 5 PM (support@lendingclub.com 866-754-4094). Home Office closed Sat, Sun, CA, US Holidays for live telephone calls; answering machine available 24/7. Fax Machine is available 24/7. Earlier a Credit Review finished, loan “Approved” for issue, means sooner loan attracts lenders who commit their $ to fund it. Borrowers who take excessive time for Credit Review to be completed because of their procrastination, then their loan’s $ funding lags F-A-R BEHIND loans listed same day, but Credit Review quickly finished in 1 day and loan Approved for later issue. The lenders role is exclusively to fund selected loans; and to ask necessary clarifying questions. A Home Office Credit Reviewer only person who conducts borrower’s employment and income verification. They are only person to whom borrower sends ALL required income documents. “

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