As of November 7, 2017, F and G grade Notes will not be available on the LendingClub investor platform. We are consistently assessing the value our product delivers to our investors, and have noticed an increase in prepayment and delinquency rate in F and G grade Notes. We feel it is in the best interest of our investors to remove F and G grade Notes while we test new capabilities and refinements to the underwriting and pricing criteria and determine how to best offer a better experience for both borrowers and investors in the F and G segment.
Q: If I currently own F and G grade Notes, what happens to my money?
A: Your money will continue to remain invested in the existing Notes in your portfolio as normal, (e.g. through maturity, until the borrower prepays, or if a borrower charges off).
Q: If I have automated investing turned on to include F and G grade Notes, what happens to my money?
A: The money that would have been set to allocate to F and G grades in the future will be allocated to a cash reserve. To be 100% invested going forward, you’ll need to go into your LendingClub investor account and change your investment mix so that your funds are fully allocated to grades A-E.
Q: How can I adjust future allocations from F and G grade Notes into A through E grade Notes?
A: You’ll need to change your allocation within your investor account. To update your saved filters please follow these steps:
- Log in to your account.
- Click on Browse Loans from the Account Summary page.
- Once on the Browse Loans page, click Open next to the “Filter Loans” section on the left side of the page.
- Select the saved filter that you wish to modify from the pop-up.
- Confirm that the correct filter was selected and modify as you see fit.
Click Save to save your changes.
Be sure to check that allocation percentage to make sure it matches your desired strategy. If you want to reinvest 100% of your cash, your allocations should add up to 100%.
Q: What is the impact to my loan filters using F and G criteria?
A: For investors with filters including F and G grades, the system will no longer factor in the F and G attributes when returning results (upon opening or upon clicking Update Results). The system will remove the F and G criteria when the investor saves the filter.
Q: Why am I still seeing F and G grade Notes in my investor account?
A: If you’re a current investor with LendingClub, you may still see F and G grade Notes. This is because you may: 1. Currently own F or G grade Notes, or; 2. Purchase F or G grade Notes on the secondary market through Folio Investing, Inc., in which case such Notes would become a part of your portfolio.
Q: Will you bring F and G grade Notes back on to the platform?
A: We are currently testing refinements to underwriting and pricing criteria for grades F and G. Following the conclusion of these tests, we will determine our course of action, including if and how F and G grade Notes will potentially be reintroduced on the platform. The objective of the tests is to produce better experience for both borrowers and investors in the F and G segment.
Q: Why now?
A: Every quarter, we review product performance. During our third quarter 2017 forward-looking analysis, we saw increases in delinquency and prepayment rates in F and G grade loans. This update allows us the opportunity to re-assess how we can best deliver value to our investors through the platform.
We appreciate your continued business. As always, if you have any additional questions, please contact us at firstname.lastname@example.org or toll-free at 888-596-3159 Monday – Friday from 7 am – 5 pm PT.