Lending Club’s Data Changes and Impact on NSR

Lending Club recently made a change to their data which will impact investors.

In summary:

  1. 41 Credit Elements were removed – It’s largely reverted back to what investors had in 2012 and prior
  2. Dates no longer have the day of the month, so all dates will be in the format Month-Year (Mar-1999 for example)
  3. Historical files will be updated monthly instead of daily
  4. List date was removed

Recently Lending Club also announced the removal of employment title, city, and also redacted the zip code for the borrower – leaving only the first 3 digits.

The update has already occurred on the historical listings. The API will soon follow, but the timeline isn’t know for sure as exact dates were not given.  The KB simply states, “as soon as December 10th”.

This change impacts a significant number of investors using NSR.  All affected users of NSR will be receiving automated emails  detailing which filters are affected, and what elements must be removed. You’ll likely need to re-evaluate your investment strategy because removing the credit elements will likely impact your returns.

Notable changes to NSR:

  1. All 41 filters will disappear from the back testing utility and active listings.
  2. Searches by issue date will all assume loans issue on the first of the month, i.e., a loan issued on 7/15/2014 will be treated as 7/1/2014.
  3. All intra-month charts will be removed – like the daily interest rate.
  4. Charts displaying the speed of issue, i.e., the delta between list and issue date will be removed.
  5. Prepayment data will be less accurate. There can be up to 30 days of play in the issue date in worst case scenarios

Tonight we will be rolling out the first batch of code changes to help ease the transition process. You will start to receive a warning when saving a filter with obsolete filter elements. Once we resume our historical import process, the 41 filters will permanently be removed  from the NSR website.

You can read more about this on Lending Club’s KB by clicking here

 

Michael

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