What is the “Loan is being issued” Status on Lending Club?

My daily import scripts detected a new status that they have never encountered before: Loan is being issued

Lending Club does not publish a detailed API like Prosper does so I didn’t know about this status, and in fact it may even be new (See https://www.lendingclub.com/public/loanDetailHelp.action).  The loan that triggered an unknown status alert to me this morning was 847448.

What makes this loan different?

The original loan request was for $21,200, however only $20,975 (98.94% funded) was invested. It appears Lending Club is going to lend the remaining about so the loan has a status of “Loan is being issued“.

Perhaps the loan status always appeared like this for loans in this state. Maybe it’s just a way to indicate that the loan will be issued even though there was not enough lent by the Lending Club lenders. Regardless I am going to keep an eye on this loan. I suspect within a few days the status will change to Issued and I will be able to conclude that indeed the borrower did not raise enough from lenders and LC has to kick in the rest.

Update:

This loan was issued with partial funding. The status loan is being issued is a temporary state to indicate the funding was not reached 100% This gives me another idea! How do partially funded loans perform.

Michael

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