Peer Lending Advisors manually underwrites every loan, which includes reviewing every borrower’s employer and ensuring they have a steady job. A basic guiding principle is that people with unsteady jobs (think minimum wage and high-churn jobs) have higher default rates, and people…
Blog Archives
Why loan filters alone can lead to bad investment decisions
Peer Lending Advisors uses its own proprietary algorithm to select P2P Loans to invest in, and doesn’t just stop with an algorithm and loan filters. Peer Lending Advisors manually underwrites every loan, including reading all the supplementary information that a computer/loan filters…
Posted in Computer Algorithm, Human Underwriting
Maximizing Online Lending Returns: It’s about avoiding losses
If you invested in the Dow 5 years ago, you’d have made about 32% on your money. Not bad. However, if you’d have managed to avoid the 5 biggest daily declines for the Dow, ranging from 4-8% losses in a single…
A lesson I learned while working in the Credit Card Industry
Back when I worked for Capital One, I was given a short term assignment to join a team of fellow business analysts and statisticians to rebuild one of our Subprime credit models. We used tools like SQL, SAS, and CART…
Posted in Banking, Computer Algorithm
Peer-to-Peer Lending Advantage: Geographical Targeting (or avoidance)
Back when I worked for a large bank, I was part of a project to re-create our credit models to remove one variable that was deemed too risky to use anymore. In other words, I was making a new investing algorithm to…
Posted in Computer Algorithm