Post by james on Jan 2, 2016 10:47:31 GMT
As you perhaps saw Bondora changed credit grading calculations for loans that assign them to grades from AA through HR on 8 December 2015, including calculation for existing loans. Based on spot checks the revised ratings are not currently used in the user interface for people's existing loans. Overall for the loans I have made, all described as Estonian:
27.9% by loan count have a better rating by an average of 1.38 points
18.5% by loan count have a worse rating by an average of 1.29 points
For loans that I still own (not sold or repaid):
31.2% by loan count, 35.6% by amount outstanding, have a better rating by an average of 1.28 points
26.6% by loan count, 28.1% by amount outstanding, have a worse rating by an average of 1.23 points
This is rather interesting in the context of Bondora's claim of "Bondora Rating introduced in January which delivers net returns in line with targets on 98% of the cases". Quite a claim when 46% of the loans I have made just had their rating changed up or down!
The greatest changes I saw for loans I made included five point improvement:
loan ID 685e4bd4-fe1f-4537-8511-a1530109961e from HR to B
and four point improvements:
Worse cases were these 3 point ones:
27.9% by loan count have a better rating by an average of 1.38 points
18.5% by loan count have a worse rating by an average of 1.29 points
For loans that I still own (not sold or repaid):
31.2% by loan count, 35.6% by amount outstanding, have a better rating by an average of 1.28 points
26.6% by loan count, 28.1% by amount outstanding, have a worse rating by an average of 1.23 points
This is rather interesting in the context of Bondora's claim of "Bondora Rating introduced in January which delivers net returns in line with targets on 98% of the cases". Quite a claim when 46% of the loans I have made just had their rating changed up or down!
The greatest changes I saw for loans I made included five point improvement:
loan ID 685e4bd4-fe1f-4537-8511-a1530109961e from HR to B
and four point improvements:
- be1ccf64-8338-4cd7-a9ba-a2ba00cbd9d4 from F to B, Estonian A 900 36 month. All payments have been on time for 23 of 36 months so far.
- c32cb12b-d892-4522-81f2-a2890096511d from HR to C, Estonian A 1000 that I have no convenient history for because I sold four days after getting it back in 2013. probably business loan.
- e9d34a00-5acd-48f8-ad43-a26700deca6e from F to B, Estonian A 100 that I have no convenient history for because I sold 13 days after getting it back in 2013. Probably business loan.
- e99911a7-7faa-4919-ba5e-a21200b98f8c from F to B (loan ID 34449 not 30370 to same borrower), Estonian A 700 that I sold a few weeks after getting it.
- eb7fc936-7ca9-41be-9104-a1b200df2356 from HR to C (loan ID 25469 not 424188), Estonian A 700 that I sold a few weeks after getting it.
Worse cases were these 3 point ones:
- 6ad10215-9e83-4546-8751-a270009b9c3b from C to F, Estonian A 1000 from 11/2013 which defaulted in 10/2014 and was taken to court, currently in recovery stage 4 after court decision. Current secondary market offers for this loan are -50% and 0%. A part payment on 21/4/2015 and this comment that I don't understand well enough even with Google: "<ful name of borrower removed> (isikukood <personal ID number of bofrrower removed>) kuuluvale mõttelisele osale käsutamise keelamiseks kohtutäitur <name of bailiff removed> (isikukood <personal ID of bailiff removed>), IsePankur AS (registrikood 11483929) kasuks. 18.12.2014 kohtutäituri avalduse alusel sisse kantud 8.01.2015. Kohtunikuabi <judge name removed>"
- 935eed18-8421-4bdf-806b-a3aa0146123b BO9575A7 from D to HR, Estonian C 1000 at 29% from 9/2014 for 48 months that was fully repaid on 16/1/2015 with three on time payments before that. At least according to the lender records. When I look at the application I find that it was to a 23 year old "housewife" who's job is "retiree" and who has "Basic education". Bondora introduced lending to under 25s who were "young professionals". This loan illustrates well who they really lent to after reducing the age restriction to allow lending to under-25s. I've seen no loans at all that were clearly to young professionals based on education and job, though one or two were maybe. A new loan number 202255 was approved for 50% more money for the borrower at 26.67% a day before the repayment so it looks as though that was used to clear the original one.
- 298179e4-ef28-40a4-bc70-a3f20129bf70 BO3A7K64 from C to F, Estonian A 1000 60 months at 15% interest, some payments a little late until I sold after about 9 months to increase my average interest rate and anticipated return to target for this platform.
