Apparently LendingClub has too many listings for their available lender dollars. This is not surprising, with any emerging market there will be imbalances. They are taking positive steps to address the problem in both the short term and long term. The source of this imbalance seems to be an influx of borrowers that have joined the site after LendingClub went national.
In the short term, as I reported last week they are offering a 5% bonus for lending at least $5K before 2/3/2008.
Today, they announced a longer term solution for managing the problem of marketplace inequity: adjusting the base rate 50 basis points. I like to see that they are open to changing their fixed rates to match market conditions. This is a much more permanent solution managing imbalances. It is similar to the fed can setting the fed funds rate to control the money supply.
This tool can also be used when the long term lender ROI is a more stable quantity; thereby, ensuring an attractive risk free rate. Fred93 (one of the top 10 lenders by volume on Prosper) dissects the Lending Club lender ROI calculation.
Anyone wishing to try LendingClub should be sure to get a $25 signup bonus by using this link to signup: Signup via this link and receive a $25 startup bonus
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