http://blogs.reuters.com/felix-salmon/2011/02/07/lending-clubs-loss-rate-numbers/ A slice of lime in the soda Wed, 19 Jun 2013 10:36:09 +0000 hourly 1 http://wordpress.org/?v=3.4.2 http://blogs.reuters.com/felix-salmon/2011/02/07/lending-clubs-loss-rate-numbers/comment-page-1/#comment-23852 Strych09 Tue, 08 Feb 2011 23:27:31 +0000 http://blogs.reuters.com/felix-salmon/?p=7217#comment-23852 it's a tangent, but I've heard anecdotes substantiating this phenomenon in some neighborhoods in California, where the residential mortgages without verified income (the infamous NINJA loans) are performing better than ones where income/employment was verified. And in a lot more cases than you'd imagine, the reason the borrower couldn't substantiate income was because they were a black market marijuana dealer or grower or wholesaler or distributor, so they had the cash flow to make mortgage payments but not a legitimate job that they could declare to the lendor and hence the government. it’s a tangent, but I’ve heard anecdotes substantiating this phenomenon in some neighborhoods in California, where the residential mortgages without verified income (the infamous NINJA loans) are performing better than ones where income/employment was verified. And in a lot more cases than you’d imagine, the reason the borrower couldn’t substantiate income was because they were a black market marijuana dealer or grower or wholesaler or distributor, so they had the cash flow to make mortgage payments but not a legitimate job that they could declare to the lendor and hence the government.

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