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To: Glenn Petersen who wrote (16)	12/10/2014 11:04:36 AM
From: Kirk ©	Read Replies (1) \| Respond to of 247

Thanks for the detailed reply. It really helps understand how this works. So I can get a loan for $50K, of which I'll pay LC 6% or $3K then perhaps pay 10% a year to the lenders for the full $50K. If I pay it off in two years, the lenders get roughly $10K and LC gets $3K plus some servicing fees, maybe another 1.3% or another $650 per year. Thus, they get 3/13 x100% or 23% of the total charges. Lets compare LC rates to the service fees (annual expense) for a Vanguard Junk Bond Index Fund Note investors pay us a servicing fee equal to 1% of each payment amount received from the borrower; whole loan purchasers pay a monthly servicing fee up to 1.3% per annum on the month-end principal balance of loans serviced; and certificate holders generally pay a monthly management fee typically ranging from 0.7% to 1.2% per annum of the month-end balance of assets under management. Much cheaper to let Vanguard do it for me... but it "only" pays 4.79% As I write in my monthly newsletter for why I own and trade XLF: “A terrible thing happened. I realized I’d joined the wrong mob.” Mobster Lucky Luciano said that after he visited the floor of the NYSE where someone explained to him the role of the floor specialist. We can avoid repeating Luciano’s mistake by owning XLF! I'll probably not invest in a LC loan, but I sure wish I was in on the original investment that funded this. I might even be interested in the IPO as they will probably do really well until traditional banks compete with them again or we have another recession. Do you know who those rates vs credit spreads compare to business loans at local banks? Thanks