The reason given by LC is that the average interest rate at time of intended auction close, is too high to be acceptable to the borrower.
So maybe better to extend than have no loan at all I suppose.
In my opinion if they did not rush some loans to auction so quick, eg 09.30 close only notified the evening before,and/or spread them out more evenly, eg not three in one day and none the next. then these extensions would not have to happen.
We understand that extending the loan auction times is not ideal and we try to limit occurrences of this.
In some cases we feel that extending the loan auction, thereby giving more time for investors to bid and lower the overall loan interest rate, will be likely to result in the borrower accepting the loan offer and the loan going ahead. We are competing in a crowded borrower marketplace and we want to continue to provide diversification opportunities for investors.
In future, we are planning to keep loan auctions live at least overnight and we hope this will reduce the need to extend loan auctions. We will also aim to give investors as much notice as possible if a loan auction is going to be extended.
We do have an email list set up for investors who would like to be alerted to new loans and closing loans. If you would like to be added to this list, please send us a PM through the forum or email [email protected] with your name and email address and we'll sort that out for you.