Refining and Enhancing the Joint Application Loan Program

At Lending Club, we are committed to improving the experiences for both borrowers and investors. We’re excited to announce that after a year of successful testing, effective March 9, 2017, the joint application loan program is being refined to implement a more integrated evaluation of both borrower applicants’ credit profiles.  As part of this change, additional credit criteria are being added for the secondary applicant.  We are also making more joint application loan data available for investors.

Since the launch of the joint application loan program over a year ago, we’ve seen a lot of great benefits for both borrowers and investors.  Borrowers who apply together are able to utilize a higher income, and investors can benefit given that two borrowers are jointly responsible to pay off the loan. What’s more, as shown in the tables below, we’ve found that joint application loans have generally performed better and demonstrated lower risk on average (based on delinquency status at 8 months on book) than individual application loans.

We’ve seen that in the past joint borrower applicants had an additional $30,000 in aggregate income, while many other characteristics were consistent with individual borrower applicants (see the table below).

Borrower Characteristics[1]

Individual Applications

Joint Applications

Average FICO (Primary Borrower/Secondary Borrower)


696 / 678

Average Stated Income[2]



Average Debt-to-Income[2]



Average Loan Size



Average Open Accounts (Primary borrower)



Average Credit Utilization (Primary borrower)



Joint application loans also have historically performed better on average than individual application loans, based on early data on delinquency. The chart below shows that eight months after issuance the percentage of outstanding principal related to joint application loans that is 16 or more days delinquent is about 30% to 40% lower than individual application loans.3

Joint Application Performance[3]

36-month term

60-month term

Individual Application Loans

Joint Application Loans Difference Individual Application Loans Joint Application Loans


Percentage of Outstanding Principal 16 or more Days Delinquent


3.2% -31% 5.3% 3.3%



Given the success of the program, we are planning to offer it more broadly to additional borrower applicants, and effective today, additional credit criteria for secondary borrower applicants are being implemented.  You can find the updated credit criteria here.

Finally, we have also added 13 new attributes for joint application loans to investor reports and the API. This will help investors better evaluate and assess joint application loans. The fields will only apply for new joint application loans as of March 9, 2017 and going forward. You can find more information on the fields here.

As always, we’ll continue to develop more ways to offer high-quality credit to borrowers and solid risk-adjusted returns for investors.


[1] All averages are simple averages, which is weighted by loan size. Based on all Prime loans facilitated from October 2016 to February 2017, which represents the time frame in which the joint application loan program was initially expanded.  Past borrower and program metrics are not a promise or a guarantee of future outcomes, results or metrics. Actual future metrics and Prime program composition with respect to individual and/or joint application loans are subject to change, and actual outcomes may differ materially from historical data.
[2] Indicates joint income or debt-to-income in the case of joint applications.
[3] Based on loans issued in March and April of 2016 from the Direct Mail channel only (where the joint application loan program beta test was conducted) and delinquency status (16+ days past due) at 8 months after issuance date. This time period reflects the earliest vintage after aspects of current pricing policy were implemented. Historical delinquency rates are not a prediction or guarantee of future delinquency or loan performance. Actual delinquency rates and loan performance may vary. Actual delinquency and loan performance experienced by any individual portfolio may be impacted by, among other things, the size and diversity of the portfolio, its exposure to particular loans or groups of loans, as well as macroeconomic conditions.

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