mary
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Post by mary on Nov 1, 2017 12:13:44 GMT
As far as I know these are the loans that are hiding in the Live Loans tab, but are "Suspended" and not tradable on the SM and all have an LPA receiver appointed...
DFL01 - £6m
DFL02 - £3m
DFL17 - £7.5m
PLB84 - £5m
PBL103 - £2m
PBL155 - £3.4m
PBL167 - £2.6m
PLB166 - £0.9m
Over £30m "suspended", in addition to the official defaults of £23m.
So, £53m of £180m is really in default. Not good!
Please add any I missed.
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Post by charliebrown on Nov 1, 2017 12:46:34 GMT
As far as I know these are the loans that are hiding in the Live Loans tab, but are "Suspended" and not tradable on the SM and all have an LPA receiver appointed... DFL01 - £6m DFL02 - £3m DFL17 - £7.5m PLB84 - £5m PBL103 - £2m PBL155 - £3.4m PBL167 - £2.6m PLB166 - £0.9m Over £30m "suspended", in addition to the official defaults of £23m. So, £53m of £180m is really in default. Not good! Please add any I missed. Thanks for compiling that list. It’s useful to see this in one place. Lendy, please urgently give us a “suspended” tab. Almost 30% defaults. If you add in the loans that have exceeded their due date, negative day loans, the reading is even worse. I feel the brown stuff is really about to hit the fan. The fact that defaults drag on for months or years delays the inevitable capital losses that will need to be dished out. Why are other platforms advertising 2% default rates, even on unsecured loans, yet Lendy, depending on how you measure it, is at 30%++. As time passes and more dodgy loans come to repayment time the 30% figure is just increasing and increasing. As much as I wish Lendy and all investors success i’m too scared to keep investing. It’s fraught with dangers beyond my desire for a possible 12% return. I can get 6% at RateSetter for a low risk hands-off platform.
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garfield
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Post by garfield on Nov 1, 2017 12:49:00 GMT
DFL16 as well!
Edit: though no LPA receiver.
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izigor
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Post by izigor on Nov 1, 2017 14:17:43 GMT
If I understand correctly, one of the benefits when a loan is suspended before going to default is that they can provide 'default resolution' methodology early. This would bring earlier resolution to those loans now at higher risks to being defaulted.
So, while I agree there is cause for concern at the amount involved, I don't think it's a fair view to lump suspended loans and default loans in one. I believe (lightly) that this new mechanism will significantly reduce the default pot against what it would have been in the future (i.e. about 2 to 3 years later).
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mary
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Post by mary on Nov 1, 2017 14:28:01 GMT
If I understand correctly, one of the benefits when a loan is suspended before going to default is that they can provide 'default resolution' methodology early. This would bring earlier resolution to those loans now at higher risks to being defaulted. So, while I agree there is cause for concern at the amount involved, I don't think it's a fair view to lump suspended loans and default loans in one. I believe (lightly) that this new mechanism will significantly reduce the default pot against what it would have been in the future (i.e. about 2 to 3 years later). Very possibly, although I doubt Lendy will confirm, but I do agree that early action is more likely to improve resolution timescales. I just wish these loans were not hidden in Live, and unless you search out the details you remain ignorant of the true picture, of both the loan and the platform. This gives the appearance that Lendy would rather not advertise the reality.
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elliotn
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Post by elliotn on Nov 1, 2017 15:04:34 GMT
If I understand correctly, one of the benefits when a loan is suspended before going to default is that they can provide 'default resolution' methodology early. This would bring earlier resolution to those loans now at higher risks to being defaulted. So, while I agree there is cause for concern at the amount involved, I don't think it's a fair view to lump suspended loans and default loans in one. I believe (lightly) that this new mechanism will significantly reduce the default pot against what it would have been in the future (i.e. about 2 to 3 years later). Alongside Ly’s regulatory disclaimer, I would draw comparison to MT’s robust loan delinquency management. Stepping in earlier can hopefully lead to a more pro-active, platform led resolution. According to the updates these are now being baked into many loan agreements with agreed credit events intra-term. These would seem to be the lessons of experience where in the forbearance of the SS loan book has led to Ly tightening their current loan writing. Good. Given that we now have this category of loan Lendy Support @paul64 must get IT to add the necessary Suspended tab AND - just as importantly - advise lenders at launch of any such intra-term credit events that we are currently funding blindly ASAP. Surely a hiccup re FCA authorisation.
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chunkie
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Post by chunkie on Nov 1, 2017 16:35:18 GMT
I believe PBL161 was also suspended.
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Post by GSV3MIaC on Nov 1, 2017 17:43:46 GMT
Why are other platforms advertising 2% default rates, even on unsecured loans, yet Lendy, depending on how you measure it, is at 30%++. As time passes and more dodgy loans come to repayment time the 30% figure is just increasing and increasing. I think you are comparing apples and orang-outangs .. 30% is 'non performing loans' whereas I'd wager the 2% is 'actual losses after recovery completes' (or else this is some juvenile platform where the loans have not yet had time to fail .. but then again LC managed worse than 2% in the first year IIRC.). What size loss these 30% NP loans turn into probably won't be clear until your grandchildren are running your accounts. Where did you get the 2% from (I can see where the 30% is arrived at). p.s. However yes, 30% non-performing loans is pretty poor. They surely do know how to pick them (or possibly the sub-prime borrowers know how to pick them).
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mikes1531
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Post by mikes1531 on Nov 1, 2017 22:01:47 GMT
If I understand correctly, one of the benefits when a loan is suspended before going to default is that they can provide 'default resolution' methodology early. This would bring earlier resolution to those loans now at higher risks to being defaulted. So, while I agree there is cause for concern at the amount involved, I don't think it's a fair view to lump suspended loans and default loans in one. I believe (lightly) that this new mechanism will significantly reduce the default pot against what it would have been in the future (i.e. about 2 to 3 years later). While I agree that prompt action for non-performing loans is likely to produce a better result than waiting until a loan is more than six months overdue before taking action, the real issue here is caused by Lendy's very narrow definition of defaulted loans, which is limited to loans that are more than six months overdue. AIUI, by the finance industry's standard definitions, a loan is in default when the borrower fails to comply with the terms of the loan. Based on that, ISTM that all of Lendy's Suspended loans would be considered to be in default by just about anybody other than Lendy. I expect that Lendy's loan agreements are written using the standard/usual terms, and that would mean that according to those agreements the Suspended loans are in default as defined by those agreements, but I obviously cannot determine whether or not this is the case because Lendy do not allow their investors to see the agreements. (I find the keeping of the Loan Contracts secret to be particularly odd inasmuch as the Ts&Cs posted on the website make it clear that the Loan Contracts are between the borrowers and us as investors, that we have to agree to the Ts&Cs of the Loan Contract, and that our membership of Lendy can be cancelled if we don't adhere to those Ts&Cs. How can we agree to, and comply with, any Ts&Cs if we aren't allowed to see them? Surely that would fall within the standard definition of unfair contract terms.)
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webwizard
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Post by webwizard on Nov 2, 2017 8:16:33 GMT
I presume the suspended loans are still paying interest on account if +days to run, whereas the default ones are accruing and may never pay.
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bg
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Post by bg on Nov 2, 2017 9:39:39 GMT
If I understand correctly, one of the benefits when a loan is suspended before going to default is that they can provide 'default resolution' methodology early. This would bring earlier resolution to those loans now at higher risks to being defaulted. So, while I agree there is cause for concern at the amount involved, I don't think it's a fair view to lump suspended loans and default loans in one. I believe (lightly) that this new mechanism will significantly reduce the default pot against what it would have been in the future (i.e. about 2 to 3 years later). While I agree that prompt action for non-performing loans is likely to produce a better result than waiting until a loan is more than six months overdue before taking action, the real issue here is caused by Lendy's very narrow definition of defaulted loans, which is limited to loans that are more than six months overdue. I think the real issue is the lack of transparency by Lendy. Why is there no suspended loans tab?...do the suspended loans even appear on the live loans tab? How can any (new) investor considering whether to invest even know that there are so many other loans with potentially big issues? Personally I don't care if a loan is classed as suspended or defaulted but they should all be well flagged, easy to view and with clear definitions of why they are classified as such. You can add this to the list of reasons why my significant 6 figure holding earlier this year in this platform is now down to sub 30k (and still reducing).
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garfield
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Post by garfield on Nov 2, 2017 10:27:40 GMT
It looks like all loans are on the live loans tab, unless they're defaulted (or repaid, whether partially or fully).
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SteveT
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Post by SteveT on Nov 2, 2017 11:17:45 GMT
Keeping suspended loans within "Live Loans" is not an issue in itself; such a loan is still live (ie. paying interest and not defaulted), it's just not trade-able via the SM.
All that is needed is some way of flagging "SM trading suspended" loans on that page (eg. coloured shading or a "flash"), just as Assetz Capital do on theirs.
A good option would be to add the (oft-requested) "Available" column into the "Live Loans" page but replacing "£0.00" with "Trading suspended" for the SM-suspended loans.
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izigor
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Post by izigor on Nov 2, 2017 16:22:47 GMT
I think for the purpose of making suspended loans visible, the best solution is to have a separate tab for them. In this way, the total amount for 'suspended loans' can also be displayed just like for 'default loans'. This, ideally, should reflect the IT database model anyway and if they have coded it right, it should be 5 to 10 days work to add the web front-end (a copy and paste of the default tab - 1 hour), code and wire-in the back end service to the front end with the data (1/2 day) and test it to death and repair (5 days).
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n
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Yet another Nick
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Post by n on Nov 2, 2017 16:27:39 GMT
I think for the purpose of making suspended loans visible, the best solution is to have a separate tab for them. In this way, the total amount for 'suspended loans' can also be displayed just like for 'default loans'. This, ideally, should reflect the IT database model anyway and if they have coded it right, it should be 5 to 10 days work to add the web front-end (a copy and paste of the default tab - 1 hour), code and wire-in the back end service to the front end with the data (1/2 day) and test it to death and repair (5 days). So 1/2 day then. 
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