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Post by petebutt43 on Nov 6, 2018 6:18:37 GMT
"Lendy in talks over deal that would involve selling loanbook at discount to face value." As reported on the front page of the FT online They seem to be looking at selling the entire loanbook at a discount (presumeably large). Rottweiler journalism. Lendy are just opening the secondary market to premium/discount sales!!
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tombraider
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Post by tombraider on Nov 6, 2018 11:35:41 GMT
Where’s the discounted / premium SM sales information come from?
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Post by saver on Nov 7, 2018 9:15:34 GMT
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mjc
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Post by mjc on Nov 7, 2018 10:07:21 GMT
Quote “However, Lendy’s situation has raised questions about the need to use distressed debt investors when a P2P lender already has a property as security. Industry sources have also questioned the market for non-performing loans, warning a big discount would be required for investors. ...... Neil Faulkner, founder of P2P analysis firm 4th Way, said Lendy should not need to sell loans to distressed debt investors. “Selling distressed debts is something that might happen in some P2P consumer lending and perhaps even some unsecured small business lending, since that is very common practice in banking for equivalent loans, where bad-debt recovery chances can be very low,” he said. “It is certainly not common in the kind of lending that Lendy does, it is supposed to be doing secured lending with a maximum loan-to-value of 75 per cent.” Faulkner said recovery should be made through legal means, involving court orders to take property into possession and authorising the sale, with the proceeds going to pay off the lenders. “If Lendy’s property valuations, borrower checks and initial legal paperwork were well carried out in the first place, I wonder why the idea of selling to distressed-debt investors is even crossing their minds,” he added” So if these were “secured” why is the “Valuer” not liable in (most) such cases? The errors are egregious.
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quidco
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Post by quidco on Nov 7, 2018 10:16:02 GMT
What the FT article actually says is:
"Lendy said that it had been carrying out “fairly standard loan servicing steps”, and holds discussions “on a regular basis, with a wide variety of lenders who could provide refinancing to selected borrowers where their loans have gone over term.”"
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invester
P2P Blogger
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Post by invester on Nov 7, 2018 16:21:11 GMT
For these types of loans, are there really a 'wide variety' of lenders that might re-finance them? I think not. Not any other P2P platform anyway, not mainstream, and I doubt non-property investment trusts would consider it.
It does make sense for Lendy to try and use the existing good loans as some kind of bargaining chip to get someone to take the more unpalatable ones. For them to push the 'reset' button and start again with Wealth and no other headaches is surely the most desired outcome, although they will have to stick to the PR bollox about wanting the best return for investors.
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Post by Deleted on Nov 7, 2018 16:24:28 GMT
"surely"  no the best outcome is they return my capital and my income. Anything else is sub-par and should require them to seize assets and sue valuers. What else are they there for? |
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Post by cashmax on Nov 7, 2018 16:59:01 GMT
You also have to consider that loans where the capital no longer exists or where the valuation proves to be optimistic are going to be almost impossible to refinance.
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quidco
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Post by quidco on Nov 7, 2018 18:46:25 GMT
For these types of loans, are there really a 'wide variety' of lenders that might re-finance them? I think not. Not any other P2P platform anyway, not mainstream, and I doubt non-property investment trusts would consider it. It does make sense for Lendy to try and use the existing good loans as some kind of bargaining chip to get someone to take the more unpalatable ones. For them to push the 'reset' button and start again with Wealth and no other headaches is surely the most desired outcome, although they will have to stick to the PR bollox about wanting the best return for investors. What they say they are doing in a number of instances is working with the borrowers to refinance away from the platform. Presumbly the potential lenders would be looking at the borrower and the asset on an individual basis.
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Post by Deleted on Nov 9, 2018 17:26:19 GMT
Next they will be taking our first charge loan and converting it into a second charge loan to let someone else come in and work through the deal. If I'm losing first charge position I want my money back.
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no the best outcome is they return my capital and my income. Anything else is sub-par and should require them to seize assets and sue valuers. What else are they there for?