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Post by Ace on Jan 5, 2019 0:06:28 GMT
I noticed a strange occurrence on Welendus today. I picked up a loan that was then repurchased by the PF on the same day. Ok, I haven't really lost out here other than some very minor cash drag, but it does seem rather strange. My settings are for the PF to repurchase loans when a payment is late by 35 days. A closer look at what happened showed: It was a loan extension with a new contract date of 01-Dec-2018. I was allocated the loan on 04-Jan-2019 (35 days after the loan extension started). The loan was repurchased by the PF that same day. One can only deduce that Welendus was expecting a payment on the day the loan commenced (which seems very strange) and that the borrower had still not made that payment 35 days later, hence the PF stepped in. Is there anything going wrong here? nsiam ? |
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Post by nsiam on Jan 5, 2019 8:54:39 GMT
I noticed a strange occurrence on Welendus today. I picked up a loan that was then repurchased by the PF on the same day. Ok, I haven't really lost out here other than some very minor cash drag, but it does seem rather strange. My settings are for the PF to repurchase loans when a payment is late by 35 days. A closer look at what happened showed: It was a loan extension with a new contract date of 01-Dec-2018. I was allocated the loan on 04-Jan-2019 (35 days after the loan extension started). The loan was repurchased by the PF that same day. One can only deduce that Welendus was expecting a payment on the day the loan commenced (which seems very strange) and that the borrower had still not made that payment 35 days later, hence the PF stepped in. Is there anything going wrong here? nsiam ? , It seem like it was a secondary market loan that was bought by your account just before the Provision Fund kicked in. If you send me the loan reference number, we can check and confirm the above. Thanks, Nadeem
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Post by Ace on Jan 5, 2019 9:01:29 GMT
Thanks Nadeem, have PM'd details.
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Ukmikk
Member of DD Central
Posts: 445 
Likes: 298
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Post by Ukmikk on Jan 5, 2019 16:28:53 GMT
Hi Ace, if you open the loan agreement and scroll to the bottom you will probably see that you bought out someone else's part of the loan (ie. They made a withdrawal) just before the PF kicked in and purchased the loan. I've seen this behaviour in my own loans. I guess this could be prevented if late loans were excluded from the SM which could slow down withdrawals, and you could argue that the PF protection covers this event anyway, albeit reducing your interest return on your capital. Given the choice you probably wouldn't choose to buy into a loan that was already late and close to PF intervention. Probably something else that the platform needs to improve on. |
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Post by Ace on Jan 5, 2019 18:09:11 GMT
You're pretty much spot on Ukmikk. I had a reply from Nadeem. The borrower expressed that they were in financial difficulty and requested to enter into a payment plan shortly after I was allocated the loan from the SM. Apparently the PF takes over loans under these circumstances, regardless of whether any payments are late. This all seems sensible to me, so I'm satisfied that there isn't a problem. It's not clear to me whether Welendus do allow loans with overdue payments to be bought/sold on the SM, but I'm not bothered if it does while the PF is still recompensing lenders for capital and lost interest. |
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Post by df on Jan 5, 2019 20:54:37 GMT
You're pretty much spot on Ukmikk . I had a reply from Nadeem. The borrower expressed that they were in financial difficulty and requested to enter into a payment plan shortly after I was allocated the loan from the SM. Apparently the PF takes over loans under these circumstances, regardless of whether any payments are late. This all seems sensible to me, so I'm satisfied that there isn't a problem. It's not clear to me whether Welendus do allow loans with overdue payments to be bought/sold on the SM, but I'm not bothered if it does while the PF is still recompensing lenders for capital and lost interest. Exactly! The same as with RS/LW/GS/UB etc. - don't need to worry about technicalities as PF takes care of your personal losses. So far, out of all accounts with PF I'm involved Welendus has delivered best returns.
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Ukmikk
Member of DD Central
Posts: 445
Likes: 298
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Post by Ukmikk on Jan 7, 2019 10:54:48 GMT
It's not clear to me whether Welendus do allow loans with overdue payments to be bought/sold on the SM, but I'm not bothered if it does while the PF is still recompensing lenders for capital and lost interest. Good point Ace, I forgot about the interest being covered currently. If that ever changed then I think that being sold a non-performing loan would become much less palatable.
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