p2pfan
Member of DD Central
Full-Time Investor
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Post by p2pfan on Sept 9, 2019 20:33:55 GMT
Eye-opening article entitled "Funding Circle amateur lenders facing longer waits to cash out" on Yahoo! Finance here. Thoughts? |
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bigfoot12
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Post by bigfoot12 on Sept 10, 2019 7:54:08 GMT
Not that eye opening, try reading the very next thread (Selling Loans - Time frame.) |
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corto
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one-syllabistic
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Post by corto on Sept 12, 2019 15:31:57 GMT
The article is slightly more than not eye-opening for me ..
" .. ensures that old loans are evenly balanced with new ones.
"
would mean to me it's not only those badly DD'ed loans from a couple of years ago, that some of us have creeps about, that are slow to sell, but all loans .. still I'd find little clue what "balanced" means here.
"Investors are also facing the possibility of being unable to re-sell their loan parts at all, due to Funding Circle conditions which state that any loans which do not sell on the secondary market after 120 days will be removed from resale."
As per previous point, this then would also apply to recent loans, which would imply that NO loans at all can be sold by anybody, because the queue hits 120 days imminently
Top two options
- somebody wrote an article without much understanding
- this disaster is really going to happen (e.g. ALL sale attempts soon disqualify)
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Stonk
Stonking
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Post by Stonk on Sept 12, 2019 19:00:56 GMT
The article is slightly more than not eye-opening for me .. " .. ensures that old loans are evenly balanced with new ones. " would mean to me it's not only those badly DD'ed loans from a couple of years ago, that some of us have creeps about, that are slow to sell, but all loans .. still I'd find little clue what "balanced" means here. "Investors are also facing the possibility of being unable to re-sell their loan parts at all, due to Funding Circle conditions which state that any loans which do not sell on the secondary market after 120 days will be removed from resale." As per previous point, this then would also apply to recent loans, which would imply that NO loans at all can be sold by anybody, because the queue hits 120 days imminently Top two options - somebody wrote an article without much understanding - this disaster is really going to happen (e.g. ALL sale attempts soon disqualify)
All loan selling is slow. Selling is being artificially slowed down by FC to a rate of their choosing. This is being done to ensure a dodgy cohort of loans is offloaded evenly and balanced with new loans. But it necessarily affects ALL loans, including those not in the cr@p pile, because otherwise there would be queue-jumping (e.g., someone with a portfolio of "good" loans from 2019 would jump ahead of someone like me with a portfolio containing a lot from 2017/2018). It's a consequence of the way selling works: you join the queue, nothing sells until you get to the front, then all of your loans are sold, and only then the next person gets a go.
The 120-day rule will not be implemented. The article was written without much understanding, possibly by quickly scanning the big current thread on this forum.
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Post by rweb on Sept 20, 2019 8:19:23 GMT
The 120-day rule will not be implemented. The article was written without much understanding, possibly by quickly scanning the big current thread on this forum.
I'd agree with that. The 120-day rule is essentially obsolete. Loan parts are no longer "listed for sale" and so will never reach 120 days. Instead, a change was made by FC earlier this year which meant investors wishing to sell indicate a total value of loans they wish to sell. Rather than marking loans as "for sale" at that point, loans sold are selected when they get to the front of the sell queue. They remain "live" (hopefully!) until that time.
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