puddleduck
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Post by puddleduck on May 1, 2020 17:01:48 GMT
From the e-mail titled: 'A video update to Access Account investors'
This caught my eye...'we will be topping up the Access Accounts interest to 3.75% (p.a. equivalent) today in anticipation of that catch-up in May. This rate will apply to all Access Accounts this month due to all of them missing target rates and this is likely to continue at least for the near future due to some missed borrower payments not being mitigated by forbearance. This interest rate is after the new lender fee, not before.
I'm reading this as an interest rate haircut for 30DAA and 90DAA account holders.
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SteveT
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Post by SteveT on May 1, 2020 17:14:00 GMT
If those accounts no longer earn anything more than the QAA, the 30 / 90 day wait on withdrawal requests surely should be waived immediately. What is the justification for locking in such lenders if there is no rate advantage?
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Post by gobuchul on May 1, 2020 17:14:08 GMT
From the e-mail titled: 'A video update to Access Account investors' This caught my eye... 'we will be topping up the Access Accounts interest to 3.75% (p.a. equivalent) today in anticipation of that catch-up in May. This rate will apply to all Access Accounts this month due to all of them missing target rates and this is likely to continue at least for the near future due to some missed borrower payments not being mitigated by forbearance. This interest rate is after the new lender fee, not before.I'm reading this as an interest rate haircut for 30DAA and 90DAA account holders. At least it's not a fixed sum per Access Account no matter how much money is in the account. Now that would be crazy!
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chris1200
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Post by chris1200 on May 1, 2020 17:18:50 GMT
If that's correct, this would be pretty unfortunate. As a 30 day AA holder, I had to wait 30 days longer to join the pool, and yet I now receive the same interest rate as those who were able to join it immediately.
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cb25
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Post by cb25 on May 1, 2020 17:22:20 GMT
If those accounts no longer earn anything more than the QAA, the 30 / 90 day wait on withdrawal requests surely should be waived immediately. What is the justification for locking in such lenders if there is no rate advantage? Very good point, though I suspect all 30DAA money from those who wish to withdraw is already past its withdrawal dates. Mine is, but was always on a rolling 30-day cycle.
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Post by gobuchul on May 1, 2020 17:23:29 GMT
I'm not sure that AC are saying you will only get 3.75%. It says "in anticipation of that catch-up in May". I suspect they are putting in 3.75% as a holding measure and as the interest comes in the accounts will be topped up further up to the respective AA % cap maximum.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 1, 2020 17:25:30 GMT
If those accounts no longer earn anything more than the QAA, the 30 / 90 day wait on withdrawal requests surely should be waived immediately. What is the justification for locking in such lenders if there is no rate advantage? Presumably they should ultimately earn the higher rate once the forbearance gets shorted out. AC do need to provide some clarity though. The forbearance vote said that they would be increasing loan sizes in order to allow the interest to be covered over the period from a new retention fund resulting. That to me says that one that is done interest should be paid as normal. If that I snot the case then the forbearance vote was on a false premise.
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iann
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Post by iann on May 1, 2020 17:25:41 GMT
I'm not sure that AC are saying you will only get 3.75%. It says "in anticipation of that catch-up in May". I suspect they are putting in 3.75% as a holding measure and as the interest comes in the accounts will be topped up further up to the respective AA % cap maximum. It's not entirely clear, one can hope I suppose. If it is correct then those in 30DAA and 90DAA would still have a potential advantage.
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Post by nycmw on May 1, 2020 17:27:48 GMT
Based on the withdraws I've been getting from AC, it would take me almost two months to effort to buy the pink Gant shirt he is wearing in the video  |
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ceejay
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Post by ceejay on May 1, 2020 17:30:25 GMT
I'm not sure that AC are saying you will only get 3.75%. It says "in anticipation of that catch-up in May". I suspect they are putting in 3.75% as a holding measure and as the interest comes in the accounts will be topped up further up to the respective AA % cap maximum. I don't think that's what they said/meant. I read it as - for your 1st May interest payment, reflecting the period of April, we are paying at an (annualised equivalent) rate of 3.75%, even though the actual interest income wasn't that much, in anticipation that we will be able to do some catching up in May.
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Post by martinde21 on May 1, 2020 17:49:05 GMT
I read this as good news. I wasn't expecting realistically any interest this month, given that many borrowers are in forbearance....
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alender
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Post by alender on May 1, 2020 17:51:28 GMT
From what he said all AAs will be getting 3.75% for Apr in anticipation of that catch-up in May.
Then he said "this rate will continue for near future" as May is the next Interest payment date it is not making much sense.
Also what is meant by "catch-up", an increase in rates for May or more money paid for Apr interest!
Also how does lender fees fit into this.
I think abnormal market conditions will be the new normal for quite some time.
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puddleduck
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Post by puddleduck on May 1, 2020 18:12:46 GMT
Interest has now been paid, yes we've had a haircut...
Interest Payment For 90-Day Access Account For Month 2020-04 @ 3.75% Per Annum
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Post by davee39 on May 1, 2020 18:13:39 GMT
The interest would be much less than 3.75% this month, this is being topped up by reserve funds. Next month interest will remain at 3.75% but the top up from reserve funds is not expected to be required.
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Post by gobuchul on May 1, 2020 18:19:10 GMT
I still think there is more to come this month. it says "Interest Paid This Month So Far" under the interest payment.
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