mikes1531
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Post by mikes1531 on Dec 22, 2014 15:38:54 GMT
chris, in what circumstances would AC want to allow a borrower to make an early interest payment while an older interest payment is still outstanding? Or put another way... Why not program the system to apply any payments received against the oldest bill that hasn't been paid yet? In that case, all Admin would have to do is tell the system that £XXX had been received and needed to be credited against Loan Y. Then all you'd have to worry about is a payment for Loan Y being credited against Loan Z! 
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Post by Jack Barlow on Dec 22, 2014 15:44:27 GMT
You'd need to distinguish between capital and interest, which is why I referred specifically to interest in my previous post.
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baz657
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Post by baz657 on Dec 22, 2014 16:36:27 GMT
Words fail me with this comment...
I'd be asking why did it even happen once? Does December 2014 look too similar to January 2015?
Oh, and the word fix doesn't start with a noun...
#bickering in public
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Post by chris on Dec 22, 2014 16:46:42 GMT
chris, in what circumstances would AC want to allow a borrower to make an early interest payment while an older interest payment is still outstanding? Or put another way... Why not program the system to apply any payments received against the oldest bill that hasn't been paid yet? In that case, all Admin would have to do is tell the system that £XXX had been received and needed to be credited against Loan Y. Then all you'd have to worry about is a payment for Loan Y being credited against Loan Z! Because in a recovery situation or if there's a partial payment or if there's an early settlement or if there's a payment dispute or if it's an on platform refinance or in countless other scenarios then the way the funds are allocated becomes important. For the time being at least the powers that be have asked me to prioritise flexibility over prescriptive procedure, which is what I've delivered.
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mikes1531
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Post by mikes1531 on Dec 22, 2014 17:30:34 GMT
Oh, and the word fix doesn't start with a noun... Or even a vowel! 
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mikes1531
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Post by mikes1531 on Dec 22, 2014 17:40:31 GMT
Or put another way... Why not program the system to apply any payments received against the oldest bill that hasn't been paid yet? In that case, all Admin would have to do is tell the system that £XXX had been received and needed to be credited against Loan Y. Because in a recovery situation or if there's a partial payment or if there's an early settlement or if there's a payment dispute or if it's an on platform refinance or in countless other scenarios then the way the funds are allocated becomes important. For the time being at least the powers that be have asked me to prioritise flexibility over prescriptive procedure, which is what I've delivered. OK. Obviously lots of things I didn't think of. And when the powers that be requested the flexibility I guess they didn't think of the possibility of an admin person making a mistake like the one that was made -- and now repeated on another loan. I'm all for adding an 'Are you sure?' step in the process, but do wonder if that's enough considering how many times people must click through them thinking they are sure when in fact they shouldn't be. Considering the far-reaching consequences of making an error like this, I can't help wondering whether the 'Are you sure?' screen ought to require confirmation by another person.
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sl75
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Post by sl75 on Dec 22, 2014 19:41:08 GMT
It seems to me that if the principle of "flexibility over prescriptive procedure" is to be followed that this should be consistently followed.
In particular, when an admin makes such an error, they should have the flexibility to press a button to reverse the erroneous transaction, rather than a prescriptive procedure insisting that they cannot reverse certain transactions.
Obviously this would result in some accounts having a negative balance (at least temporarily). The system could deal with this in at least two possible ways:
1. interpret any negative balance "behind the scenes" as a temporary loan from Assetz Capital itself (with AC holding adequate funds in the client account to allow this).
2. Add explicit statement entries for such a temporary loan so that the account balance never ACTUALLY goes negative.
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baz657
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Post by baz657 on Dec 23, 2014 1:14:56 GMT
Oh, and the word fix doesn't start with a noun... Or even a vowel! I know what I meant  Blame man-Flu.
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Post by oldnick on Dec 23, 2014 7:09:17 GMT
The software should prevent this from happening. I asumed a fix would have been made after the problem with 64. It's a perfectly valid operation though. The software prevents it from happening for periods that haven't started yet (i.e. the admin team couldn't make a payment against the period 1st Feb to 1st Mar), but early settlement of the current period is perfectly valid as far as the software is concerned. That said those screens are being reworked with larger warnings, "are you really sure?" messages, etc. Takes time to implement though and this isn't the best time of the year to turn around quick changes. is it the case then that some of the admin team do not know which month we are currently in, which causes them to key in the wrong one?That could have been quickly and easily solved by someone in management writing the correct month on adhesive notes and attaching them to each screen after the first event. Now that it's happened to loan 136 as well are we to assume that one of the notes fell off? Might I suggest beefing up the system with stickytape as a belt and braces measure until your fix is in place? Just trying to help.
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star dust
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Post by star dust on Feb 6, 2015 17:54:37 GMT
I have received an email about this loan today, along the lines of the expected refinance with AC. However, there is nothing at all about this on the website yet; the loan is supposed to have been suspended from trading, but you wouldn't think so by looking at it  . |
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oldgrumpy
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Post by oldgrumpy on Feb 6, 2015 18:07:04 GMT
The loan page hasn't been updated with the information given in the email, but trading has been stopped. This borrower must have improved his risk profile quite a lot in AC's eyes to merit a drop in lender rate from 13.2% to 10%.
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Vero
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Post by Vero on Feb 6, 2015 18:11:16 GMT
Refinanced bridging loan:
- loan amount increased by 470% (up from £290k to £1,365k) - LTV unchanged at 65%
- new loan length shorter by 25%-50% (was a 12 month bridge, now a min 6, max 9 month bridge)
- new interest rate to lenders 25% lower (down from 13.2% to 10%)
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mikes1531
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Post by mikes1531 on Feb 6, 2015 19:23:26 GMT
This borrower must have improved his risk profile quite a lot in AC's eyes to merit a drop in lender rate from 13.2% to 10%. What we don't know -- and I don't expect AC to be willing to tell us -- is whether the total interest rate payable (i.e. including AC's share) has dropped by at least 3.2%, or whether AC are taking advantage of their larger lender base and seemingly reduced deal flow at the moment to increase their margin. Since it requires more than £1M of increased funding, I'm not expecting the new loan to be completely taken up instantly it becomes available to everyone. So I see no hurry to roll over my investment. If there is a significant amount of underwriter parts on the Aftermarket, I'll wait until much of that is absorbed before deciding whether to invest in the new loan.
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oldgrumpy
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Post by oldgrumpy on Feb 6, 2015 19:31:25 GMT
Just one question will extract the information AC are prepared to reveal to us. What are the principal factors that have resulted in the "pricing to risk" change of lender interest rate from 13.2% to 10%?
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mikes1531
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Post by mikes1531 on Feb 6, 2015 20:59:31 GMT
Just one question will extract the information AC are prepared to reveal to us. What are the principal factors that have resulted in the "pricing to risk" change of lender interest rate from 13.2% to 10%? Good question. Please ask it as soon as the new loan appears on as an Upcoming Loan.
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Blame man-Flu.
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