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Post by duncandive on Jan 31, 2015 22:52:21 GMT
£1,270.00 in interest every day until the loans 'Drawdown'. That's by my basic calculation any way... Of course I could be wrong. I'm sure SS must be doing all they can to speed this along. Lets hope the new month brings good news for us all  |
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Post by duncandive on Feb 1, 2015 9:55:05 GMT
Would the Provision Fund be called upon to cover the £1,270.00 in interest being earned every day on loans waiting to 'Drawdown', if they end up being withdrawn ?
Just a thought.
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Post by Duane Dibley on Feb 1, 2015 15:59:56 GMT
Lets hope the new month brings good news for us all I don't see the problem personally, the longer the better for me, less chance of default. And if it doesn't drawdown at all, well that's just money for nothing.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Feb 1, 2015 17:04:49 GMT
Yes but where is this money coming from? No drawdown = no loan, so do Savingstream have to pay this themselves which would be difficult if it kept occurring?
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Post by duncandive on Feb 1, 2015 17:27:40 GMT
Yes but where is this money coming from? No drawdown = no loan, so do Savingstream have to pay this themselves which would be difficult if it kept occurring? That is my thought exactly. And with the loans getting larger all the time compared to previous Boat Loans. The numbers are getting significant. I can almost imagine a time when they might need to reduce the interest % levels pre-drawdown. After all the last thing any of us would want is for the platform to go bust. Maybe an alternative would be to offer an increassed 'cash back' deal rather than actual interest. I wonder how investors would react to that... 'Cat and Pigeons' any one...
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geoff
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Post by geoff on Feb 1, 2015 17:48:43 GMT
Yes but where is this money coming from? No drawdown = no loan, so do Savingstream have to pay this themselves which would be difficult if it kept occurring? This is my concern also. According to my calculations, SS currently have an interest and cashback liability of close to £72,000 due to investors on loans yet to drawdown. Is it feasible that borrowers contract to bear this cost, perhaps as a consequence of a loan offer remaining open beyond a certain timescale? Unless this is somehow factored into borrowers costs, it is coming out of SS profits. That's got to hurt!
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Feb 1, 2015 18:38:00 GMT
I see that Lendy don't mention any need for underwriting on the most recent loans. That includes the 2 largest loans awaiting drawdown, that must be a considerable saving, and loan PBL022 doesn't have cashback.
The number of new lenders is accelerating fast so less need for underwriting. Three months ago it was about 3 lenders a day joined, in the middle of January it was about 5 a day, last week it was about 10 a day, and 45 have joined since Thursday. Tomorrow should see the 2000th lender.
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david42
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Post by david42 on Feb 1, 2015 18:41:49 GMT
It does not seem clear who has the liability for interest costs when drawdown is delayed. For the four month delay to drawdown on PBL 11/12/13, Saving Stream retrospectively negotiated for the borrower to increase the fee to cover the cost of the extra interest: p2pindependentforum.com/post/35265 |
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,426
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Post by sqh on Feb 1, 2015 21:03:27 GMT
It does not seem clear who has the liability for interest costs when drawdown is delayed. For the four month delay to drawdown on PBL 11/12/13, Saving Stream retrospectively negotiated for the borrower to increase the fee to cover the cost of the extra interest: p2pindependentforum.com/post/35265 PBL 11/12/13 were an unusual and unfortunate situation. The borrower agreed to cover the delayed costs. Excerpt from email sent to lenders on 1st Nov 2014. " New Loans: PBL011/12/13 - Currently working through the delay caused by the death of one of the borrowers. Expect the Grant of Probate imminently. Borrower has given an undertaking to cover Lendy Ltd’s cost of fund losses. " EDIT : also see p2pindependentforum.com/post/26734
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mikes1531
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Post by mikes1531 on Feb 1, 2015 22:35:40 GMT
I see that Lendy don't mention any need for underwriting on the most recent loans. That includes the 2 largest loans awaiting drawdown, that must be a considerable saving, and loan PBL022 doesn't have cashback. The fact that they don't mention underwriting isn't proof -- to me, anyway -- that they haven't paid to have underwriters committed to providing funds if necessary. At the time the loan became available on the platform, drawdown was expected in January. I don't remember exactly when it became fully funded, so they might have felt the need to arrange underwriters 'just in case'. Also, ISTM that there were times when the amount remaining to be funded increased. That's usually the result of underwriters being relieved of some of their responsibilities, but it also could be the result of some investors changing their minds -- and with no cashback on this loan there's no disincentive to doing that. The number of new lenders is accelerating fast so less need for underwriting. Three months ago it was about 3 lenders a day joined, in the middle of January it was about 5 a day, last week it was about 10 a day, and 45 have joined since Thursday. Tomorrow should see the 2000th lender. There's still a chance the 2000th lender might sign up today. The count was 1995 when I checked it a few minutes ago.
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mikes1531
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Post by mikes1531 on Feb 1, 2015 22:47:01 GMT
Would the Provision Fund be called upon to cover the £1,270.00 in interest being earned every day on loans waiting to 'Drawdown', if they end up being withdrawn ? Just a thought. If SS actually have set aside a pot of money in a 'client' account as the PF, then it could be a source of the funds needed to pay interest/cashback on a loan that is abandoned before drawdown. And it might not have to be replenished since SS have said they'll keep the PF at 2% of outstanding loans -- which, at the moment, seems to include loans that haven't drawn down yet -- so if the interest/cashback on the failed loan were to come to less than 2% of the loan amount there'd be no need to top up the PF. If, on the other hand, the PF is just an entry on the SS/Lendy books, then that's a different story.
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