oldgrumpy
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Post by oldgrumpy on Feb 15, 2016 14:39:24 GMT
The "lower risk" fairly small loan to a regular borrower currently available for funding is showing the absence effect of the usual underwriting "bids", which have previously ensured that the "reserve rate" has always been achieved. I wonder what FK will do now if this loan does not fill with our bids, because the auctions used to really be almost fixed rate deals, but now ... who knows?
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daveb4
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Post by daveb4 on Feb 15, 2016 15:20:54 GMT
good spot - I should not have bid so low! - usually just go for reserve rate - might put in some more higher ones and see what happens!
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Post by kayfundingknight on Feb 15, 2016 16:38:19 GMT
Thank you for all your supportive comments.
The FK lending model is designed so that each loan proposition that is approved by the credit committee can go to auction in the certainty that : * It will be fully funded and
* The net rate to the borrower will be no worse than the reserve rate agreed before the auction starts
The break from GLIF has not changed this model. We will continue to ensure all our loans have been fully underwritten before being offered at auction.
If you have any queries, concerns or would like more information, please contact me, Kay@fundingknight.com
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oldgrumpy
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Post by oldgrumpy on Feb 15, 2016 16:42:15 GMT
kayfundingknightThanks for the input, Kay Do please keep us informed re progress replacing GLI's position
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wysiati
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Post by wysiati on Feb 16, 2016 11:44:26 GMT
kayfundingknight Thanks for the input, Kay Do please keep us informed re progress replacing GLI's position From GLIF's public RNS released this morning.... "FundingKnight It has not been possible to agree a way forward where the Company could feel confident in deploying further resources to FundingKnight. An amicable process for separation has been agreed where GLI will remain a passive investor whilst reducing overall financial exposure and seeking a long term exit."
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daveb4
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Post by daveb4 on Feb 16, 2016 11:52:43 GMT
kayfundingknight Thanks for the input, Kay Do please keep us informed re progress replacing GLI's position From GLIF's public RNS released this morning.... "FundingKnight It has not been possible to agree a way forward where the Company could feel confident in deploying further resources to FundingKnight. An amicable process for separation has been agreed where GLI will remain a passive investor whilst reducing overall financial exposure and seeking a long term exit." From what i can see from the announcement this morning it relates to the new structure of GLIF whereby they are reducing their actual contribution to loans, as this element was too time consuming and not what they wish to proceed with. Good to see however the new loan is nearly funded with still a few days to go.
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