jimc99
Member of DD Central
Posts: 284 
Likes: 115
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Post by jimc99 on Jun 17, 2016 22:47:24 GMT
Just out of interest are the RS fees for arranging a loan now recovered over the life of the loan instead of upfront.
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Post by westonkevRS on Jun 18, 2016 18:29:54 GMT
It's still a mix. You can't make shift like that over-night, it's a process that takes years. But Rhydian is on record recently as saying that something like 30-50% of RateSetter income comes over the lifetime (I can't recall the exact percentage, it's in one of the "in the news" links).
Beware of using any platform that still take the majority of fees up-front and doesn't have a strong balance sheet. Any regulatory shift could cause some platforms significant liquidity risk, and potential failure...
Kevin
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Post by propman on Jun 20, 2016 16:03:02 GMT
And IIRC the 'security' in the PF is the non-performing loans it has taken over, much of which can be expected to be recovered (but not for a while). I thought that the value of the repayments from the loans purchased by the PF is currently not included in the PF value shown and so is extra money available for the PF to use in the medium to long term.
IIRC the security is the value of assets that could be sold to repay the RS loans if the borrower fails to meet its repayments. If the sale yields more than the loan then the excess is due to the borrower. However, due to the time liquidating security takes, it is likely that the PF would repurchase many of any such loans that defaulted and so the recovery from the sale of the security wold be added to the PF to meet future liabilities.
- PM
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Post by westonkevRS on Jun 21, 2016 5:59:19 GMT
And IIRC the 'security' in the PF is the non-performing loans it has taken over, much of which can be expected to be recovered (but not for a while). I thought that the value of the repayments from the loans purchased by the PF is currently not included in the PF value shown....
- PM
Money that has been collected from Recoveries on debts owned by the PF are included. We don't include any future expectations.... Kevin.
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