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 Apr 7, 2016 1:35:12 GMT
I have generally invested in loans where the borrower has a net worth several times the size of the loan. Some of these loans have defaulted and have been given predicted recoveries below 50%. In particular H**** I******** S******* Ltd The loan clearly states that the borrower has a net worth well over 10 times the amount outstanding, but the predicted recovery is only 40% !!! I'm concerned that the security section of this loan and others have being exaggerated, or ReBs have a weak recovery team. rebsrep can we please have an explanation? |
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Post by rebsrep on Apr 7, 2016 7:50:42 GMT
I've checked with Legals/Recovery this morning and this is their reply:
Currently the probability of recovery on that loan is set to our average expected level of recovery. This is because it is still very early stage in our recovery process on the loan. The % has not been assessed yet against the security etc. Our contact and communication with the borrower has been minimal.
A further assessment of the probability will be done in the next week or so as the recovery process progresses.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Apr 7, 2016 9:54:55 GMT
I've checked with Legals/Recovery this morning and this is their reply:
Currently the probability of recovery on that loan is set to our average expected level of recovery. This is because it is still very early stage in our recovery process on the loan. The % has not been assessed yet against the security etc. Our contact and communication with the borrower has been minimal.
A further assessment of the probability will be done in the next week or so as the recovery process progresses. Look guys, I know your trying to be helpful by introducing this feature and it does have the potential to be useful. But it becomes counter productive where you're assigning estimated recovery rates on loans where you've not yet had an opportunity to actually do any meaningful assessment. Surely in these cases it would be far better if you assess them as "not yet assessed" or words to that effect. We can then place more reliance on those loans that you have assessed.
Just trying to be helpful 
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Post by rebsrep on Apr 7, 2016 12:13:17 GMT
I've checked with Legals/Recovery this morning and this is their reply:
Currently the probability of recovery on that loan is set to our average expected level of recovery. This is because it is still very early stage in our recovery process on the loan. The % has not been assessed yet against the security etc. Our contact and communication with the borrower has been minimal.
A further assessment of the probability will be done in the next week or so as the recovery process progresses. Look guys, I know your trying to be helpful by introducing this feature and it does have the potential to be useful. But it becomes counter productive where you're assigning estimated recovery rates on loans where you've not yet had an opportunity to actually do any meaningful assessment. Surely in these cases it would be far better if you assess them as "not yet assessed" or words to that effect. We can then place more reliance on those loans that you have assessed.
Just trying to be helpful
Appreciate the suggestion, however you can't please all the people all the time. If we put "not yet assessed" then we'll simply get daily support requests and forum posts on "why have you not assessed it yet, how long do we have to wait" etc etc. The idea is that it gives you an idea for all your 'in recovery' loans as a group what capital you might expect back. It will always be a moving feast, it's the nature of SME lending.
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