ben
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Post by ben on Apr 24, 2016 17:17:10 GMT
I think a bit will go tomorrow although one loan nearly gone, the security should be ok for us the main problem is if thincats try to call it in as a default in the future it could be a bit of a mess and take awhile to return.
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spiral
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Post by spiral on Apr 24, 2016 18:57:29 GMT
I must admit, until today, I've never really thought about the impact of first/second charges in the event that the borrower defaults only on the second charge loan. How would that play out . Can TC call in the security if their part defaults even if ours is OK?
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Post by mrclondon on Apr 24, 2016 19:06:33 GMT
I must admit, until today, I've never really thought about the impact of first/second charges in the event that the borrower defaults only on the second charge loan. How would that play out . Can TC call in the security if their part defaults even if ours is OK? Yes TC can call in the security if the borrower defaults on their loan but continues to service the MT one; but MT as 1st charge holder could appoint an LPA receiver of their own choosing rather than whoever TC suggested.
The fly in the ointment is TC's debenture over the borrower, which means they could (would ?) force the administration of borrower prior to calling in the security.
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ben
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Post by ben on Apr 25, 2016 4:26:52 GMT
I must admit, until today, I've never really thought about the impact of first/second charges in the event that the borrower defaults only on the second charge loan. How would that play out . Can TC call in the security if their part defaults even if ours is OK? Yes TC can call in the security if the borrower defaults on their loan but continues to service the MT one; but MT as 1st charge holder could appoint an LPA receiver of their own choosing rather than whoever TC suggested.
The fly in the ointment is TC's debenture over the borrower, which means they could (would ?) force the administration of borrower prior to calling in the security.
I think would as would give them more control although I would have thought as they got the debenture over the borrower they would have also wanted 1st charge or taken 1st charge and left MT with the 2nd charge
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Greenwood2
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Post by Greenwood2 on Apr 25, 2016 7:20:34 GMT
F&P wooing MT by offering them the 1st charge, but TC requiring extra security to list the 2nd charge?
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SteveT
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Post by SteveT on Apr 25, 2016 7:34:10 GMT
[Mod hat off]
I can understand those looking to maximise their short-term returns favouring the 6 months loans at 12% but my sense is that 10% could look pretty attractive in 3 years' time for 1st charge security on (hopefully) what would be rather less than 60% LTV by then. A modest longer term stake for me.
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Post by Deleted on Apr 25, 2016 7:37:30 GMT
@bobo this is a drawn down loan funded from MT working capital (and possibly other underwriters), and is part of a joint fund raise with ThinCats. There can be no pulling of the loan, the borrower received his money Friday afternoon.
IMO the pricing of the loan is wrong, the TC 2nd Tranche should have been around 15% and this first charge around 12%. That said, the security should realise enough to cover the 1st charge loan, so if there was no other loan available in the p2p market at present this one would get some funds from me. But there are better deals available IMO.
The more RICS valuation reports I read the more concerned I become. I think p2p platforms are pinning too much hope on the valuers professional indemnity insurance. If, as has been suggested, failing to visit could have missed an obvious problem with the site, I wonder whether the insurance would actually payout. You may be right, but he has back-tracked in the past with our money on a property loan. MT themselves will have loaned on the deal. It doesn't mean that P2P have to take up the loans and I assume the tranche structure is to allow backing out. Like you I struggle with valuations, there are a lot of A1 service station/junction sites that are equally attractive, right now it is a piece of rough ground with some costs to clear. Historically there was no industrialisation there so apart from the odd mafia hit and localised environmental contamination it should be good to go.
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SteveT
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Post by SteveT on Apr 25, 2016 7:42:14 GMT
You may be right, but he has back-tracked in the past with our money on a property loan. MT themselves will have loaned on the deal. It doesn't mean that P2P have to take up the loans and I assume the tranche structure is to allow backing out. Like you I struggle with valuations, there are a lot of A1 service station/junction sites that are equally attractive, right now it is a piece of rough ground with some costs to clear. Historically there was no industrialisation there so apart from the odd mafia hit and localised environmental contamination it should be good to go. I doubt the multi-tranche structure has anything to do with potentially pulling tranches, else they wouldn't all have been funded and launched at the same time. More likely it's because the borrower was looking for an amortising loan then can pay down over 5 years but the MT platform structure isn't really set up currently for amortising loans.
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spiral
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Post by spiral on Apr 25, 2016 8:57:51 GMT
More likely it's because the borrower was looking for an amortising loan then can pay down over 5 years but the MT platform structure isn't really set up currently for amortising loans. That's how I read it too. The only thing I was surprised at was they didn't opt for shorter earlier terms. Because of this, I will be surprised if the 36 month runs to term (unless all the interest has been paid upfront).
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Post by opulence on Apr 26, 2016 15:31:42 GMT
Good Afternoon All,
Just incase this has slipped under the eyes of others.
The email describing these loans titled 'Five New Loans with...' sent on the 20th of April, listed the return to be 1% a month. I bought some loan parts and have since realised that the interest is only 10% PA, I have since sold my loan parts...
Regards,
John
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Apr 26, 2016 15:37:17 GMT
Reported by taca on same day.
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SteveT
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Post by SteveT on Apr 26, 2016 15:37:41 GMT
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Post by opulence on Apr 26, 2016 15:43:28 GMT
Ahh, thanks guys. I usually reside in the general discussions board, so I had a quick look in here before posting this but couldn't see anything!
Regards,
John
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ben
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Post by ben on Apr 26, 2016 15:44:43 GMT
I thought you could not sell until the loan was fully funded
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SteveT
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Post by SteveT on Apr 26, 2016 15:46:35 GMT
I thought you could not sell until the loan was fully funded Unexpectedly, the first tranche to fill became sell-able without waiting on the others.
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