ben
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Post by ben on Aug 12, 2016 13:06:18 GMT
SS have previously stated that all the negative days one, the borrorower are still paying the interst, obviously with the exception of the default one, so I assume this means month by month.
If SS are funding the interest on the negative days I would be getting out in a heart beat no way they could survive for long even with the provision fund.
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boble
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Post by boble on Aug 12, 2016 13:11:17 GMT
As Butch Cassidy said " time remaining or overdue is largely irrelevant, especially with bridging loans". However given the basic SS model of retained interest at drawdown, I would like to see SS treating the days remaining (+ve / -ve ) as a strict interpretation of the number of days interest cover retained by SS but not yet accrued to lenders (+ve days) or the number of days of uncovered accrued interest to lenders (-ve days). So when a borrower of a loan beyond the notional term makes a payment to cover interest the negative days is reduced accordingly. The current situation with the website not showing borrower cashflows to SS is ambiguous as SS could be covering the monthly interest themselves. The change eralier this year for accrued but unpaid intrest on defaulted loans was prompted by consideration of FCA requirements, but didn't really go far enough IMO. The issue in my mind is one of transparency rather than any immediate more serious concerns. This is also my view, however, as the borrower is technically in default, I think they should be required to pay a further three months interest in advance. If they repay their loan early the overpayment of interest will be credited on their redemption statement.
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Post by mrclondon on Aug 12, 2016 13:14:40 GMT
SS have previously stated that all the negative days one, the borrorower are still paying the interst, obviously with the exception of the default one, so I assume this means month by month. If SS are funding the interest on the negative days I would be getting out in a heart beat no way they could survive for long even with the provision fund. Agreed. Which is why it should be in savingstream 's interest to make the extent of interest cover held by SS clear on the loan pages of the website so it is visible to all. I am in the equivalent of negative days loans on other platforms (e.g. AC) simply because I can see the borrower cashflows to the platform are being paid on time month in month out. I can't on SS, so have to steer clear.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 12, 2016 13:14:57 GMT
I note that the three loans with updates today reporting extensions covered by interest, have all (AFAICS) had corresponding extensions on time remaining.
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boble
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Post by boble on Aug 12, 2016 13:50:13 GMT
I note that the three loans with updates today reporting extensions covered by interest, have all (AFAICS) had corresponding extensions on time remaining. It would be good to have advice as to the specific dates covered.
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Liz
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Post by Liz on Aug 12, 2016 15:15:27 GMT
liz, yes, I am implying that it could be a reason for concern, however, others may take an entirely different view. I think you are getting me mixed up with uncletone
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SteveT
Member of DD Central
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Post by SteveT on Aug 12, 2016 15:21:20 GMT
liz, yes, I am implying that it could be a reason for concern, however, others may take an entirely different view. I think you are getting me mixed up with uncletone It must be your hat 😉
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boble
Posts: 150
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Post by boble on Aug 12, 2016 16:31:41 GMT
liz, yes, I am implying that it could be a reason for concern, however, others may take an entirely different view. I think you are getting me mixed up with uncletone Oh, yes, so I did. So much for my new glasses.
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