art
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Post by art on Aug 24, 2016 14:52:59 GMT
Had a conversation with support today, apparently all Hipocredit loans are off the market as they are looking for alternative funding.
This is very disappointing. These are probably highest quality loans on the platform and if they are not available to retail investors and institutional investors will be prioritized from now on it will make Mintos platform a lot less attractive overall. There are not many mortgages available on either primary or secondary market and now most of them are not investable.
Then again, what does it mean for the future of the platform, are they going to pivot towards institutional money and effectively crowd out retail investors?
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
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Post by JamesFrance on Aug 24, 2016 15:16:58 GMT
It's surprising that they are removing their own mortgage loans from the market as they were much my preferred loans although they had become difficult to invest in anyway. Most of my auto settings don't seem to be doing anything either, probably because the interest rates for so many have been reduced since I set them up and I don't want to lower them while there are better rates available. Very disappointing but quite common for platforms to change from what we expect when we start investing.
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art
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Post by art on Aug 24, 2016 15:29:25 GMT
I am genuinely interested if Mintos will start moving towards institutional investors. As an example, LendingClub has about 20-25% share of retail investors, if Mintos will go the same way there will be nothing to invest in very soon. I am personally only interested in secured loans and there is like 10 mortgages available on the primary market now.
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Sr. Lobo
Member of DD Central
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Post by Sr. Lobo on Aug 24, 2016 17:43:43 GMT
Time to start moving to a new platform. I don't want to be invested in mogoland.
Bad movement, one day they will try to change things back and find they have lost investors confidence.
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yacop
Posts: 68
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Post by yacop on Aug 25, 2016 7:04:43 GMT
Hi,
bashing Mintos here is a bit far fetched. I am sure that it was not Mintos's Intention to let Hipocredit go as it is in its best interest to have multiple sources for loan supply -in order to grow and to stay independent from any loan originator.
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art
Posts: 22
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Post by art on Aug 25, 2016 7:27:48 GMT
yacop, you are right it is in their best interest to keep platform as diverse as possible and they are doing pretty good job at it. However, Hopocredit is a company related to Mintos. Up to about end of last year it was also called Mintos and then they changed a name to avoid confusion. As I understand it, Hipocredit is essentially mortgage-originating arm of Mintos. It does seem odd that they would remove from the marketplace their own loans, doesn't it?
I do have a lot of respect for what Mintos does and for their management team, hence its important to call them out when they do something that doesn't seem to be aligned with interests of retail investors.
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yacop
Posts: 68
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Post by yacop on Aug 25, 2016 8:31:16 GMT
Okay, I did not know that they were interconnected. I can agree that this is a little bit odd from an investor's perspective.
Assuming that Hipocredit found a cheeper source of money, then it is in their best interest to do so. Any other loan originator would do the same. Any investor would follow the same principle and remove its money if risk/reward is unfavourable.
This is called market.
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art
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Post by art on Aug 25, 2016 8:43:16 GMT
yacop, sure they can get financing from wherever they see fit, but I am looking at this from my selfish retail investor perspective. I am concerned that going forward best loans will be bundled together and sold off to large financial institutions and mostly lower quality loans will be left on the market.
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yacop
Posts: 68
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Post by yacop on Aug 25, 2016 8:52:18 GMT
yacop, sure they can get financing from wherever they see fit, but I am looking at this from my selfish retail investor perspective. I am concerned that going forward best loans will be bundled together and sold off to large financial institutions and mostly lower quality loans will be left on the market. I have the same fear but there is nothing I can do about it. Can you?
Mintos wants to grow and I want to be part of the party as long as the music plays in my favor.
The issue is that all p2p-sites believe that growing at a fast pace without institutional money is not possible. This may be true to some extent but, retail investors are far more loyal. Mintos should look at Lendingclub: inititutional money was removed an loan origination, together with the share price, plummeted.
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Post by saraph on Aug 25, 2016 21:13:42 GMT
Time to start moving to a new platform. If this is what makes you want to move to a new platform, I'm not sure you'll stay on any other platform.
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m203
Member of DD Central
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Post by m203 on Aug 28, 2016 10:03:36 GMT
Noticed that my autoinvest isnt really doing anything. I guess this explains it. Do we have a comment from Mintos regarding this?
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Post by silverporka on Sept 5, 2016 15:26:46 GMT
It's a real shame Hipocredit are off the platform. They were my favourite loans and I have a lot.
It is also astounding given that it is a Mintos related company. What the hell is going on, a sister company of Mintos is quitting it's own platform...? How can they keep/attract loan originators if they won't even use Mintos themselves.....?
There are ways of diversifying your funding sources without sabotaging your own platform. I hope this is just a temporary thing.
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Post by buttchopf23 on Sept 5, 2016 15:54:10 GMT
well, if they found a cheaper alternative for financing, who can blame them? but I am with you, it's a shame given it's a company from the same Holding.
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Post by zeverare on Sept 5, 2016 21:28:03 GMT
They didn't mention it in their august newsletter or blog apparently those are only for good news.
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homes119
Member of DD Central
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Post by homes119 on Sept 10, 2016 14:06:33 GMT
Has Mintos officially confirmed this? What happens to existing Hippocredit loans? Will they be rebought?
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