hazellend
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Post by hazellend on Aug 16, 2017 19:55:03 GMT
coolingdude, thank you so much for your efforts and hard work.
Seriously, the info you give out for free is amazing. You are very generous with your time, thanks again!
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macq
Member of DD Central
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Post by macq on Aug 16, 2017 20:08:20 GMT
See ablrate no egg on Edwina's face...Thank you's due to cooling_dude for protecting our 'nest egg's'. just when people feel a bit better you put up a picture like that
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blender
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Post by blender on Aug 16, 2017 22:09:12 GMT
Thanks, CD. All credit to Ablrate for being open about the situation with this Borrower and for making what seems to be a change for the better in the relationship. However, it should not be for lenders to do the DD on security and to supervise the required arrangements. Trust between the platform and important borrowers is necessary, but not sufficient.
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ptr120
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Post by ptr120 on Aug 17, 2017 19:18:39 GMT
Hi ablrate now that repayment has finally been made in full can you please provide a postmortem on what exactly happened here?
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Post by supernumerary on Aug 18, 2017 8:51:12 GMT
Any further news please? We sent an email saying payment on next interest day (which practically will be Friday) Thank you for ensuring that the timely final repayment on this loan arrived.
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Post by epicurean on Aug 19, 2017 13:35:56 GMT
Documentation/due diligence risk is as high as credit risk. This is not reflected in the lending proposal documents. I think it would be a good idea if a section is added on exactly how the transaction will be executed.
Taking valid security is hard work as evidenced in this case. All the major banks outsource security taking to external lawyers above a certain (relatively low) value threshold. This is after they realised post-2008 that a lot of the security they had taken in-house was invalid due to numerous errors.
The standard security taking process is: - The lender's lawyers prepare the security documents and opine on its validity for the purposes of the transaction - The security documents are executed by the borrower and held by the lender's lawyers - The lender's lawyers undertake to register the security at Companies House/Land Registry on drawdown (i.e. perfect the security) - A condition precedent to drawdown will be to check that the lender's lawyers hold executed security documents; the lender's lawyer will provide a letter to the lender confirming that all the conditions precedent (of which there are many) are satisfied prior to drawdown
I'd also note that it seems a standard loan document is used for all loans which is 'tailored' to the loan with using of a covering sheet. This is probably ok for small vanilla loans but it worries me when used for anything complicated without a lawyer reviewing the document still works as intended.
A large and/or complicated transaction will typically spend 3/4 weeks in documentation. This is part of what makes small and complicated loans uneconomical.
The borrower normally pays all legal costs. If Ablrate is covering legal fees from their own account this naturally creates a potential conflict of interest (i.e. a motive to reduce legal costs at the expense of thoroughness). I'm not saying this does exist but could exist (as it probably does on other platforms).
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ptr120
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Post by ptr120 on Aug 23, 2017 13:26:50 GMT
Hi ablrate now that repayment has finally been made in full can you please provide a postmortem on what exactly happened here? Hi ablrate - a gentle nudge - it would be good to have the promised postmortem on this. There are also two other loans with potential security issues that you had highlighted. Please can we have an update on those too?
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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 23, 2017 19:42:14 GMT
Hi ablrate now that repayment has finally been made in full can you please provide a postmortem on what exactly happened here? HiĀ ablrate - a gentle nudge - it would be good to have the promised postmortem on this. There are also two other loans with potential security issues that you had highlighted. Please can we have an update on those too? He is on holiday until next week so might not be monitoring forums
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ptr120
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Post by ptr120 on Aug 30, 2017 8:15:10 GMT
Hi ablrate now that repayment has finally been made in full can you please provide a postmortem on what exactly happened here? Hi ablrate - a gentle nudge - it would be good to have the promised postmortem on this. There are also two other loans with potential security issues that you had highlighted. Please can we have an update on those too? Hi ablrate please can you consider this a slightly firmer nudge? I would really appreciate an update on the above.
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Post by ablrate on Aug 30, 2017 14:41:40 GMT
Hi ablrate - a gentle nudge - it would be good to have the promised postmortem on this. There are also two other loans with potential security issues that you had highlighted. Please can we have an update on those too? Hi ablrate please can you consider this a slightly firmer nudge? I would really appreciate an update on the above. We are awaiting some responses on this and will update soonest
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ptr120
Member of DD Central
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Post by ptr120 on Sept 5, 2017 11:38:03 GMT
Hi ablrate please can you consider this a slightly firmer nudge? I would really appreciate an update on the above. We are awaiting some responses on this and will update soonest How long do you expect these responses to take? Having already identified that there are issues regarding security on two loans, I'd have thought that this would be treated as more of a priority, and I'd really like to hear the post-mortem on this loan too.
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Post by ablrate on Sept 5, 2017 12:02:34 GMT
We are awaiting some responses on this and will update soonest How long do you expect these responses to take? Having already identified that there are issues regarding security on two loans, I'd have thought that this would be treated as more of a priority, and I'd really like to hear the post-mortem on this loan too. We are awaiting representations from the borrower's legal representatives, and that is not something we have any control over.
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Post by GSV3MIaC on Sept 5, 2017 12:29:55 GMT
The borrower being the 'intermediary', rather than the end borrower?
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Post by elephantrosie on Sept 7, 2017 0:52:02 GMT
what happened to this loan?
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elliotn
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Post by elliotn on Sept 7, 2017 4:11:24 GMT
what happened to this loan? Plenty of info above. Refinanced to MT. The outstanding question is what happened to abl's 2C funds if APF did not register it (or use the funds for it).
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