fric
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Post by fric on Sept 20, 2017 8:10:06 GMT
Three more mortgage loans bought back from my portfolio today by Hipocredit. The reason shown in the statement is "other". I think the reason they should show is " GREED". Mintos is supposed to be a platform to invest on, not to have your investments taken away from you for no good reason. I had 2 loans ending prematurely yesterday - one with 12% and one with 12,4%.
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Rob
Posts: 138
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Post by Rob on Sept 20, 2017 9:02:30 GMT
Three more mortgage loans bought back from my portfolio today by Hipocredit. The reason shown in the statement is "other". I think the reason they should show is " GREED". Mintos is supposed to be a platform to invest on, not to have your investments taken away from you for no good reason. I had 2 loans ending prematurely yesterday - one with 12% and one with 12,4%. If these were Hipocredit loans, I don't know why they would buy these back as they currently have loans on the PM for up to 12.7%. The loans they bought back from me were at 14.9% to 15.2%. As more of these loans default, I find them less attractive in any case. In default, they only pay 6% interest. Whilst I am sure I will get my principal back eventually (due to low LTVs), I have some which have been in default for over a year.
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Post by rahafoorum on Sept 20, 2017 10:32:49 GMT
Low LTV is no guarantee of recovery in case there's no liquidity for the asset. It might be low LTV, but a location where no-one actually buys anything nowadays.
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Post by gmaxkenny on Sept 20, 2017 12:37:00 GMT
Yesterday I had 4 loans between 14.5% and 14.9% bought back and today 2 at 12% and 12.4%. I already had all my loans over 15% for sale and yesterday added all loans over 14.5%. It now seems that I will have to dispose of all Hipocredit loans with whatever premium I can get. Just a thought can a loan be bought back if it is listed on the secondary market? If not it could be a way of stopping them buying them back.
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Post by kilozulu on Sept 20, 2017 18:03:59 GMT
yep, now also 15%s and 14%s are disappearing to be noted that it seems only loans with perfect or almost perfect payment history are being bought back, thus loans which were clearly priced above current market risk/return premium levels, also loans which still have some duration left. I still have one 19.9% with just a few month payments left, and 17.5%, 16.9% etc with regular payment delays. Very dissapointing behaviour by Mintos/Hipo group.
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Post by explorep2p on Sept 21, 2017 14:07:07 GMT
Many loans are currently being repurchased by Hipocredit. Hipocredit has obtained a bank funding line and it is cherry picking all the best loans to repurchase.
It is extremely disappointing behaviour that will damage the relationship with investors. It also means that no Mintos loans should trade at much of a premium as all of the lenders have this 'call option' feature.
We have also just been informed that Hipocredit is no longer connected with Mintos.
We will publish a post on our site shortly once we get further information.
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Post by explorep2p on Sept 27, 2017 11:21:29 GMT
We've published a short post on this situation following some discussions with Mintos. We think there are implications for purchasing any loans at a significant premium from any lender on the Mintos platform going forward, as many other lenders could benefit from reduced funding costs in the future. Hipocredit uses fine print to its advantage
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Post by captainconfident on Sept 27, 2017 15:42:24 GMT
Anyone want to buy my car? If it runs badly and breaks down, you can keep it but if it turns out to be reliable, you have to sell it back to me when I say.
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Post by kilozulu on Sept 28, 2017 15:17:20 GMT
We've published a short post on this situation following some discussions with Mintos. We think there are implications for purchasing any loans at a significant premium from any lender on the Mintos platform going forward, as many other lenders could benefit from reduced funding costs in the future. Hipocredit uses fine print to its advantageGood article. I can only second the point that there will be investors facing losses due to this. I know because, being early investor, had quite a few of those high interest rate loans and was conciously selling them off, not feeling comfortable with significant interest rate differential versus current market rates, and preffering to cash it in when possible. People were paying 5-10% premiums, up to 15% in exceptional cases. Fortunately for me I had largely sold off the best stuff, so now seeing Hipocredit behaviour is just irritating because I lost a few thousand euros of loans with interest rates 2-4% above my next best option. But for people who paid 15% premium to get a piece of high-rate loan to now see it bought back at book value must be more than irritating.
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shimself
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Post by shimself on Sept 29, 2017 20:26:55 GMT
It's not exactly fine print, Mintos must always have been fully aware of this possibility, it's a selling point from a borrowers pov . I've PMd Mintos two days ago, ostrich time apparently. Though I'm not sure what they can do. They could obv change the agreement with borrowers for the future, and I suppose they could voluntarily reimburse the victims, how much is this, can they afford it?
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Post by zeverare on Sept 30, 2017 11:08:11 GMT
Yesterday I saw a small 17% loan offered, checked the loan book and there was also a 15,5% one. Didn't see anything wrong with it, fair LTV and short term. Did I miss something or they just forgot to fill in the "mark to market" field?
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kulerucket
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Post by kulerucket on Sept 30, 2017 12:21:54 GMT
They don't seem to want any of my loans all at 15%. They haven't touched them. I don't know whether to be happy or worried about that.
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fric
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Post by fric on Oct 2, 2017 5:56:01 GMT
There are loads of mortgages at 10% on primary market. Has anyone spent the time looking if pictures you have already seen before pops up in one of them?
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Rob
Posts: 138
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Post by Rob on Oct 2, 2017 6:31:46 GMT
There are loads of mortgages at 10% on primary market. Has anyone spent the time looking if pictures you have already seen before pops up in one of them? Just did a quick check of one of the loans that was bought back from me. 19579-01 was at 15.4% when I had it. It is now relisted under number 1533739-01 at 8% with buyback guarantee!!! I have no doubt that many of the other ones bought back from me will have suffered the same fate. It is already 45% sold, so no doubt they will use the money to buy back more loans soon.
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fric
Member of DD Central
Posts: 199
Likes: 79
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Post by fric on Oct 3, 2017 5:39:43 GMT
There are loads of mortgages at 10% on primary market. Has anyone spent the time looking if pictures you have already seen before pops up in one of them? Just did a quick check of one of the loans that was bought back from me. 19579-01 was at 15.4% when I had it. It is now relisted under number 1533739-01 at 8% with buyback guarantee!!! I have no doubt that many of the other ones bought back from me will have suffered the same fate. It is already 45% sold, so no doubt they will use the money to buy back more loans soon. Ouch... I'll be honest, I said that partly in a joking manner, didn't really thought it might happen. That's just terrible business practice, I surely won't be buying anything from them anymore.
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