mikes1531
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Post by mikes1531 on Mar 8, 2018 3:58:17 GMT
As I've been too much of a negative nelly recently, as a positive suggestion - perhaps a move away from the default 6 month loan term? Given that 50% of your loans are going overdue recently, it would seem sensible to set more appropriate timeframes based upon the size and scale of the project. I can understand why someone might think longer loans would help, but consider what happens to the LTV of a loan during the course of a 12-month loan. Add in a bit more time to get a receivership in place, the reports written, and an exit strategy agreed, and by the time the security actually is sold the LTV will have risen to the point where a full recovery would be virtually impossible.
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mikes1531
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Post by mikes1531 on Mar 8, 2018 3:53:06 GMT
... there are ever more loans running late ... and I worry FS will lose control of the situation. I'm afraid I'm not as optimistic as adrian77. I worry that FS HAVE lost control of the situation.
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mikes1531
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Post by mikes1531 on Mar 6, 2018 15:54:35 GMT
"9.11 Details of the fees which Lendy charges borrowers are set out in the relevant Loan Contract, and these are, typically, an arrangement fee, an exit fee, and a loan monitoring fee."Lendy typically charge borrowers a loan monitoring fee. What does that pay for? Cowes Week??
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mikes1531
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Post by mikes1531 on Mar 6, 2018 15:49:42 GMT
I don't know if I should laugh or cry based on Lendy's confidence on our intelligence (or lack of it) This episode gives us a bit of a clue what sort of audience Lendy are aiming for. The sooner they can rid themselves of investors who understand what's going on, the happier they'll be!
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mikes1531
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Post by mikes1531 on Mar 5, 2018 23:17:42 GMT
It would appear that we lender/investors have to agree to the terms of the Loan Contract with the borrower.
Do we have any right to see the terms we've agreed to?
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mikes1531
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Post by mikes1531 on Mar 4, 2018 21:57:34 GMT
Suggestion for improvement -- User comments on individual loans
AC have a feature whereby it's been possible to enter a comment about a loan for quite a while. These appear when looking at the loan's page or the Browse Loans or Yours Loans lists. I find this feature very useful and use it a lot. Now that AC have allowed ISAs to have a MLA option, they have chosen to allow two comments for each loan, one that appears when viewing the Standard account and the other when viewing the ISA. I can understand that there might be occasions when an investor might wish to have different comments for a given loan in their different accounts, so I can't argue against that.
Most of the time, however, I would like to be able to see the same comment about a loan no matter which sub-account (Standard vs. ISA) I'm viewing at the time. (Example: Date of next expected AC update.) So what would be really useful for me -- and, I expect, other investors as well -- would be the ability either to keep those two separate comments in sync, or to be able to click a button that would duplicate whatever comment I'm looking at into the other account. Personally I'd prefer that syncing was the default, so that the only time the user would have to take action would be if they wanted to maintain separate comments, but that might not be others' preferences.
I should add that I really do appreciate the way AC have implemented the ISA vs. Standard display for the MLA option. It is easy to switch back and forth between accounts, so I can copy comments from Standard account to ISA and vice versa without a lot of difficulty. But it does require at least seven actions (Highlight/Copy/SwitchAccount/Edit/Paste/Submit/Close) for each one and it would be a lot easier if the same could be accomplished with a single click.
Any thoughts?
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mikes1531
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Post by mikes1531 on Mar 4, 2018 21:02:29 GMT
Lendy could give 3-5% cashback if they need to. Could they afford that? Are their up-front fees actually that large? If not, where would they get the funds to pay the CB?
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mikes1531
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Post by mikes1531 on Mar 4, 2018 16:26:35 GMT
Interesting that Lendy have now given a firm deadline of 9th March 2018 for the £2m part-repayment. mary : Unfortunately, they didn't actually say that. What they wrote in the 1/Mar update was...
Has anyone asked Lendy Support exactly what they meant by that? I'm specifically interested in knowing whether that's the date they expect to receive the money enabling the extension and £2M repayment to investors, or whether that's just the date by which they expect to have everything agreed. If the latter, then when might they expect to receive the repayment? What is the state of the freehold sale? Has contract exchange taken place? If so, when is completion set for? If not, how long do they think it will be before the repayment is received?
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mikes1531
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Post by mikes1531 on Mar 4, 2018 16:14:02 GMT
Lendy aren't exactly having a lot of success with DFL035, the second charge loan for DFL008 that went live with 1% CB a few days ago. Two-thirds of that £420k loan wasn't taken up by pre-funding and is now sitting on the SM. If some of that still remains on the SM at the end of the month when the CB offer expires, then Lendy will have a really hard sell on their hands. In that case, I'd expect Lendy to come up with a way to extend the CB deal, but they'll still have a problem because the current tranche is is only about a quarter of what they're needing to raise for DFL035. How long can the borrower wait for the DFL035 funding before construction grinds to a halt for lack of funding? ... and then there is a £5.2M loan in the pipeline.... I cannot see that getting filled in the current climate. I also can't see a successful funding of the £5.2M loan any time soon. And especially not inasmuch as £8M of the £10M DFL005 repayment -- that we were led to believe was imminent -- is in the process of being put off for a further 4-6 months.
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mikes1531
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Post by mikes1531 on Mar 4, 2018 5:02:10 GMT
Cashback Offer added to the pipeline second charge loan. Not that the CB seems to have generated much enthusiasm for this loan. It looks like pre-funding covered less than 30% of the requested £421k, and £280k still is for sale on the SM a few days later.
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mikes1531
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Post by mikes1531 on Mar 4, 2018 4:53:17 GMT
I note Lendy Support still haven't corrected the Bonus Accrual 'issue' though... @new2p2p: Don't hold your breath waiting for a 'correction'. I put the following question (regarding DFL005) directly to Lendy Support... ... and the response I received a week later was... From that reply, I conclude that Lendy Support think the display was wrong before and it's correct now. I haven't found anything in the description of the Bonus Accrual policy suggesting that there is no BA during the first 30 days of the Tolerance Period, or that BA is paid only for each full TP month elapsed, but that is the implication of the reply. AFAIK, that's inconsistent with BA payments Lendy have made in the past, so either Lendy overpaid BA in the past, or whoever wrote that reply doesn't understand the situation. I've had so many disappointing responses to support requests that I'm concluding that I'm wasting my time sending in questions. I really don't know why I bother!
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mikes1531
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Post by mikes1531 on Mar 4, 2018 4:35:20 GMT
(And is increasing for loan parts that are overdue by more than 180 days and therefore outside the Lendy designated 'Tolerance Period', which hopefully answers spiral 's question.) Thanks, I have also noticed on the default page it says "These are loans where we are no longer confident about the borrowers ability to repay the loan and have therefore officially defaulted the loan. Monthly interest payments are not guaranteed. We are taking all appropriate steps to recover 100% of the capital from these loans." Therefore implying that interest does accrue. Yes, but the quote only says Lendy are taking steps to recover 100% of capital. It definitely does not say they are taking steps to recover any of the accrued interest. One potential interpretation, therefore, is that is "interest continues to accrue, but we're doing nothing to try to recover that from the borrower"!
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mikes1531
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Post by mikes1531 on Mar 4, 2018 0:43:06 GMT
Given the new situation and that the security package has changed this should be launched as a revised PBL ideally and lenders can judge it on its merits. Instead existing lenders are effectively locked in. I don't know the reality of a new PBL getting filled ... I don't know either, but I suspect Lendy have seen from the performance of the most recent loans released that they couldn't count on sufficient support to launch a new PBL and simply hope enough investors would allow their DFL005 funds to be rolled over into the new PBL. They also know what happened with the interest credited to investors' accounts a few days ago, and we can guess it wasn't what they would have liked. As a result, IMHO they feel they have to lock their DFL005 investors into an extension in order for it to work. About all that those who would rather have had an easy exit can hope for is that the principal reduction and the consequent LTV decrease, plus a promise -- could we be so lucky? -- that there will not be further tranches offered, coupled with the extension, will make the parts of the continuing loan attractive enough to investors that the backlog of parts on the SM will be taken up and those who want to exit can do so without having to stand in the SM queue for an excessive time. I suppose I really ought to put my rose-tinted specs away now!
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mikes1531
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Post by mikes1531 on Mar 4, 2018 0:10:09 GMT
But how are Lendy going to get a valuation that's large enough to support a loan large enough to fund the repayment of all the capital/interest/fees that are outstanding on these loans?
Will they be making a 100+% LTV loan using those Lendy bonds where their investors won't be told the LTV? Or perhaps they're not intending to repay all that's outstanding? If Lendy are the new lender, and it's not going to be a full repayment, how can they avoid a massive conflict of interest?
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mikes1531
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Post by mikes1531 on Mar 3, 2018 23:54:26 GMT
Why on earth would anyone want to buy into a second charge loan at 12% when there is nearly £200k of the original first charge available to buy? I can't see how Lendy are going to shift this without significant bonuses. Cash back. They managed to shift all the 2nd charge on the Scottish estate when there was a chunk of first charge on the market - i know times have changed a bit but it's still the same concept, multiple passive investors who have prefunding set for every loan Lendy aren't exactly having a lot of success with DFL035, the second charge loan for DFL008 that went live with 1% CB a few days ago. Two-thirds of that £420k loan wasn't taken up by pre-funding and is now sitting on the SM. If some of that still remains on the SM at the end of the month when the CB offer expires, then Lendy will have a really hard sell on their hands. In that case, I'd expect Lendy to come up with a way to extend the CB deal, but they'll still have a problem because the current tranche is is only about a quarter of what they're needing to raise for DFL035. How long can the borrower wait for the DFL035 funding before construction grinds to a halt for lack of funding?
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