mikes1531
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Post by mikes1531 on Mar 3, 2018 23:40:06 GMT
But it has lots of character!
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mikes1531
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Post by mikes1531 on Mar 3, 2018 23:39:08 GMT
... as FS have 1936 individual loans .... Considering the tiny staff and relatively very small cash balance FS has then ,unless the collections process is out-sourced, I just don't see how FS have the staff and time to chase all these late payers ... adrian77: I agree with your conclusion above, but I'm afraid your starting point is wrong. Yes, there are 1936 entries on FS's 'All active and past loans' list. But 1450 of those entries are for Completed loans. Of the remaining 486 loans, 43 are showing a status of Defaulted and the other 443 are classified as Active, though a fair number of the Active loans are well overdue. I can't see an easy way to determine how many of the Active loans are overdue, but I can say that I have 48 of those. If there are a similar number that I've managed to avoid, then that would mean a total of about 150 Overdue and Defaulted loans. Even that is a major overestimate, however, because where a loan has been made in tranches, every tranche will have an entry on that list. The overdue Formby Development, for instance, has seven entries. The infamous Whitehaven loan has five. And so on. A more realistic estimate of the number of non-performing FS loans might be about 100. But that's still a lot of loans/borrowers to chase, and ISTM that FS don't have enough staff at the moment to do all the necessary chasing.
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mikes1531
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Post by mikes1531 on Mar 3, 2018 22:40:14 GMT
Name and address missing off the pdf for the IFISA account, okay on the pdf for the Main account. Anyone else have the same problem? Yep same issue for the ifisa. I just get a "Dear ," A very useful new facility. fundingsecure: Is there any chance that when you're fixing the problem noted above -- I have it too -- you could add a total at the bottom of the right-hand ("Your investment") column?
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mikes1531
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Post by mikes1531 on Mar 3, 2018 22:09:14 GMT
May have a nibble but only for the initial tranche as I can see the developer coming back for more. adrian77: I'm not sure I understand the above comment. Since the first tranche was part of a larger facility, we should expect further tranches to be issued. (In fact they have been two more already.) Since all tranches of the facility are of equal priority in the event of a default, ISTM that if someone doesn't like the idea of "the developer coming back for more" they shouldn't be investing in the first tranche either. What am I missing?
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mikes1531
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Post by mikes1531 on Mar 3, 2018 21:57:05 GMT
It’s already filled, by one or more underwriters. That’s how the previous loan was repaid. The availability you see is simply underwriter holdings offered for sale to retail lenders. It makes little odds how long it takes to sell through. SteveT: It may not make any difference to investors directly, but if FS are paying their underwriters more than the 'normal' interest rate on this loan then the incremental cost has to be coming out FS's pocket -- and that can't help their viability as a platform. It does, of course, make their investors happy, and that's a positive thing for the platform, so it could well be a cost worth paying. Are we sure that actually happens though... have FS confirmed in writing anywhere? Mousey: I'm not aware of any clear statement from FS, but that's our understanding of the FCA 'rules' and AFAIK we have no reason to suspect FS aren't abiding by them. Besides, I'd be somewhat surprised if FS had such a big chunk of money lying about that they could put to this task for an indeterminate period. (It started out as about £1M back in mid-February, but it's down to about £600k now.)
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mikes1531
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Post by mikes1531 on Mar 3, 2018 21:36:55 GMT
No news is good news?? Or a box of chocolates FS is going to be sending all of the investors in this loan a box of chocolates? That's more than we've got so far. I'm ready!
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mikes1531
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Post by mikes1531 on Mar 3, 2018 21:34:15 GMT
I make the total capital of FS loans to be £1072k. I could not find this latest figure but I am sure you are right - this is even worse than I thought and could easily be my first FS loss - Smutty Stick! I filtered the list of 'All active and past loans' on 'formby', sorted on Status and then looked at the Active loans that don't have 'Hightown' in their title. First-priority tranches: £342k + £150k + £185k + £138k = £815k Second-priority tranches: £100k + £80k = £180k Third-priority loan: £77k Total: £815k + £180k + £77k = £1,072k
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mikes1531
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Post by mikes1531 on Mar 3, 2018 21:06:20 GMT
The accrued interest is £4.74 per £100 loan part, so the discount would be more than enough to cover the tax payable by a basic-rate taxpayer -- and the buyer would have a part of the first-priority loan. Still looks like a no-brainer to me! Yes..I know its only £4.74..I looked..but ive got 4 figures in it already..I don't want any more thanks..as its a no brainer I'm assuming you bought some ? The only buying I do on the SM is for my ISA. If I had some uninvested funds there, I would buy. If something I hold in my ISA repays before the first-priority loan reached 30 days to go, then I will buy some of this.
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mikes1531
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Post by mikes1531 on Mar 3, 2018 20:44:32 GMT
Agreed..credit where due..can I increase my investment in Tranche 1 though ? Secondary market? (At a discount may I add!) Most of the parts of T1 that had been offered on the SM at a discount have either been sold or withdrawn from sale (that's what happened to mine) but there still is one investor trying to sell £1500+ of it at -0.1%.
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mikes1531
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Post by mikes1531 on Mar 3, 2018 16:33:13 GMT
All platforms had application windows, Lendys was later than most Q1 16... We didn't start our application for full authorisation until late 2016. I have to wonder if Lendy have submitted their application or if their window for doing so is still open. If you look at the FCA register, the information is rather ambiguous. Application was submitted prior to April 16 they have indicated. I suspect that the window has closed. There seems to be an inconsistency here... ilmoro has said Lendy's application window was Q1 16 and that Lendy have indicated their application was submitted prior to April 16, which would be consistent with that. On that basis, the application has been in for about two years and some people are getting concerned about it taking so long. Lendy Support have said they didn't start their application for full authorisation until late 2016. On that basis, the application has been in for less than 18 months, which ought not be concerning, especially since Lendy have had to make some changes in their practices to satisfy the FCA. So who is right?
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mikes1531
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Post by mikes1531 on Mar 1, 2018 4:37:46 GMT
Seems someone has had 2nd thoughts..bought £1k and is trying to sell it at par...make it -1.00 % and I might consider it Or they're rather miffed that just as soon as the first tranche was funded fully, FS brought out another, equally-ranked, tranche... at a higher interest rate! I think that -- and the slow uptake on T1 -- means FS have recognised that they got very lucky with T1 and that there was no way they could raise funds for another tranche at the 12% rate of T1. But in the process fundingsecure will have upset the many investors who have provided them with T1's more than £0.5M. IMHO the honourable thing for FS to do to stop the negative feelings they have generated would be to raise the rate on T1 to match the 13% rate on T2. This episode certainly has left a bad taste in my mouth!
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mikes1531
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Post by mikes1531 on Mar 1, 2018 4:25:00 GMT
not sure I buy this explanation- granted the fire brigade have correctly failed the building but the work should have been specified by an architect. I've not paid enough attention. This project started construction a considerable while ago. Could all of the plans have been signed off before Grenfell? This chap started borrowing in August 2106 - I think he now owes £815K plus interest ... adrian77: I think you may have missed a tranche or two. I make the total capital of FS loans to be £1072k. The last loan made was for £77k and ranks behind all of the others. Holders of that loan should be very nervous, especially after the most recent delay announcement. ISTM that there's a good chance the developer will get little or nothing from the sale. Depending on whether the loan is in their name or an SPV's, they could end up being pursued by FS for any shortfall. In any case, I don't see how it could be to their advantage to delay the sale. I really don't think there's any chance someone is going to jump in and try to gazump the current buyer!
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mikes1531
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Post by mikes1531 on Feb 26, 2018 20:44:27 GMT
I just spent the last two hours diversifying my brains out in the IFISA MLA. 190+ loans. My wrist aches now. I still rather select my own, at this stage. ...and now I play the waiting game... Do you stick to loans with positive amounts available, or also queue up purchases on loans with no current availability ? Available AND non available. I have been working on my strategy since Christmas on the (in my naive view) optimum amount per good loan. Now they all have instructions assigned, and once fulfilled, each loan will provide the same monthly return - so easy to spot the late payers - and if any payments are outstanding for 7 days, its on my radar. 10 days, then its in my sights. I was bitten by the you-know-who loans, so now I am extremely fastidious about who I lend to. With luck and patience, I will be reasonably settled in each loan within a couple of weeks - and nicely diversified. dc848: I'd be very surprised if you can pick up all the parts you want of 190+ loans in a couple of weeks. My experience is that I put in a buy order and they can take months to complete. But perhaps I'm investing in loans with a lot less SM activity than you are, and/or I'm trying to buy larger chunks than you are. Can you please come back here in a couple weeks and report how well you're doing?
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mikes1531
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Post by mikes1531 on Feb 26, 2018 20:33:23 GMT
Interesting, does this sort of imply effectively an in-specie transfer out of the IFISA wrapper. If that is possible could you not then dump a loan out of the IFISA if you thought it would go bad (assuming you had the chance to). Not a bad feature actually! Can't you accomplish the same thing more simply by selling the parts of that loan on the SM? Or are you thinking of loans where parts are not sellable?
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mikes1531
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Post by mikes1531 on Feb 26, 2018 19:47:18 GMT
To me, this seems a reasonable bet for full recovery, inc all interest. The GDV is ~£14m, and approx £3m is required to complete the build, with the outstanding loan and interest at less than £2m with 1st charge priority. In round numbers... If paying £3M to finish the development would result in a building worth £14M, it would appear that the building as is ought to be worth about £11M. So the £2M owed to Lendy investors would appear to be well secured. But how does the money already paid by room/flat/unit buyers fit into the equation? If that were to come to £10M -- and I haven't a clue how much it really is -- and it isn't still sitting in a ring-fenced account but has been used already to cover prior project expenses, then there would be only £4M still to come. If £3M of that is needed to pay for the project completion, that would leave only £1M for Lendy investors and they'd end up with a significant loss. Can someone explain how this is supposed to work?
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