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Post by extremis on Aug 19, 2017 22:16:46 GMT
In the system these loans show still as current, not repaid, just fully owned by Hipocredit. Which probably means Hipocredit decided to buy-back and reissue them at lower yield, keeping the spread to themselves. Probably. Or they could just keep those great performing loans for themselves (assuming they have the funds) and list on Mintos some newer, more risky loans, with much lower interest rates and under the new structure - until some of those loans prove solid performers and get bought back, and so on. Of course it's their right to do so, they are not breaking any rules (just like the support already said), but for me Hipocredit loans nowadays look a lot less attractive than the older ones. I have also noticed a recent surge on the number of these fine performing high interest loans sold on SM even at very low premium; might be a coincidence, but could also be an attempt to gain even a small amount of money before they actually get bought back by Hipocredit. Anyway, i doubt they will buy back all of them at once.
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Post by extremis on Aug 12, 2017 16:30:33 GMT
Where did the Edit button in Auto Invest section go? Hope it's only temporary and they will bring it back soon.
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Post by extremis on Aug 9, 2017 16:24:40 GMT
p2portdotcom, i think for default rates it would be better to divide defaulted loans amount by total outstanding loans amount (not total issued loans amount) as the defaulted loans amount figure gets lower every time a loan is recovered or written off (bad debt). Therefore, defaulted loans amount does not represent the sum of defaulted loans from the beginning (as the loans issued figure does), but only the current sum of defaults.
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Post by extremis on Aug 7, 2017 17:15:51 GMT
Yes, this has also happened to me with Debifo late loans some time ago. You don't need to worry too much though: these 2 loans appear ok and will probably be repaid after a few days. But if you can't wait / don't want to take the risk, you can always try to sell with a small discount on SM.
I have defined a minimum term of 1 month to my Autobidder profile for invoices to avoid purchasing late loans. But this way i miss some 20 days, or so, good invoices that i would like to get a part. Anyways, i think the solution to this is to enable Autobidder take the term in days (not only months), so we could specify loans with remaining term e.g. >15 days.
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Post by extremis on Aug 6, 2017 20:36:27 GMT
Loan to value ratio. Generally the lower the better, but cars are not always trustworthy collateral: i have seen car loans with LTVs as low as 10-20% to default and nothing get retrieved (car destroyed/stolen?). Still better than nothing, imho.
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Post by extremis on Aug 6, 2017 13:11:06 GMT
Mogo loans’ LTVs are very high, often more than 100%. They offer buybacks for these kind of loans. Defaults occur and s..t happens. Still their profit H1/2017 was astonishingly good. Any idea how this is possible? The borrowers are charged 30+% interest rates, while investors get only 13% or so; a huge margin if you ask me. Mogo's default rates are relatively low (4% reported i think) and bad debt for loans not covered by buyback guarantee is around 2% currently. Therefore, they can easily cover their losses, operating expenses and still make a good profit. But as fric mentioned above, things can change dramatically in an economic downturn. This is the risk we are taking; whether the returns justify it or not i can't say for sure...
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Post by extremis on Jul 29, 2017 16:37:13 GMT
One thing worth remembering is that KYC / AML requirements change. So it's entirely possible that you signed up to a site under earlier regime A, and then subsequently the rules (laws) changed and you were operating under regime B. I think this is a very serious issue and Lendy is not the only p2p platform affected. What if someone has passed all the KYC / AML requirements, has deposited some funds and after some time the rules change and he / she is unable to provide the additional required documents (for whatever reason)? Would he / she loose any funds deposited then? I am afraid if KYC / AML rules keep getting stricter all the time sooner or later someone will loose his money invested.
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Post by extremis on Jul 27, 2017 21:09:44 GMT
Of course not. Regulation changes in Latvia about a year ago made the new structure necessary for loan originators with local operations, like Hipocredit, Banknote and Nord Lizings. Despite issuing loans in Latvia (also), Mogo has not adopted the new structure to day, which is a mystery to me.
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Post by extremis on Jul 27, 2017 19:16:30 GMT
This is certainly not good news as the new loan structure is more risky for investors. Moreover, Lendo is currently the largest loan originator on Mintos (29% by volume). According to Mintos:
"The new structure stems from new regulations imposed by the local supervisory authorities in Georgia, where Lendo operates".
Does this mean that other loan originators with operations in Georgia (e.g. Creamfinance) will also adopt the new structure?
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Post by extremis on Jul 8, 2017 23:00:40 GMT
You need to (manually) add all kinds of interest (interest, delayed interest, interest on rebuy, etc.), secondary market transactions and subtract any fees; the result is your return for the year selected. At least that is what i did for my tax report. Unfortunately, the annual returns are not calculated automatically (yet).
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Post by extremis on Jun 29, 2017 14:35:20 GMT
Well, i also think that the second scenario (i.e. the establishment of a provision fund type structure) is more consistent with investors' expectations from Buyback Guaranteed loans. But i don't think Eurocent case will be the beginning of the end of buyback guaranteed loans; it's more like a reminder that buyback guarantee does not mean risk free.
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Post by extremis on Jun 28, 2017 22:40:04 GMT
rahafoorum , I think only those investors that had invested in at least one Eurocent loan got the announcement. Not true. I received the e-mail from Mintos a couple of days ago even though i don't have (and never had) any Eurocent loans. kilozulu, i am also very curious what will happen if Eurocent finally defaults, but i wish it will all end well and no fellow investor looses any money.
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General EUR P2x Discussion
omaraha
May 31, 2017 16:43:01 GMT
Post by extremis on May 31, 2017 16:43:01 GMT
Of all the 13 platforms where I have invested money, Omaraha is the 5th most profitable. Very interesting! I was wondering what is your top 3 platforms in terms of profitability. I have been thinking for a long time now to join Omaraha, but the lack of SM has hold me back; when they implement a SM i will definitely give them a try.
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Post by extremis on May 18, 2017 8:54:05 GMT
Loan Performance Details are back, so everything is good again!
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Post by extremis on May 17, 2017 23:50:17 GMT
Today i have checked the statistics page and loan originator stats are missing. I hope this is only temporary and not a planned change, as this is vital information (default rates per loan originator, overdue loans, etc).
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