applets
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Post by applets on Aug 26, 2017 7:07:43 GMT
It is important that platforms offer lenders the opportunity to diversify between types of property, i.e. residential, commercial etc and between borrowers (we therefore need to know who the borrowers are).
Particular regard needs to be given to the number of lenders on the platform and their likely limit for any individual loan/ project. I would suggest that large projects that require tranche after tranche of funding are not really the way forward for the majority of lenders. I am sure a good supply of new borrowers/ projects seeking up to £250k of funding with reasonable LTV, accurate valuations and demonstrable due diligence would be welcomed by lenders.
We should know when a platform decides to take on responsibility for paying interest when the borrower fails to (as has emerged recently with MT). The ABL record of interest payments by borrowers is a useful model for others.
Borrowers should pay interest monthly (and lenders receive this), not at the end of term as per FS.
Platforms should put in place loan monitoring arrangements proportionate to the type/ amount of loan and promptly share the results with lenders.
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applets
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Post by applets on Aug 24, 2017 18:01:11 GMT
applets With regard to an ongoing loan, the T&C's can be changed, but only on an indivdual basis and by mutual consent. Thank you. I am grateful. I am in this loan and don't necessarily disagree with SM sales of default loans. I was, however, concerned at what appeared initially to be a unilateral change of the terms and conditions by MT and then the proposal to change them on the basis of a poll of what is likely to be a subset of lenders who happen to use this forum.
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applets
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Post by applets on Aug 24, 2017 16:06:57 GMT
Inevitably, those holding the loan and who would like to get shot of their holding will vote to change the rules (terms and conditions) to allow them to achieve this. I maintain that terms and conditions should not be changed during the course of a loan on the basis of such a poll.
Perhaps someone with some legal knowledge might wish to pronounce on whether the approach MT are now taking to change the terms and conditions is actually lawful.
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applets
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Post by applets on Aug 24, 2017 15:40:38 GMT
Well I voted No But thats purely based on T&Cs, as I posted elsewhere this week I don't have an issue with trading in SM, as long as its clearly marked as default(ed/ing), however I don't agree with this when its contrary to the T&Cs as that makes it feel like the T&Cs are optional. Change the T&Cs to allow this and I would switch to Yes I agree with you. While not necessarily disagreeing with the principle of SM trading of defaulted loans, I do disagree with changing terms and conditions during the course of a loan and particularly on the basis of a poll of users of a forum which is unlikely to comprise all holders of the loan. The terms and conditions are supposed to have a basis in law and not be subject to change in this fashion. Perhaps MT should take legal advice first.....
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applets
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Post by applets on Aug 24, 2017 15:35:19 GMT
Acknowledged - this is our mistake. Just been discussing this with SophieThing and what we should have put in the clause is "Please note that you may not be able to engage on secondary market trading in a Loan which has defaulted. Whether secondary market trading is at the discretion of MoneyThing." (or something similar to same effect). I will however run a quick poll as I would be grateful for your views on this since various platforms approach defaulted loans differently. Will setup a poll now... Regards, Ed While not necessarily disagreeing with the principle of SM trading of defaulted loans, I do disagree with changing terms and conditions during the course of a loan and particularly on the basis of a poll of users of a forum which is unlikely to comprise all holders of the loan. The terms and conditions are supposed to have a basis in law and not just changed like this. Perhaps you should speak to your solicitors first ......
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applets
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Post by applets on Aug 24, 2017 14:44:09 GMT
As MoneyThing has decided to ignore clause 12.8 of its new terms and conditions and permit SM trading in a defaulted loan on Saturday, perhaps we could be told what other terms and conditions will be ignored during the recovery process.
It will certainly be more difficult to lend on MT in future in the knowledge that the terms and conditions that apply when a loan is made may be varied during the life of a loan and then ignored completely when it suits.
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applets
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Post by applets on Aug 23, 2017 12:05:35 GMT
Afternoon, We have added two more documents to loans BL00046 (Darwen) and BL00048 (Burnley) giving full details and experience of the borrowers behind the two projects. As you can see, the team is very experienced in property developments, which is why we were confident to list both projects on the platform at the same time. Also, we are currently in advanced talks regarding further projects with this borrower and your valued feedback would be much appreciated on future loans. Many thanks, Gordon While, like many lenders, my preference is for pawn loans, if property loans are to continue to be offered then it is important that they offer the opportunity to diversify between types of property, i.e. residential, commercial etc and between borrowers. Particular regard needs to be given to the number of lenders on the platform and their likely limit for any individual loan/ project. I would suggest that large projects that require tranche after tranche of funding are not really the way forward for the majority of lenders.
I am sure a good supply of new borrowers/ projects seeking up to £250k of funding with reasonable LTV, accurate valuations and demonstrable due diligence would be welcomed by lenders and enable Collateral to grow further.
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applets
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Unbolted (UB)
defaults
Aug 22, 2017 6:57:01 GMT
Post by applets on Aug 22, 2017 6:57:01 GMT
I was surprised by the level of defaults, but in the absence of statistics from other bricks and mortar pawn brokers it is difficult to know how this compares. The recovery process/ rate is, however, impressive.
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applets
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Post by applets on Aug 18, 2017 7:54:07 GMT
Just tried to book the hotel for next week and bookings are only available from 17th October. Is this going to go past term MT? You make reassuring noises about a second bank getting a valuation next week but that does not mean a thing given the glacial speed banks operate at. Is this hotel finishing on time or will tge initial bank take on the risk to completion? Term is 31/08/ 2018 so plenty of time to sort out bank finance.
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applets
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Post by applets on Aug 17, 2017 10:16:51 GMT
There have been a number of smaller loans over the last few weeks and this may be contributing to the problems you are having. It is also possible that there are now more lenders on the platform chasing these loans.
One of the advantages of Unbolted is the auto lend facility. I appreciate that this eliminates the freedom of choice for which loans to purchase and the amount, but you do end up getting a slice of all loans over about £1000. It also means that you do not have to keep checking your emails every few minutes!
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applets
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Post by applets on Aug 16, 2017 14:35:34 GMT
Afternoon, Re: Interest. Thanks very much for your comments on this one. On reflection some good points have been made as this is in fact a performing loan at the moment. Given that we have not placed the loan into default yet, we will continue to pay interest monthly as per the loan particulars. The loan particulars state the payment terms for a normal performing loan. Our T&C’s clearly state what happens in the event of default which is that interest is not paid monthly and will accrue. It is expected that this loan will be placed into default on the 20th September, when the loan reaches its term. I will update the loan particulars to reflect this.
Kind regards, Ed Thank you Ed. I know this inflicts more pain on you, but at least we can now be sure that MT honour the terms set out on the loan details page.
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applets
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Post by applets on Aug 16, 2017 13:02:54 GMT
I think we have to be realistic in our interest expectations for bling. It is a competitive market for borrowers and I doubt many will wish to pay a higher rate of interest than they need.
I fully appreciate that many will not wish to lend for less than the previous Collateral rate of 12%, but some will be prepared to accept a lower rate if the risk is commensurate. This new loan will be a good test of the demand. The bid limit lasts until 13:00. It expect it will be gone by 13:30 at the latest. I think it is fair to say that there is demand for 10% bling!
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applets
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Post by applets on Aug 16, 2017 10:02:48 GMT
Now sorted
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applets
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Post by applets on Aug 16, 2017 9:56:40 GMT
Morning. Yes, our interest ranks behind that of capital & interest of the lenders. Regards, Ed. Thanks MoneyThing . Final question from me Given this statement - "MoneyThing will provide interest to lenders on a monthly basis and collect interest at term. If the borrower does not pay the interest at term, then the loss of interest will be incurred by MoneyThing in this case." Why are we not getting paid interest up until the scheduled term date? Like you, I had taken this at face value and a part of the contractual agreement to lend on this loan. However, SteveT has pointed above to the MT terms and conditions which he presumably feels trumps any statement on the loan details page and actions that MT have taken to date. If the latter is the correct interpretation then it would imply that we cannot treat statements on the loan details page with any degree of certainty.
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applets
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Post by applets on Aug 16, 2017 8:13:34 GMT
In the absence of clarification from MT, we are still left wondering whether the loan has defaulted or not. Presumably, as the term date for the loan is 20/09 and MT have reconfirmed that the loan is to BO, there will only be a problem if BO do not repay MT lenders on that date. This would explain why MT allows the SM to continue for the loan. It is however unclear, and never has been clear, whether BO are not required to repay/ repay all the loan if the underlying borrower goes into administration and BO suffer a loss. If no such provision exists, and BO are on the hook, then the domino threat to other BO loans that georget mentions is very real.
As an aside, other than the prospect of a potential material loss, I wonder how MT is able to unilaterally decide not to continue paying interest monthly and switch to accrued interest. The information for this loan clearly states that MT will pay the interest monthly, collect the interest from the borrower (BO) at the term and accept the loss if the borrower does not pay the interest at term.
As lenders we have to decide on whether to lend based on the information that is presented to us, not on the basis of the terms of loan agreements that we do not see or the prospect of unilateral change to those that we do see. Although MT's Lender Terms & Conditions state the following: INTEREST PAYMENT AND REPAYMENT POLICY - You shall start to accrue interest once either a Loan you have made has been drawn down by a Borrower or you have been transferred a Loan by another Lender Member. The rate at which interest shall accrue shall be the rate contained in the relevant Loan Commitment. - We will receive from the Borrower directly to our Client Money Account payments in respect of interest and Repayments which are due to you in connection with the terms of any relevant Loan Contract. We will credit your nominated bank account promptly following receipt of such payments. - Interest will continue to accrue on a Loan even if the relevant Borrower defaults in making any relevant interest payments. However, you acknowledge we will not pay any interest or Repayments to you until we have received such payment from the relevant Borrower.Yes, but we were originally told that the borrower was BO who has not yet defaulted on the loan. Further, these general terms and conditions were presumably varied by the express provision on the loan details page that said that interest would be paid monthly by MT even though interest would not be collected from the borrower until term. Clearly, this statement should have been disregarded even though in practice interest has until now been paid by MT in advance of its receipt from the borrower as per the statement.
We have, however, now received "clarification" from Ed that although we were told that the borrower was Broadoak, the terms of the loan which we have not seen only provide for repayment if the underlying loan repays so at least the domino concern is put to bed.
Perhaps it would be helpful in future to see a draft of any proposed loan agreement. It would certainly save a lot of time for those on this platform who are kind enough to undertake DD and share it with the rest of us.
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