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Post by propman on Nov 16, 2018 14:37:30 GMT
Unless you are allowing substantial cash drag to achieve higher rates (on RS), I don't think early repayments should make too much difference. My worry on RS as expressed on the stats thread is that when the brown stuff hits the fan that they will reduce capital payments as well as stopping interest for a while to refloat the PF. If this coincided with high early repayments or defaults (if the capital repaid on these was similarly reduced) then this could crystallise a significant loss. This is why I try and manage early repayments by only lending in small chunks and trying to minimise the number of chunks going to the same borrower. The trouble is that the latter is virtually impossible in 1 year at least while lending a decent amount when rates are acceptable.
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Post by p2psavvy on Nov 23, 2018 18:14:32 GMT
Just checked my latest All Time Loan Book download and noticed that 76 of my 117 defaulted loans are now marked as settled. Apparently this means written off. Thats 6.1% of the total loans.
Thank you Zopa for giving up on getting back some of the £658.79 of my £984.56 of defaults!
67% of my total interest earned has now been lost to defaults. 48% now written off.
Zopa, the place for free money.
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benaj
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Post by benaj on Nov 23, 2018 19:22:34 GMT
Just checked my latest All Time Loan Book download and noticed that 76 of my 117 defaulted loans are now marked as settled. Apparently this means written off. Thats 6.1% of the total loans. Thank you Zopa for giving up on getting back some of the £658.79 of my £984.56 of defaults! 67% of my total interest earned has now been lost to defaults. 48% now written off. Zopa, the place for free money. I have noticed something new to in my All Time loan book. Today, I have 2.02% of my all time investment marked as "settled". I wonder if this has anything to do with the recent loan sale. Zopa explains "settled" state will be applied when a borrower is unable to repay in full, but, can repay a certain percentage of their debt with a lump sum on a loan marked as defaulted. 4 of my loans marked as "settled' have never repaid a penny, so I expect this is part of the loan sale they are talking about. However, I haven't received any lump sum yet. 
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aju
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Post by aju on Nov 24, 2018 0:19:14 GMT
Just checked my latest All Time Loan Book download and noticed that 76 of my 117 defaulted loans are now marked as settled. Apparently this means written off. Thats 6.1% of the total loans. Thank you Zopa for giving up on getting back some of the £658.79 of my £984.56 of defaults! 67% of my total interest earned has now been lost to defaults. 48% now written off. Zopa, the place for free money. I have noticed something new to in my All Time loan book. Today, I have 2.02% of my all time investment marked as "settled". I wonder if this has anything to do with the recent loan sale. Zopa explains "settled" state will be applied when a borrower is unable to repay in full, but, can repay a certain percentage of their debt with a lump sum on a loan marked as defaulted. 4 of my loans marked as "settled' have never repaid a penny, so I expect this is part of the loan sale they are talking about. However, I haven't received any lump sum yet. I've been a bit preoccupied of late, recently lending on RS (RateSetter) or rather learning the intricacies by reading on the RS forum how to game it, interesting it is too. When I got the Zopa email though I did wonder what my consolidated losses might be for my loans that have not paid a thing in the last few years. I had a weird "settled" item recently but that was an SG that went "Default" in error and was eventually corrected and repaid using "Settled" rather than "Closed". I'm actually waiting until the end of the month to do my reconciles on our 4 Zopa accounts. I'll see what's changed then. The email on the debt sale says loans still paying are not affected, when I do my reconciles I will be able to see when each of the affected loans most recent repayments were. I'm guessing that will bollox my usual expectation of 50% of defaults returned.
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Post by fuzzyiceberg on Nov 24, 2018 13:09:10 GMT
Zoipa has sold a load of defaulted loans which are then given the status settled. The (no doubt svery small) payment to us for those loans seems to lag the status change though...
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aju
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Post by aju on Nov 24, 2018 16:30:29 GMT
Well in my case "very small" payment equals exactly zero. I downloaded my all time loan book on the 22nd and again today 24th. In those 2 days 2/3rds of my "default" loans have now changed to "settled". I have just gone through the figures and no payments have been made. There has been no change to my loan book figures only the status has changed. So they appear to have sold 2/3rds of my defaulted loans for the princely sum of Zero. My email regarding this external Debt purchase/s has a paragraph as follows ... The said email was dated 22/11/2018 so I assume that means I may not get that until 6th. I've not checked my statements as yet to see if this might be a per loan settlement or just a one off payments. Like you I have more of my Defaults turning to settled than not and the sums are quite large that without any payment would seem to be crystalized into the numbers in my Alltime Loanbooks. I had a recent unusual entry in my statements last month that resembled only the loan_id and it took sometime to marry it up to the borrower_id we are more familiar with. This was a "Settled" SG loan that had originally gone "closed" but was still in "default" before it was "Settled" So its anybodies guess what these entries might take on. On another point, someone previously suggested Cabot may be a company Zopa will use. One of my recently settled loans has a comment that suggests it was already in Cabots hands from a while back. Not sure these comments help but for me rather than keep on looking I'll give it 2 weeks before I check this - although I may see this when I do my detailed reconciles at end of the the month. I have links in my loanbook spreadsheets that tell me when the last payments and amounts were made so I might see these at that time. Needless to say I'm expecting Zopa will be quite busy once these numbers come in as I think there is going to be quite a few of us annoyed about the size of the payments and the crystallization these might cause.
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trium
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Post by trium on Nov 28, 2018 23:51:25 GMT
Since all these loans have previously been written off for tax relief any recoveries will have to be "un-written-off" and should show up on the monthly earnings summary. Easier than wading through loanbooks/statements! Unless, of course, your existing stream of recoveries is so strong that you won't notice the extras  |
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aju
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Post by aju on Nov 29, 2018 0:17:41 GMT
Since all these loans have previously been written off for tax relief any recoveries will have to be "un-written-off" and should show up on the monthly earnings summary. Easier than wading through loanbooks/statements! Unless, of course, your existing stream of recoveries is so strong that you won't notice the extras Yeah I'm hoping its simple but I'm also hoping it will be quite a bit as there are a lot that went settled across each of our 2 accounts (4 in total). I don't actually wade through them all as I have built interconnected spreadsheets and can spot a last payment date and last payment amount once I've loaded up the loanbook and statements files for the month. All I have to do is filter on "Settled" items and a "last payment date" for this or next month and I'll see them, the amounts are easily counted then. That said loading this stuff up and integrating does take a little bit of effort and it hammers my CPU quite a bit but it works but as i do this on a monthly basis its integral anyway. One of the things my sheets do allow me to do is spot when Zopa has made errors and as I have said elsewhere the return on their cockups has far outweighed this years interest for our 4 accounts. It always pays to be able to spot data integrity errors in my view and there have been a few of late on Zopa. Not sure how to do this stuff on RS as yet but I bet they cock things up too. The other thing I'd like to do is be able to see what %age zopa has sold them for as well. I have already seen a settled that is still paying this months payments so that one need to be reviewed as to why its gone "settled".
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