trouble
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Post by trouble on Nov 30, 2017 21:14:34 GMT
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mikes1531
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Post by mikes1531 on Dec 1, 2017 22:19:41 GMT
I find it interesting that AC will make announcements to the media without making those same announcements to their investors.
Or have I missed some emails from AC?
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teddy
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Post by teddy on Dec 3, 2017 19:19:58 GMT
Well, for those of us who've lent to it, AC are at least £400k in the hole on one loan that's got very little chance of seeing any repayments.
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agent69
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Post by agent69 on Dec 3, 2017 20:08:32 GMT
Well, for those of us who've lent to it, AC are at least £400k in the hole on one loan that's got very little chance of seeing any repayments. Are you suggesting £400k total shortage on repayments, or just on the packaged accounts (with MLIA taking a further hit)?
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teddy
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Post by teddy on Dec 3, 2017 20:58:38 GMT
Don't quite understand the question, but rough figures off the top of my head are a loan of about £1.2m, with a property used as security. Property grossly overvalued to the tune of about £600K. After making some repayments, borrower has declared bankruptcy and done a runner. Capital loss to AC is around £400K as it stands.
That's the general gist of it, at least as I understand it.
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agent69
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Post by agent69 on Dec 3, 2017 21:31:03 GMT
Don't quite understand the question, but rough figures off the top of my head are a loan of about £1.2m, with a property used as security. Property grossly overvalued to the tune of about £600K. After making some repayments, borrower has declared bankruptcy and done a runner. Capital loss to AC is around £400K as it stands. That's the general gist of it, at least as I understand it. So the £400k is split between what AC will have to cough up for via the PF, and MLIA investors who will jut have to take it on the chin
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ashtondav
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Post by ashtondav on Dec 4, 2017 9:37:00 GMT
Er, surely not. The PF coughs up the loss and distributes it to lenders, presumably in the form of monthly capital and interest payments as per the original schedule. Or have I misunderstood the AC PF?
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bugs4me
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Post by bugs4me on Dec 4, 2017 10:00:24 GMT
Probably out of touch here as I no longer actively invest via MLIA but I do have a couple of IMO defaults.
AFAIK, the PF only comes into play, if at all as it is discretionary, if or when AC formally declare a default. As they seem to have a habit of kicking overdue loans into the long grass, irrespective as any prospect of further recoveries, then a formal default is not declared.
Stand to be corrected over this quick summing up.
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SteveT
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Post by SteveT on Dec 4, 2017 10:46:31 GMT
Er, surely not. The PF coughs up the loss and distributes it to lenders, presumably in the form of monthly capital and interest payments as per the original schedule. Or have I misunderstood the AC PF? There is no PF backing for MLIA lenders. That’s why they receive the full headline rate of interest.
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niceguy37
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Post by niceguy37 on Dec 4, 2017 11:27:39 GMT
Sceptic that I am, my first thought was to take 4th Way's reporting with even more of a pinch of salt. But hopefully the PF will pay out at least once so we can see what actually happens.
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mikes1531
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Post by mikes1531 on Dec 4, 2017 18:06:40 GMT
Er, surely not. The PF coughs up the loss and distributes it to lenders, presumably in the form of monthly capital and interest payments as per the original schedule. Or have I misunderstood the AC PF? There is no PF backing for MLIA lenders. That’s why they receive the full headline rate of interest. Furthermore, where non-performing loans are held within PF-protected accounts (such as GBBA and GEIA), the PF is not used to make up for monthly payments not received from borrowers. AIUI, the PF won't be called into action until AC decide a loan has no further prospect of repayment. The PF trustees could change their policy on payouts at any time, but this seems to be the way they've been operating so far. As a result, the PF has made no payouts yet AFAIK. That's why the 4th Way article has generated so much comment.
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jlend
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Post by jlend on Dec 13, 2017 7:36:15 GMT
That's interesting I did wonder if the PF paid out regularly to cover late interest payments in PF protected accounts as I saw this on the website
"The Provision Fund is designed to cover;
* Payment delays of interest from a borrower where that sum arrives later than expected
* Shortfalls in interest received from a borrower"
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jonah
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Post by jonah on Dec 13, 2017 10:07:35 GMT
That's interesting I did wonder if the PF paid out regularly to cover late interest payments in PF protected accounts as I saw this on the website "The Provision Fund is designed to cover; * Payment delays of interest from a borrower where that sum arrives later than expected * Shortfalls in interest received from a borrower" I had similar thoughts originally. It could be that eventually it does cover the interest but not real world examples yet exist! It definitely doesn’t work like RS and buy defaulted loan parts of you or pay interim interest payments.
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jlend
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Post by jlend on Dec 13, 2017 10:36:04 GMT
That's interesting I did wonder if the PF paid out regularly to cover late interest payments in PF protected accounts as I saw this on the website "The Provision Fund is designed to cover; * Payment delays of interest from a borrower where that sum arrives later than expected * Shortfalls in interest received from a borrower" I had similar thoughts originally. It could be that eventually it does cover the interest but not real world examples yet exist! It definitely doesn’t work like RS and buy defaulted loan parts of you or pay interim interest payments. Interesting. Did you ever find any wording on the website regarding the timing of interest payments from the PF? All I could find on interest payments was the above statement. Thanks
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jonah
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Post by jonah on Dec 13, 2017 11:22:50 GMT
I had similar thoughts originally. It could be that eventually it does cover the interest but not real world examples yet exist! It definitely doesn’t work like RS and buy defaulted loan parts of you or pay interim interest payments. Interesting. Did you ever find any wording on the website regarding the timing of interest payments from the PF? All I could find on interest payments was the above statement. Thanks No, nothing on the site. There are some comments by stuartassetzcapital on here though about the cost of running it like RS being too high and that some new wording / details on the working coming soon. Personally, such clarity would be great, ideally before the isa goes live as I want to judge how much to invest that way.
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