rrrupert
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Post by rrrupert on Feb 23, 2018 20:26:53 GMT
^I am pretty sure VRs are paid by the platform
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Jeepers
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Post by Jeepers on Feb 23, 2018 20:30:09 GMT
Not sure about Lendy, but on MT WITH THE Scottish pubs there is a letter showing MT instructing the surveyor and itemising what they require.
It also stated that the surveyor should seek payment from the borrower before conducting the survey.
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mikes1531
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Post by mikes1531 on Feb 23, 2018 22:53:11 GMT
The problems with VR's will continue until they are paid for by the platform not the borrowers. If you pay for something you call the shots and get what you want.
But don't platforms want inflated values as well? That allows them to make bigger loans and earn bigger fees!
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elliotn
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Post by elliotn on Feb 24, 2018 2:22:15 GMT
Typical smoke and mirrors. Forget loans from years ago, here we are today in the here and now. Whilst you're here can we have a clear and concise update on DFL 5 ? Out of interest, in the 10% calculation, are you counting the garden centre and other 2 defaulted loans that resulted in a loss as repaid or defaulted ? I think it would be hard to count the garden centre as defaulted when as I remember all investors got their money back (and interest too?) One of their biggest defaults, expected 7 figs. PF made it whole although lenders losing money is not definition of a default.
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7d7
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Post by 7d7 on Feb 24, 2018 4:48:07 GMT
If you pay for something you call the shots and get what you want.
Not really. Mortgage valuations are arranged by the lender but paid for by the borrower. If the bank decides further inspection is required, the re-inspection fees are passed on to the borrower. The problem with P2P seems to be the process. I would like to see lenders involved in VR approvals via a voting system prior to loans going live. If majority of investors reject the report, the RICS valuer is forced to produce a viable version preferably at no further cost. Such scrutiny would encourage valuers to ensure they get it right at the first time of asking.
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stub8535
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Post by stub8535 on Feb 24, 2018 7:28:59 GMT
If you pay for something you call the shots and get what you want.
Not really. Mortgage valuations are arranged by the lender but paid for by the borrower. If the bank decides further inspection is required, the re-inspection fees are passed on to the borrower. The problem with P2P seems to be the process. I would like to see lenders involved in VR approvals via a voting system prior to loans going live. If majority of investors reject the report, the RICS valuer is forced to produce a viable version preferably at no further cost. Such scrutiny would encourage valuers to ensure they get it right at the first time of asking. interesting way of looking at valuations. It would be down to the platform to pick the valuation report apart for errors including the numbers. The platform should pick up issue round titles and borrower supplied documents used by the valuer. All this needs to be done before they loan is presented to lenders for funding. Tighter letters of engagement terms are needed in many cases. Borrower should be remote from, but pay for, the valuation and searches also the loan required should not be communicated to the valuers. There is a train of thought that local agents need to be used as they know their market best. Except for country differences between the processes and procedures for ownership Scotland, Northern Ireland and Isle of Man I think this would produce minor improvements. For monitoring of projects the use of local experts who could go to site easily and physically check progress would be good. We would not have Whitehaven issue if the monitoring people had been going to site even before tranches drew down. Some high profile action against surveyors for incorrectly pricing a project may, like in the last downturn, focus their minds to being more conservative.
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Post by brightspark on Feb 24, 2018 9:07:12 GMT
If lenders were able to deal in active loans at other than par would much of the criticism be ameliorated?
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rocky1
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Post by rocky1 on Feb 24, 2018 9:17:41 GMT
LENDYS trustpilot latest reviews of mostly 1 STAR seems to have got some one off their backside at lendy hq and requesting reviewers to contact them with their concerns i personally contacted them and told them not to bother with the computer generated reply of you know the risks and all the other drivil that comes with it. it is worth taking a look and see most of LENDYS replies to genuine lenders concerns and may be adding your own feelings as some one from LENDY is looking at them
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Jeepers
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Post by Jeepers on Feb 24, 2018 10:41:39 GMT
I'm quite annoyed by this misleading 10% figure, you can't include historic repaid loans in the loan book.
That's like me selling all my good loans and says 100% of my loans have defaulted!
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sarahcount
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Post by sarahcount on Feb 24, 2018 10:52:08 GMT
I also suspect that the historic loan repayments figure includes loans that went live on the platform fully funded but then got repaid almost immediately as the deal got cancelled for whatever reason. The hotel in Cornwall being the latest example. But also Hartlepool, Bramley etc.
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stub8535
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Post by stub8535 on Feb 24, 2018 10:54:35 GMT
If lenders were able to deal in active loans at other than par would much of the criticism be ameliorated? No brightspark dealing in crxp loans brought to platform with wrong valuations will not solve the problem of bad valuations. It would, to a limit, give unfortunate holders the chance to sell to less well informed "investors" and these people take the hit. Far better to solve the problem than fudge a solution. If well researched and correctly valued properties are put to lenders then, over time, and to a limit we should see defaults reduce. S
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mikes1531
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Post by mikes1531 on Feb 24, 2018 13:50:00 GMT
I also suspect that the historic loan repayments figure includes loans that went live on the platform fully funded but then got repaid almost immediately as the deal got cancelled for whatever reason. The hotel in Cornwall being the latest example. But also Hartlepool, Bramley etc. I suspect that is the case too. And what about PBLs that were replaced with DFLs? I suspect those are included as 'repaid' even though investors in those never received any of the 'repayment' because their investment was rolled forward into the DFL.
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Post by da2279 on Feb 27, 2018 11:27:36 GMT
So this is how L calculate their idea of defaults |
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mary
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Post by mary on Feb 27, 2018 11:33:56 GMT
Or, of the current loans, 35% are defaulted or overdue. Not good.
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Post by brightspark on Feb 27, 2018 12:20:38 GMT
If lenders were able to deal in active loans at other than par would much of the criticism be ameliorated? No brightspark dealing in crxp loans brought to platform with wrong valuations will not solve the problem of bad valuations. It would, to a limit, give unfortunate holders the chance to sell to less well informed "investors" and these people take the hit. Far better to solve the problem than fudge a solution. If well researched and correctly valued properties are put to lenders then, over time, and to a limit we should see defaults reduce. S Inappropriate valuations is one issue that needs to be addressed but there are many other reasons why investors may not want to stay in loans for their duration. Currently investors can become trapped once the secondary market overloads which is very easy as without variable pricing it has no flexibiliity. The fear factor then comes into play to over-ride other rational arguments.
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