kermie
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Post by kermie on Aug 28, 2014 7:59:39 GMT
Whilst I have not bid on this one (will just wait for AM), the LTV reduction did prompt me to actually read the credit report and consider this one, and I suspect I will stick a small amount into this in due course. I suspect it has had a similar effect to help get some bidders (notwithstanding there now seems like a lot more underwriting available now too). Can I ask what makes you feel there's a lot more u/wing available now? Sorry, I wasn't very clear at all - I just meant that this particular loan now has a lot of underwriting available for it. My impression is still that underwriters have more money than they'd like tied up in old Live loans and hence not available to commit to new loans.
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Post by Ton ⓉⓞⓃ on Aug 28, 2014 8:49:00 GMT
Can I ask what makes you feel there's a lot more u/wing available now? Sorry, I wasn't very clear at all - I just meant that this particular loan now has a lot of underwriting available for it. My impression is still that underwriters have more money than they'd like tied up in old Live loans and hence not available to commit to new loans. That's interesting, what you say being true, must mean; that underwriters can't suffer dead-time or the commitment fee is generous enough to negate it or it's a daily fee. I hadn't thought about it or realized that til now. The u/wers must go in rotation, or have equal standing in loans.
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Post by Ton ⓉⓞⓃ on Oct 31, 2014 12:13:28 GMT
davidricketts1 can we have drawdown update here I think it may've got missed. IN EDIT I know it's already yielding almost full rate
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baldpate
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Post by baldpate on Nov 11, 2014 10:47:13 GMT
The drawdown update on 5/11 said:
"Interest continues to accrue to lenders in line with the previous update.
As expected, security is taking longer to complete than hoped. Borrower is now seeking alternative property to replace the charge from the pension fund property. They are still keen for loan to go ahead as it will help their growth but we do not have a definitive drawdown date as yet."
It's now about 2-1/2 months since the loan closed, and the tone of this update doesn't give me the impression that we are anywhere near drawdown. I'm beginning to wonder if the borrower is really committed to this loan. Suppose they decide not to proceed after all - what happens about the interim interest which has been accrueing since last month? I presume it is deducted from the loan amount at drawdown, so won't be paid if the loan does not proceed. Can anyone confirm that/comment, please?
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j
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Post by j on Nov 11, 2014 13:28:12 GMT
The drawdown update on 5/11 said: "Interest continues to accrue to lenders in line with the previous update.
As expected, security is taking longer to complete than hoped. Borrower is now seeking alternative property to replace the charge from the pension fund property. They are still keen for loan to go ahead as it will help their growth but we do not have a definitive drawdown date as yet."It's now about 2-1/2 months since the loan closed, and the tone of this update doesn't give me the impression that we are anywhere near drawdown. I'm beginning to wonder if the borrower is really committed to this loan. Suppose they decide not to proceed after all - what happens about the interim interest which has been accrueing since last month? I presume it is deducted from the loan amount at drawdown, so won't be paid if the loan does not proceed. Can anyone confirm that/comment, please? I sat this one out at the time & have a small AI order on the sideline but, feel sympathy for those who already committed funds in case they do not get any payment if loan falls away
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oldgrumpy
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Post by oldgrumpy on Nov 11, 2014 13:32:27 GMT
Borrowers who do this should be compelled to pay the ongoing interest monthly once the rate is agreed, (as a condition of keeping the loan open) not wait for whether or not the loan goes through.
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bugs4me
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Post by bugs4me on Nov 11, 2014 14:21:47 GMT
Borrowers who do this should be compelled to pay the ongoing interest monthly once the rate is agreed, (as a condition of keeping the loan open) not wait for whether or not the loan goes through. This point has been kicked around for goodness knows how long. Am I being cynical or do borrowers then use the 'piece of paper' from AC to hawk the deal around - looking for greener pastures. IIRC, even if the (prospective) borrower has agreed in the past to recompense lenders when the deal did not go ahead, actually getting the compensation from them has been totally another story.
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Post by Ton ⓉⓞⓃ on Nov 11, 2014 16:09:22 GMT
Borrowers who do this should be compelled to pay the ongoing interest monthly once the rate is agreed, (as a condition of keeping the loan open) not wait for whether or not the loan goes through. This point has been kicked around for goodness knows how long. Am I being cynical or do borrowers then use the 'piece of paper' from AC to hawk the deal around - looking for greener pastures. IIRC, even if the (prospective) borrower has agreed in the past to recompense lenders when the deal did not go ahead, actually getting the compensation from them has been totally another story. They did originally ask for a bigger sum, but we scaled it back. So it's possible. The reason for delay sounds believable.
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mikeb
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Post by mikeb on Nov 11, 2014 19:22:21 GMT
IIRC, even if the (prospective) borrower has agreed in the past to recompense lenders when the deal did not go ahead, actually getting the compensation from them has been totally another story. We were told that AC are chasing these through legal action for loans where the loan failed to materialise -- there's a few of them rattling about in the cupboard marked "Skeletons" 
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mikes1531
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Post by mikes1531 on Nov 12, 2014 15:41:39 GMT
IIRC, even if the (prospective) borrower has agreed in the past to recompense lenders when the deal did not go ahead, actually getting the compensation from them has been totally another story. We were told that AC are chasing these through legal action for loans where the loan failed to materialise -- there's a few of them rattling about in the cupboard marked "Skeletons" This just re-emphasises the need to have -- in writing -- the commitment from the borrower to pay the fee for holding the loan funding available. If the loan falls through, and there's any chance they can avoid paying the fee they'll try that. So the paperwork for that needs to be as watertight as the paperwork supporting the security for loans that proceed. The best way to convince people to pay what they owe is when they are convinced that they'd lose a court case and have to pay legal costs as well if they fail to pay. AC don't seem to have accomplished this yet, judging by the lack of success so far in attempting to recover these payments.
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Post by Ton ⓉⓞⓃ on Nov 12, 2014 15:46:12 GMT
We were told that AC are chasing these through legal action for loans where the loan failed to materialise -- there's a few of them rattling about in the cupboard marked "Skeletons" This just re-emphasises the need to have -- in writing -- the commitment from the borrower to pay the fee for holding the loan funding available. If the loan falls through, and there's any chance they can avoid paying the fee they'll try that. So the paperwork for that needs to be as watertight as the paperwork supporting the security for loans that proceed. The best way to convince people to pay what they owe is when they are convinced that they'd lose a court case and have to pay legal costs as well if they fail to pay. AC don't seem to have accomplished this yet, judging by the lack of success so far in attempting to recover these payments. What is the corresponding situation with the Banks. I wonder how often they get hit by this? Is there a feeling that quotes for loans are free... despite the fact that hundreds or even thousands might've been spent to get that 'quote'
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pikestaff
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Post by pikestaff on Nov 12, 2014 16:07:35 GMT
If drawdown is protracted enough I would expect a bank to be charging a commitment fee on a periodic basis, not rolling it up and hoping the customer draws down. If the commitment fee is not paid the offer is withdrawn. I understand that the rate for a commitment fee is typically 50% of the loan rate.
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mikes1531
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Post by mikes1531 on Nov 12, 2014 18:24:54 GMT
What is the corresponding situation with the Banks. This is based on nothing, but I would would expect that when a bank makes a loan offer, personal or business, secured or unsecured, they would state that the offer was valid only for a specified period. Depending on the situation it could be quite short -- a week or two? -- or longer for something like a mortgage where it is known that exchanges/completions take a while to organise -- maybe a couple of months? If the borrower hasn't committed to the loan by the time the period is up then I'd expect the bank to charge a fee to keep the offer open. I suppose the critical question is whether the extension fee is payable in advance of the extension being granted, or whether it can be deferred and paid at the time the loan actually is made. If it turns out to be the latter, then the banks could have a similar problem collecting as AC are having. But perhaps borrowers might be more inclined to pay a bill demanded by a big, bad, bank than they would to pay one from a small upstart like AC.
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pikestaff
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Post by pikestaff on Dec 1, 2014 22:38:23 GMT
Update received today, to the effect that the loan (#124) is being reverted to preview tomorrow - at which point I will be cancelling my shadow bid.
Further details are on the site for those with access. Given the legal bit at the bottom of the email I'm not quoting here, but I'm not optimistic that we shall ever see the pre-drawdown interest.
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