mikes1531
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Post by mikes1531 on Sept 5, 2014 16:06:46 GMT
Pre-bids plus underwriting total £4446 less than the £100k requested. Presuming that the underwriter amount is the same as it was before the reversion, then it would appear that £4446 of bids have been withdrawn. Pre-bids are now down to 75% of the total and underwriter bids up to 22%. (IIRC, u/w bids were about 8% when I looked yesterday.) I expect that means that more pre-bids have been cancelled. However, there have been reports of an AI bug -- since fixed -- that doubled some lenders' pre-bids during the reversion process. Correction of those could make conclusions of what's happening dubious. Then again, I think this loan probably had needed no underwriting at all when the auction closed. (It had 89% uptake with two days to go.) Have AC ever stated the what the impact of such a reversion is on the delayed drawdown interest that had been accruing? In this case, 4% interest has been accruing since 18/Aug. If the loan falls apart completely, then I expect the promised interest probably will evaporate. But if the deal eventually does go ahead, do lenders who have now withdrawn their bids still remain entitled to the promised interest? I've raised this issue in the thread for this loan. Hopefully that will produce a policy statement from AC.
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Post by Ton ⓉⓞⓃ on Sept 5, 2014 17:03:13 GMT
Then again, I think this loan probably had needed no underwriting at all when the auction closed. (It had 89% uptake with two days to go.) It turns out this was 91% Lender full with just 9%u/w. So just short of 100%, perhaps coz' of the rate.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 5, 2014 17:07:47 GMT
Pre-bids plus underwriting total £4446 less than the £100k requested. Presuming that the underwriter amount is the same as it was before the reversion, then it would appear that £4446 of bids have been withdrawn. Pre-bids are now down to 75% of the total and underwriter bids up to 22%. (IIRC, u/w bids were about 8% when I looked yesterday.) I expect that means that more pre-bids have been cancelled. However, there have been reports of an AI bug -- since fixed -- that doubled some lenders' pre-bids during the reversion process. Correction of those could make conclusions of what's happening dubious. Then again, I think this loan probably had needed no underwriting at all when the auction closed. (It had 89% uptake with two days to go.) Have AC ever stated the what the impact of such a reversion is on the delayed drawdown interest that had been accruing? In this case, 4% interest has been accruing since 18/Aug. If the loan falls apart completely, then I expect the promised interest probably will evaporate. But if the deal eventually does go ahead, do lenders who have now withdrawn their bids still remain entitled to the promised interest? Similiar situation to this question raised on the Q&A I suspect p2pindependentforum.com/post/20349 In the contract but dependent on recovery.
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mikes1531
Member of DD Central
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Post by mikes1531 on Sept 5, 2014 22:07:00 GMT
Thanks for the link. I'm not familiar with all the details of the HW deal. If AC were prepared to make the loan and the borrower decided not to proceed, then it seems clear that the borrower is liable to pay those fees. The current (LSB) case would be different if it turns out that the security defect can't be cured because in that situation it would be AC that wouldn't want to proceed and therefore would pull the plug on the deal. Would the borrower be liable to the fees in that case? Hmmm. If I were AC, I think I'd save the cost of bringing in the lawyers and pay the £200 out of my own pocket to keep my lenders happy.
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Post by Ton ⓉⓞⓃ on Sept 18, 2014 11:56:27 GMT
The Stourbridge Development (56) has new info. I think they're saying an update is coming but it might be delayed a couple of weeks to coincide with a drawdown update. Can someone confirm my understanding of it? I think it might be useful to have a thread that highlights to Lenders anything interesting/useful that appears on the 'Recent Activity' tabs on any of the loans. When the New Site kicks off this may become redundant or perhaps I'll rename it, if that's okay. Reading/looking through the Monitoring Surveyors (MS) report it's looking like an extension or re-negotiation is going to be needed. I've just started a Private thread on this.
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