Post by Liz on Apr 3, 2018 13:33:56 GMT
Apr 3, 2018 9:57:36 GMT zedi said:
Apr 3, 2018 7:42:30 GMT Liz said:
And when was the last time the PF actually paid out?As the loan book enviably shrinks, so will the PF. The fact that L can take money out of the PF despite all of the defaults and pending losses, devalues the PF.
At the moment the PF is no more than a marketing tool to the potential and new naive customers.
And in that particular case, the valuation was £1.785m and the property sold for £1m at auction, while the borrower still has assets of approximately £200k which Lendy tries to recover now.
The PF has never been an insurance against losses and this has been made more than clear by Lendy. It is a nice feature for smoothening returns, nothing more and for that purpose it did a great job. One musst be very naive to rely on a provision fund of 2-4% of Outstanding loanbook. But still, for single defaults it could be a safety net and that was exactly my point: If you know that there is enough money in the PF right now, why shouldn´t you vote for sell at any price? I can only imagine that Lendy will then decide to make use of the word "discretionary", otherwise I cannot see how this is going to work...
Good luck if you think the PF will payout in full here 😄
