Lendy about to fail?

Written with tongue firmly in cheek?

I live for the day when a big DFL repays. I've been saying it for a year now. And the cement pit on a refinance...wow. Excuse my scepticism but I'm not holding my breath. Anyway all the good news should have arrived by the middle of April so it could be a party atmosphere on here by then in the Lendy section.

And of course the Lendy Cowes Week in the summer for us to look forward to.

If one morning I was to wake up and discover that a platform had disappeared mysteriously overnight then I'd be least surprised if that was the Ly boys
(my 2nd guess would have been Coll)
Not really seeing these green shoots of recovery leading to an honest and reliable platform that others seem to want to see tbh.

If the remaining dfl repays - and it sounds an absolute certainty mmm - then apart from another completed dfl which got used for something else then I'll be out completely and they can go on their merry way being the biggest cash cow in the p2p universe

I seem to recall that one of my all-time favourite authors, J P Donleavy, experimented with the omission of capitals at the start of sentences (I don't remember him dispensing with spaces) in his very first novel, The Ginger Man. But that, despite being intensly annoying, wasn't the reason for the work being banned in Ireland and the US.

In subsequent work, he reverted to the more standard convention which, rocky1 , apart from being far a less stressful experience for the reader also appeared have no adverse effect on a successful literary career.

I'm beginning to wonder whether some competent administrators mightn't make a better job of dealing with the Lendy problem loans. At least they would be able to be truly tough on the borrowers, as they would not need to worry about their future reputation as a lender. In fact, I guess they would have to worry about their reputation as an administrator and so would have an extra incentive to extract all the money from borrowers that they could.

I don't really think that what is said on this platform or even in Trust Pilot will be the deciding factor in whether Lendy fails or succeeds, and it seems a bit harsh for people who express negative views to be told to shut up. Freedom of speech and all that. Even if it was a deciding factor, surely it's an altruistic act to warn off new and naive investors before they end up in the kind of trouble that many of us are in.

About interest and fees paid to Lendy and to us - it's worth realising that this is added to the loan in the same way that mortgage arrangement fees get added to the value of a mortgage. So Lendy's fees for arranging the loan are paid by us initially, not by the borrower, and the interest that we are paid over the course of the loan is also simply a repayment of our own money. It's only when the loan repays that the borrower has to actually cough up anything at all, and it's a heck of a lot more than Lendy handed over to them when the loan was drawn down. Given this it's not such a surprise that they often can't repay. All would be well at this point, except that then the valuation turns out to be a load of c**p and the property ends up auctioned off for a pittance. I hope Lendy are right that they will be able to get some more money off the borrowers, but here again, I'm starting to wonder whether calling in some experienced professionals (aka administrators) to chase those missing sums might not be more effective than having Lendy do it.

Anyway, either Lendy will fail or it won't. I personally don't believe the failure of Lendy as a platform could create a scenario that is much worse than what we have today, and quite possibly it may turn out to be better.

How do you know that they lost trust of the majority of investors? Just because there are some people complaining here? And complaining about what exactly? That there was a risk in investing via Lendy and the 12% interest weren´t just a free meal? That it is not guaranteed to exit any time via the secondary market because it relies on supply and demand? That some valuations of complex loans are too optimistic? That there are some delays with some loans/borrowers? Sorry but most complains here are just ridiculous because the issues are inherent in the system of property briding/development loans or p2p loans in general and if someone blames Lendy for it, it just shows how little they understood in what they invested...

But your second point - the funding of existing development loans - is a real concern, especially if there is so much agitation against Lendy going on here. Lendy proved in the past that they can value property correctly and also that they can recover debts quite well. Furthermore, they have a very profitable business model and therefore I think there is still enough air in the interest spread to offer cashback etc. to attract lenders into existing development loans, if needed, until the sentiment about Lendy changes again.

What debts have been recovered well, the garden center? Which properties have been valued correctly? Any of those overdue or in default? I think not, if they were then it would be a fairly painless process to recover the full amount outstanding.

No one is complaining about the risk, people are pi$$ed at the completely incorrect valuations, in some cases so far off that they may have been scrawled by a 5 year old, and that a repayment for dfl 05 has been completely misappropriated, so yes, any one with a bean in dfl 05 has zero trust in Lendy, which is likely to be a high percentage of investors. What they have done is simply outrageous.