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Post by jcams11 on Jun 25, 2018 8:46:34 GMT
Thanks for your comment. What is MLA ?
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cb25
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Post by cb25 on Jun 25, 2018 8:48:52 GMT
Thanks for your comment. What is MLA ? Manual Lending Account
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Post by stuartassetzcapital on Jun 25, 2018 10:25:47 GMT
It would be a useful improvement if Assetz could introduce an amendment to indicate where loans were substantially connected to the same borrower, as in the case of the I** loans. This to include where the "Controlling Mind" behind SPV companies is effectively the same, or where one loan substantially depended on the successful outcome of another. Limits on funds using GBBA-type rules should be with reference to this. This would help prevent what has happened to jcams11 (and others).
Personally, I stick with MLA, and try to avoid the situation in this way.
This is underway.
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Post by stuartassetzcapital on Jun 25, 2018 10:28:00 GMT
This is highly misleading to readers. If you wish to make these statements please can you give precise and current examples. Our loan status and default policy is quite probably the tightest in the industry and well defined on our website. Since you ask: The following loans, made to a single borrower totaling some £4.4M, were suspended ~June 2017. In the intervening 12 months, AC have not started any formal recovery process. #440 I** #439 I** #438 I** #437 I** Thanks for the reply. Yes, I've mentioned this in some other posts, sometimes the quickest way to destroy value is to put a loan into a formal recovery process. If there is deep equity in a defaulted loan i.e. the value of the asset safely well exceeds the loan and there are also no difficulties expected in getting a simple and quick sale then yes a formal process makes sense. But when it is a difficult recovery in some way, such as these and some others and requires help in some way then we have sometimes managed that in house under the lender vote regime. The ones you mention for example have an email going out shortly with a proposition that has resulted from intense work carried out by our staff. It is considered very unlikely this proposal for lenders to consider would have transpired if the loans had been put into a formal process. We are definitely not going to suggest accelerating a formal process if there are credible alternatives to better value recovery without that step. It wouldn't change how we categorise a loan in terms of being 'defaulted' or not though. Also the suspension was January 18, not June last year and we have been working intensely on these recoveries since then. So no, a formal recovery process having not started isn't an indicator of us not doing something, probably the opposite. We have also developed over time an intense loan review process for loans with higher potential risk of issues arising, even if they haven't arisen as yet and may never do. This is a loan strategy review process where we regularly sit down and progress a detailed written strategy on how best to mitigate risks on those loans and seek to achieve good outcomes for our investors. It's all part of our processes.
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bg
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Post by bg on Jun 25, 2018 10:52:25 GMT
Wouldn't it be sensible to put in some sort of maximum exposure to any one loan setting in the lending options. That way people can set at 1%, 3%, 5%, 20% or whatever they wish.
Of course setting this at 1% could potentially mean it takes a long time to get funds lent, but surely this is better than an inexperienced investor suddenly getting the shock that a large chunk of their funds is now in a suspended/defaulted loan?
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Post by stuartassetzcapital on Jun 25, 2018 11:31:13 GMT
Wouldn't it be sensible to put in some sort of maximum exposure to any one loan setting in the lending options. That way people can set at 1%, 3%, 5%, 20% or whatever they wish. Of course setting this at 1% could potentially mean it takes a long time to get funds lent, but surely this is better than an inexperienced investor suddenly getting the shock that a large chunk of their funds is now in a suspended/defaulted loan? Yes, setting your own cap on loan holdings as a percentage of your investment is to be a feature in the new MLA marketplace to be released shortly when setting up bespoke investment instructions in that new marketplace.
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bg
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Post by bg on Jun 25, 2018 11:38:56 GMT
Wouldn't it be sensible to put in some sort of maximum exposure to any one loan setting in the lending options. That way people can set at 1%, 3%, 5%, 20% or whatever they wish. Of course setting this at 1% could potentially mean it takes a long time to get funds lent, but surely this is better than an inexperienced investor suddenly getting the shock that a large chunk of their funds is now in a suspended/defaulted loan? Yes, setting your own cap on loan holdings as a percentage of your investment is to be a feature in the new MLA marketplace to be released shortly when setting up bespoke investment instructions in that new marketplace. I didn't mean MLA, I meant GBBA etc (where I think the current limit is automatically set at 20%?). I think the guy complaining earlier in the thread that 437-440 have taken £14k of his £23k investment must be in the GBBA. The account may well be operating precisely as designed and set out in the terms but he has clearly invested in something he thinks is simple and will give him good diversification but clearly hasn't.
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happy
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Post by happy on Jun 25, 2018 11:40:13 GMT
Wouldn't it be sensible to put in some sort of maximum exposure to any one loan setting in the lending options. That way people can set at 1%, 3%, 5%, 20% or whatever they wish. Of course setting this at 1% could potentially mean it takes a long time to get funds lent, but surely this is better than an inexperienced investor suddenly getting the shock that a large chunk of their funds is now in a suspended/defaulted loan? Agree bg. I did ask if this improvement could be added to the auto accounts a year or so ago as I suspect it would be fairly easy to code into the buying process but it was never taken up by AC. As it stands20% may be ok for someone investing say a few thousand or so but it is totally inapproriate if you are investing 5 or 6 figure sums. Even if this limit was not sensitive to someone selling a percentage of their holding it would at least allow lenders to have some control on their initial per-loan investment. With the new balancing procesz wofking this would help this to some degree
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Post by stuartassetzcapital on Jun 25, 2018 11:44:12 GMT
Yes, setting your own cap on loan holdings as a percentage of your investment is to be a feature in the new MLA marketplace to be released shortly when setting up bespoke investment instructions in that new marketplace. I didn't mean MLA, I meant GBBA etc (where I think the current limit is automatically set at 20%?). I think the guy complaining earlier in the thread that 437-440 have taken £14k of his £23k investment must be in the GBBA. The account may well be operating precisely as designed and set out in the terms but he has clearly invested in something he thinks is simple and will give him good diversification but clearly hasn't. There is no plan to change the current target 20% per loan or less - that’s why we are introducing a customisable feature on the MLA shortly as above.
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bg
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Post by bg on Jun 25, 2018 11:47:43 GMT
I didn't mean MLA, I meant GBBA etc (where I think the current limit is automatically set at 20%?). I think the guy complaining earlier in the thread that 437-440 have taken £14k of his £23k investment must be in the GBBA. The account may well be operating precisely as designed and set out in the terms but he has clearly invested in something he thinks is simple and will give him good diversification but clearly hasn't. There is no plan to change the current target 20% per loan or less - that’s why we are introducing a customisable feature on the MLA shortly as above. I think the majority of the new money flooding onto the platform is people looking for a simple, no frills click and leave account. For me letting these people build up a 20% exposure to one individual loan is at best dangerous. I can understand why it is causing complaints. They won't be interested in using the MLA (and I can't really see why the MLA needs this feature as by its nature loan targets are set manually).
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Post by jcams11 on Jun 25, 2018 11:59:01 GMT
Hi. No it was the green energy account. Wind farms. Had an complaint answered that AC saw nothing wrong with the way my money was lent out. I am completely out of this. There are other loans defaulting. I am withdrawing all the remnants of my money but its coming out so slowly. Can I sell loans ? I don't see the facility on AC. Can do easily with zopa. Cheers.
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bg
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Post by bg on Jun 25, 2018 12:02:48 GMT
Hi. No it was the green energy account. Wind farms. Had an complaint answered that AC saw nothing wrong with the way my money was lent out. I am completely out of this. There are other loans defaulting. I am withdrawing all the remnants of my money but its coming out so slowly. Can I sell loans ? I don't see the facility on AC. Can do easily with zopa. Cheers. If you have clicked withdraw then all your units will be up for sale. The issue is, you need someone to buy them for you to get the cash back. Anything that is suspended you are not able to sell.
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Post by stuartassetzcapital on Jun 25, 2018 12:13:54 GMT
There is no plan to change the current target 20% per loan or less - that’s why we are introducing a customisable feature on the MLA shortly as above. I think the majority of the new money flooding onto the platform is people looking for a simple, no frills click and leave account. For me letting these people build up a 20% exposure to one individual loan is at best dangerous. I can understand why it is causing complaints. They won't be interested in using the MLA (and I can't really see why the MLA needs this feature as by its nature loan targets are set manually). The investment accounts available for investment today, Quick Access Account, 30 Day Access Account, Property Secured Account and Great British Business Account Series 2 all have substantial diversification, far better than the 20% targeted and are expected to continue so. Indeed we are planning to realease a diversification drill down report on each account shortly to allow people to confirm this. The GBBA1, which is now unavailable, did have some poor diversification at times but it operated in line with its documented approach detailed on the website in its investment mandate. Similarly with the now closed GEA, principally because of the slow loan flow following government subsidies falling. The Access accounts have by far the widest diversification and have several hundred loans within them.
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Post by jcams11 on Jun 25, 2018 12:17:31 GMT
Is it sensible for someone to lose 60% of their money minus whatever recovery is scraped together and keep with the same company. I don't think so.
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SteveT
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Post by SteveT on Jun 25, 2018 14:10:35 GMT
Is it sensible for someone to lose 60% of their money minus whatever recovery is scraped together and keep with the same company. I don't think so. This may sound harsh, but it wasn’t sensible to invest that sort of sum in a high risk automated lending product without understanding how it worked. The GEA functioned as it always had, constrained only by a dwindling flow of green energy loans, which led to its closure soon after. I’m afraid you arrived very late to the party, after all the decent drinks were gone. Ps. I rather doubt you’ll end up losing anything close to that figure, if at all, but you’re probably going to have to be patient.
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