mike
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Post by mike on Sept 11, 2014 13:55:59 GMT
This lack of communication by savingstream regarding PBL 8 & 9 is beginning to concern me. I have been building up my holdings on this platform but am putting that on hold now. I'm beginning to get the perception that there is some sort of problem with these loans. I have also sent a query direct to SS and have n't received a reply yet. Mike |
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mikes1531
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Post by mikes1531 on Sept 11, 2014 14:01:51 GMT
This lack of communication by savingstream regarding PBL 8 & 9 is beginning to concern me. I have been building up my holdings on this platform but am putting that on hold now. I'm beginning to get the perception that there is some sort of problem with these loans. I have also sent a query direct to SS and have n't received a reply yet. Please do let us know when you receive a response from savingstream. Thanks.
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j
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Penguins are very misunderstood!
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Post by j on Sept 11, 2014 16:44:19 GMT
Not overly worried, only slightly concerned by the lack of response. I think SS/Lendy have enough in the coffers (I hope) to cover interest payments at the moment.
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mikes1531
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Post by mikes1531 on Sept 11, 2014 19:18:52 GMT
Not overly worried, only slightly concerned by the lack of response. I think SS/Lendy have enough in the coffers (I hope) to cover interest payments at the moment. Losing £250/day while waiting for PBL008&9 to go live can't be helping the business model. Not having a clue about what sort of margin they have between what they're charging borrowers and what they're paying lenders, I can't guess whether or not this cash outflow is significant in the big picture. It's clear, however, that they have a big incentive to progress loans to drawdown so I'm sure they're doing everything they can to push these loans in that direction. Having said that, though, they can't rush things because they still need to be very confident that the security they have on a loan will be sufficient to cover them if the loan turns out to be non-performing. Having promised that lenders will receive their capital and interest no matter what happens to the borrower/loan, their whole business is at risk of failure if enough loans go sour. Because of that promise, lenders might not care whether savingstream keep them up-to-date about every little development with live loans. With loans that aren't live yet, however, SS need to keep lenders well informed, because of the possibility that a loan might fail to go live. In that case, lenders still should receive all the interest they're accruing, but I expect lenders would like a bit of warning that they might be about to get their capital returned so they they can consider how they'd like to redeploy their money. For that same reason, SS need to keep lenders informed whenever a borrower contacts them about early or delayed repayment, though it's not so important in the latter case if SS/Lendy are prepared to return Lenders capital at maturity whether or not the borrower has repaid on time. But SS need to make a better practice of that, since having an entry on the list of Live Loans showing a negative Remaining Terms -- as there is now -- is unlikely to leave a positive impression on potential -- or existing -- lenders, especially when there's no explanation readily available.
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Post by Deleted on Sept 11, 2014 20:17:17 GMT
I think providing information, even if only to say things are progressing more slowly than anticipated and the completion date has slipped, helps to maintain investor confidence.
When things go cold and you don't hear anything for days or a week or more, people start to worry a bit about problems which may not even exist.
With PBL08 we were told it was expected to go live last Thurs or Fri. A week has passed since then and I'm not aware of there having been any update. Considering a lot of people have a lot of their money invested in that loan, and PBL09, I do think this is an area where SS could improve. If it's the case that the SS people are just very busy then perhaps the employment of a part time assistant whose job is to keep investors up to date on things via email, the SS website and forums such as this, woud be a small salary well spent in the longer term.
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mikes1531
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Post by mikes1531 on Sept 12, 2014 20:29:25 GMT
Well, somebody isn't sticking around to find out - about £6.5K of it been put up for sale today. I don't think we got the answer from SS about who gets the cashback - original lender or SM lender? The £6.5k was an investment that we had to cancel as the investor didn't make a follow up transfer for his auto-deposit. Cashback is paid to whoever holds the loan part at the point of the loan going live. Thank you, savingstream, for confirming that purchasers of PBL009 units in the secondary market before drawdown will receive the cashback rather than it going to the original purchaser. I see that more PBL009 units have been offered on the secondary market today, and I'm considering topping up my investment, but have another question before I invest further... What happens to the cashback offer if the loan doesn't draw down? I know SS have committed to paying the interest accrued between the time a lender invests and when the loan is abandoned and lenders receive their money back, but what happens to the accrued cashback payment? Does it disappear? Or is SS/Lendy committed to paying that as well?
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Post by savingstream on Sept 13, 2014 13:56:43 GMT
Latest update on PBL008 & PBL009.
PBL008 - Currently not live yet, there is a adjacent sub part of the property (not included in the valuation) which is being purchased in the same transaction (that is being sold immediately). The delay is with the purchase of this sub part. Our solicitors are currently holding these funds waiting to go live. We are charging the borrower on a daily basis for the cost of funds being held on account. We hope this to go live early next week.
PBL009 - Currently with legals conducting replies to enquiries between our legal team and borrowers solicitors. Hoping to go live mid-late next week.
We would like to confirm that all investors are earning interest daily on these loans, if for whatever reason these loans do not complete Lendy will repay the interest owed to all investors from company funds.
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mikes1531
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Post by mikes1531 on Sept 14, 2014 2:25:11 GMT
Latest update on PBL008 & PBL009. PBL008 - Currently not live yet, there is a adjacent sub part of the property (not included in the valuation) which is being purchased in the same transaction (that is being sold immediately). The delay is with the purchase of this sub part. Our solicitors are currently holding these funds waiting to go live. We are charging the borrower on a daily basis for the cost of funds being held on account. We hope this to go live early next week. PBL009 - Currently with legals conducting replies to enquiries between our legal team and borrowers solicitors. Hoping to go live mid-late next week. We would like to confirm that all investors are earning interest daily on these loans, if for whatever reason these loans do not complete Lendy will repay the interest owed to all investors from company funds. Thank you, savingstream, for the update. I do hope things proceed as planned and both these loans go live in the coming week. I note, however, that the question about what happens to accrued cashback payments if a loan fails to go live remains unanswered. Specifically, I asked... I see that more PBL009 units have been offered on the secondary market today, and I'm considering topping up my investment, but have another question before I invest further... What happens to the cashback offer if the loan doesn't draw down? I know SS have committed to paying the interest accrued between the time a lender invests and when the loan is abandoned and lenders receive their money back, but what happens to the accrued cashback payment? Does it disappear? Or is SS/Lendy committed to paying that as well? Can we please have a statement of SS/Lendy's policy in the matter?
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Post by savingstream on Sept 14, 2014 10:27:16 GMT
Lendy can confirm that interest + cashback will be paid to all investors in the event of a loan not going live.
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mikes1531
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Post by mikes1531 on Sept 14, 2014 12:08:49 GMT
Lendy can confirm that interest + cashback will be paid to all investors in the event of a loan not going live. Thank you, savingstream, for that confirmation. It is most encouraging. Hopefully the circumstances that would cause the need to apply this policy will be very rare indeed. The opportunity to invest more in PBL009 that prompted me to raise this subject has gone away, but I'll keep watching the Live Loans list in case more units are offered for sale before the loan goes live. SS get full marks for their policy on this -- and for taking the time to respond on a Sunday.
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Liz
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Post by Liz on Sept 14, 2014 22:23:56 GMT
Lendy can confirm that interest + cashback will be paid to all investors in the event of a loan not going live. Thanks SS, great answer.
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jhma
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Post by jhma on Sept 15, 2014 10:33:58 GMT
Update: Based on this forum thread and our own enquiries, we are now seeking 100% of this property as security, to include both 18 & 19 (plus basement flats). If this is not achievable we will consider not proceeding with this loan and refunding investors (plus x days interest). We will keep all investors updated. I wonder if SS can give lenders who have invested in this loan an update on the security issue please
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Post by savingstream on Sept 15, 2014 11:16:18 GMT
Update: Based on this forum thread and our own enquiries, we are now seeking 100% of this property as security, to include both 18 & 19 (plus basement flats). If this is not achievable we will consider not proceeding with this loan and refunding investors (plus x days interest). We will keep all investors updated. I wonder if SS can give lenders who have invested in this loan an update on the security issue please We can confirm that the new security will include both properties. We will be amending the bridging loan particulars document to confirm this in due course.
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mikes1531
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Post by mikes1531 on Sept 15, 2014 12:44:37 GMT
I wonder if SS can give lenders who have invested in this loan an update on the security issue please We can confirm that the new security will include both properties. We will be amending the bridging loan particulars document to confirm this in due course. That's great. I'm glad I invested.
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mikes1531
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Post by mikes1531 on Sept 23, 2014 21:02:50 GMT
We can confirm that the new security will include both properties. We will be amending the bridging loan particulars document to confirm this in due course. That's great. I'm glad I invested. I noticed today that the particulars document has been updated and the value has increased to £890k. So the LTV is down to 35%. All we need now is for the loan to go live.
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