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Post by extremis on Jul 13, 2018 19:11:13 GMT
Today and yesterday Hipocredit has exercised its buyback rights again. Only high interest current loans with (near) perfect history were bought back; no default or 60+ days were repurchased (from my portfolio anyway). This is the second time that Hipocredit does a massive buyback of high performing loans leaving the bad ones to investors. This behavior should not be tolerated anymore. I have stopped buying Hipocredit loans after their first huge buyback, but now i consider to also sell all their remaining loans to SM while they are still performing.
Both times there was no prior warning (not that it would make a big difference anyway). Also, this time the buyback happened just before the supposed Mogo's buyback (that has not happened yet) which was announced by Mintos a few weeks ago. I am sure this is not a coincidence. Maybe they thought that with so much money uninvested after the supposed massive Mogo's buyback they could get some funding by relisting their loans at a much lower interest rate and under the indirect scheme.
Now, if they offered a buyback guarantee it would be entirely a different story: surely we would loose the high interest rates, but the risk to be left with a non performing loan portfolio would be significantly lower. In my opinion, Mintos should forbid loan originators to buyback loans without a buyback guarantee. Until that happens (if ever) i will stop buying loans without a buyback guarantee from any loan originator.
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Post by rahafoorum on Jul 14, 2018 8:02:40 GMT
In my opinion, Mintos should forbid loan originators to buyback loans without a buyback guarantee. Until that happens (if ever) i will stop buying loans without a buyback guarantee from any loan originator. Unless they've sold it or something, Hipocredit IS Mintos. Haven't been following all the news related to it, but Mintos started out issuing loans and then when they pivoted more toward the originator marketplace model, they split their loan business into a new company named Hipocredit separately.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Jul 14, 2018 9:30:14 GMT
There seems to be no reason to invest in anything other than the shortest terms on Mintos, as if interest rates drop any loans can be taken back and the deal you made means nothing. This is not what I signed up for when Mintos began.
The Mogo information on the Mintos site says this:
I expect the same applies to Hipocredit.
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Post by extremis on Jul 14, 2018 12:28:23 GMT
Mintos sold Hipocredit a year ago. At their Loan originator page it is no longer mentioned whether some of Hipocredit and Mintos equity investors overlap, so i take it they are separate entities right now.
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0risk
Member of DD Central
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Post by 0risk on Jul 14, 2018 14:47:38 GMT
Lots of buyback everywhere: Lendo, Cash Credit, Simbo, Sebo, ....
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Post by geldregiertdiewelt on Jul 15, 2018 8:52:26 GMT
Today and yesterday Hipocredit has exercised its buyback rights again. .... In my opinion, Mintos should forbid loan originators to buyback loans without a buyback guarantee. Until that happens (if ever) i will stop buying loans without a buyback guarantee from any loan originator. Buyback is just part of what we signed up to. Not very professional to complain when it happens.
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Post by rahafoorum on Jul 15, 2018 9:33:51 GMT
Mintos sold Hipocredit a year ago. At their Loan originator page it is no longer mentioned whether some of Hipocredit and Mintos equity investors overlap, so i take it they are separate entities right now. Doesn't necessarily mean it's not owned by same people anymore. Just possibly not related in terms of legal requirements.
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Post by extremis on Jul 15, 2018 11:41:33 GMT
Today and yesterday Hipocredit has exercised its buyback rights again. .... In my opinion, Mintos should forbid loan originators to buyback loans without a buyback guarantee. Until that happens (if ever) i will stop buying loans without a buyback guarantee from any loan originator. Buyback is just part of what we signed up to. Not very professional to complain when it happens. Of course. I didn't mean it as a complaint though; just a suggestion to Mintos regarding loan originators that issue loans without buyback guarantee. A note about professionalism: i don't need to be professional, i am just a guy investing my hard earned money. The companies that take my money should be professional. As for Mintos, until now, i am very satisfied: they are truly professional and responsive, i hope that will never change. But for loan originators i have mixed feelings. Compare, for example, Mogo and Hipocredit: they both did i massive buyback of loans recently, but Mogo gave us (through Mintos) a prior warning several weeks ago, announced they would buyback both performing and non-performing loans and they are (mainly) issuing loans with buyback guarantee. I would call Mogo's behavior professional and responsible towards investors. I couldn't say the same for Hipocredit, i think their attitude towards investors is irresponsible and unprofessional (albeit legal), so i (as many others) decide not to invest in their loans anymore.
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Post by geldregiertdiewelt on Jul 15, 2018 15:19:54 GMT
Buyback is just part of what we signed up to. Not very professional to complain when it happens. Of course. I didn't mean it as a complaint though; just a suggestion to Mintos regarding loan originators that issue loans without buyback guarantee. .... As for Mintos, until now, i am very satisfied: they are truly professional and responsive, i hope that will never change. ..... I would call Mogo's behavior professional and responsible towards investors. Fully agreed, we're on the same page. So the average interest rate Mogo will pull up after their refinancing exercise has been completed should be our benchmark for reliable and serious loan originators. Everything above should be used with caution, I think.
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fric
Member of DD Central
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Post by fric on Jul 16, 2018 8:36:30 GMT
Lots of buyback everywhere: Lendo, Cash Credit, Simbo, Sebo, .... Yeah, indeed. This weekend Mogo did a massive buyback as well.
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toffeeboy
Member of DD Central
Posts: 500
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Post by toffeeboy on Jul 17, 2018 12:34:31 GMT
Today and yesterday Hipocredit has exercised its buyback rights again. Only high interest current loans with (near) perfect history were bought back; no default or 60+ days were repurchased (from my portfolio anyway). This is the second time that Hipocredit does a massive buyback of high performing loans leaving the bad ones to investors. This behavior should not be tolerated anymore. I have stopped buying Hipocredit loans after their first huge buyback, but now i consider to also sell all their remaining loans to SM while they are still performing. Both times there was no prior warning (not that it would make a big difference anyway). Also, this time the buyback happened just before the supposed Mogo's buyback (that has not happened yet) which was announced by Mintos a few weeks ago. I am sure this is not a coincidence. Maybe they thought that with so much money uninvested after the supposed massive Mogo's buyback they could get some funding by relisting their loans at a much lower interest rate and under the indirect scheme. Now, if they offered a buyback guarantee it would be entirely a different story: surely we would loose the high interest rates, but the risk to be left with a non performing loan portfolio would be significantly lower. In my opinion, Mintos should forbid loan originators to buyback loans without a buyback guarantee. Until that happens (if ever) i will stop buying loans without a buyback guarantee from any loan originator. So you are complaining (it is complaining even if you claim that it isn't) because they did something that benefited their company and not you. Now why would they do something that didn't benefit their company?
What they have done is completely within the terms of the investment that you was given, they aren't required to give any notice and their reasons for doing the buyback are their own. They don't have to explain anything to us.
They don't have buyback, you made the choice to invest in these loans and accepted their terms at the time but now it doesn't suit you, you are complaining about them. As you have said you have stopped buying their loans and that is your right because you don't like their terms but why did you buy them in the first place if you didn't like what could happen?
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Post by extremis on Jul 17, 2018 23:08:45 GMT
As you have said you have stopped buying their loans and that is your right because you don't like their terms but why did you buy them in the first place if you didn't like what could happen? Well, i guess i didn't expect they would (ab)use their buyback rights to such extent (was a newbie at that time). Now i know better, so i will be more careful with all loan originators that don't offer buyback guarantee. Also, i never said they have violated any terms, if they had i would have surely complained to Mintos (and hope many others would have too). I think this forum is very useful for exchanging views and reporting our experiences (both positive and negative) in p2p lending. This way we can stay informed and help each other in making better investments (and perhaps give a warning to newcomers in p2p lending). Btw, they have done it again. But this time, i don't really care as there is not much left of Hipocredit's loans in my portfolio (except a couple of defaulted ones).
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Jul 18, 2018 9:17:43 GMT
Mintos sold Hipocredit a year ago. At their Loan originator page it is no longer mentioned whether some of Hipocredit and Mintos equity investors overlap, so i take it they are separate entities right now. Looking at the available loans, if you filter by Indirect Investment Structure you find Hipocredit loans listed. That structure says it is for loans issued by Mintos group companies.
I still have many Hipocredit loans going back to January 2015 with good interest rates, looking at my finished loans there are none which could be buy back this month.
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Post by nellerdk on Jul 18, 2018 12:24:06 GMT
Lots of buyback everywhere: Lendo, Cash Credit, Simbo, Sebo, ....
but I can see there is still a lot of loans on the primary market, which meet my auto invest criteria, so I don't understand why I have cash drag.
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