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Post by mrclondon on Nov 27, 2014 20:50:04 GMT
Has anyone tried to reconcile the principal payment they received today? I have -- and I can't. My Falmouth holding is in my GEIA. Four separate parts have been bought for me. Each statement entry shows the amount to be an exact number of pence -- i.e. the third through 20th numbers to the right of the decimal all are zeros. My total holding as of this morning was £2.63 followed by 18 zeros. According to the website, today's principal repayment was £38,783.34 and, because the original loan was for £460k, I was expecting to receive a principal payment of £2.63 x £38,783.34 / £460,000. If I've done the maths correctly, that would be 22.17395p (rounded to five decimal places). My statement, however, shows that I received a credit of 22.16576p (rounded to five dp). So why don't those two numbers match? Has anyone tried a similar calculation? Do the numbers reconcile more closely for larger holdings? I realise that the amount involved is trivial, but if I can't explain the small numbers, how can I have any faith in the larger ones? Wel spotted. My £500 in the MLIA has been reduced by the same ratio that you report. Looks like the capital "repayment" applied to the loan was £38,769
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oldgrumpy
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Post by oldgrumpy on Nov 27, 2014 20:52:27 GMT
I've replicated your calculation with my holding and it comes to £42.15580 and my account received £42.14022 a discrepancy of £0.01558 so shan't email them for an explanation this time  ed .... tallies with mrclondon's amendment late edit again ...repayment from borrower £38,783.34 repayment to lenders £38,769 So where has the other £14.34 gone, AC? The loan page says one figure while the repayments page shows the higher one. AC, why do your figures never tally these days? Are they too difficult? |
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Post by batchoy on Nov 27, 2014 20:55:36 GMT
Has anyone tried to reconcile the principal payment they received today? I have -- and I can't. My Falmouth holding is in my GEIA. Four separate parts have been bought for me. Each statement entry shows the amount to be an exact number of pence -- i.e. the third through 20th numbers to the right of the decimal all are zeros. My total holding as of this morning was £2.63 followed by 18 zeros. According to the website, today's principal repayment was £38,783.34 and, because the original loan was for £460k, I was expecting to receive a principal payment of £2.63 x £38,783.34 / £460,000. If I've done the maths correctly, that would be 22.17395p (rounded to five decimal places). My statement, however, shows that I received a credit of 22.16576p (rounded to five dp). So why don't those two numbers match? Has anyone tried a similar calculation? Do the numbers reconcile more closely for larger holdings? I realise that the amount involved is trivial, but if I can't explain the small numbers, how can I have any faith in the larger ones? Wel spotted. My £500 in the MLIA has been reduced by the same ratio that you report. Looks like the capital "repayment" applied to the loan was £38,769 I get the same result and come to the same conclusion. A repayment of £38,769 as stated in the the email from davidricketts1 has been applied and not the the £38,783.34 as stated on the repayments tab on the loan page. "And now, folks, it's time for 'Who do you trust!' Hubba, hubba, hubba! Money, money, money! Who do you trust? Me?"
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Post by batchoy on Nov 27, 2014 21:42:43 GMT
I seem to have a problem with accrued interest on this loan. I sold a decent chunk of the loan before it was suspended. Prior to the principal repayment I had the correct accrued; now the accrued is only around 30% of the amount this morning. Yet I do not see any interest having been paid. It seems my accrued is now just that appropriate for my current post-sale post-redemption amount. It appears that the software cannot cope with an early unplanned captial repayment as a result the accrued interest has gone awry (quelle surprise) hopefully things will right themselves or get righted when the interest repayment is made at the end of the month. By the way has any one else noticed that the repayment page now shows not only a capital repayment today but an unpaided interest repayment for today and then interest repayments due tomorrow, Saturday and Sunday.
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mikes1531
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Post by mikes1531 on Nov 28, 2014 1:59:26 GMT
By the way has any one else noticed that the repayment page now shows not only a capital repayment today but an unpaided interest repayment for today and then interest repayments due tomorrow, Saturday and Sunday. I did. I think it's another case of the system not having been designed to deal with these out-of-sequence payments. Something similar happened at Hackney. If you look at that Repayment schedule you'll also see daily interest payments between 15/Oct and 10/Nov. With respect to the discrepancy I noted earlier, I'm beginning to think that the reported principal repayment of £38,783.34 may be the problem. The Capital Remaining for this loan is now £421,231.00 and that is exactly £38,769.00 less than the original loan amount. Perhaps that's why our payments seem to have been based on that number, and perhaps it was the data entry of the £38,783.34 repayment that is the error. Of course, if the system has calculated future payments based on that entry then all future payments are wrong as well. But then we know that all the future payments were wrong before today since they don't include the agreed 5% of principal payment due on the first anniversary of drawdown. That issue was brought to AC's attention about a month ago, and they've confirmed that the repayment schedules for just about every WT loan are incorrect. The fact that a month down the road the problem hasn't been fixed suggests that either it has been deemed to be too inconsequential to spend much time correcting -- and I wouldn't agree with that -- or there's a bigger system problem involved that's preventing AC from correcting the repayment schedules. Whatever the reason, it undermines confidence in AC's ability to get the accounting correct.
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mikeb
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Post by mikeb on Nov 28, 2014 10:45:27 GMT
It appears that the software cannot cope with an early unplanned captial repayment as a result the accrued interest has gone awry I understand that the new website will fix this ... 
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Post by batchoy on Nov 28, 2014 11:24:23 GMT
Of course, if the system has calculated future payments based on that entry then all future payments are wrong as well. But then we know that all the future payments were wrong before today since they don't include the agreed 5% of principal payment due on the first anniversary of drawdown. That issue was brought to AC's attention about a month ago, and they've confirmed that the repayment schedules for just about every WT loan are incorrect. The fact that a month down the road the problem hasn't been fixed suggests that either it has been deemed to be too inconsequential to spend much time correcting -- and I wouldn't agree with that -- or there's a bigger system problem involved that's preventing AC from correcting the repayment schedules. Whatever the reason, it undermines confidence in AC's ability to get the accounting correct. I'm sorry to say but I have have reached the conclusion that the with all the issues that there are, there are fundamental flaws in the loan model which are preventing AC correcting them with any great haste, so whilst we are seeing multiple daily tweaks to the UI which seem to keep some lenders really happy, the big issues which in some cases pre-date the upgrade have not been fixed and probably won't be fixed until the loan model has been completely re-scoped and rewritten and hopefully this time completely tested.
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mikes1531
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Post by mikes1531 on Nov 28, 2014 18:43:46 GMT
I see that this loan has been readmitted to the Aftermarket, with just under £250k available at the moment. Does anyone know whether that's a similar amount to what was available before the missed commissioning deadline? Or are there a lot of investors who have all decided to head for the exit since then?
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Post by Ton ⓉⓞⓃ on Nov 28, 2014 20:41:57 GMT
I see that this loan has been readmitted to the Aftermarket, with just under £250k available at the moment. Does anyone know whether that's a similar amount to what was available before the missed commissioning deadline? Or are there a lot of investors who have all decided to head for the exit since then? As far as I can remember, there was about £230k on the after-market before the mini-crisis. It fluctuated from over £250k to the low 100k territory, I assume as underwriters played around with what they had on offer. There seemed to be some demand for this loan before 21st Nov since I was lifted out of 65% of my position in the 24 hours prior to suspension (an amount in the thousands rather than tens of thousands to give an idea of scale). Since it was reinstated I've been lifted in smalls so somebody is still buying it. The WT loan that has most noticeably dropped in what is on offer seems to be No**h Lo***an. That was around £200k and is now closer to £140k. This could just be underwriters reducing the amount on offer to entice retail bids or perhaps it's because it now has the best combo of LTV and debt cover and seems like it will commission just before the FIT deadline (according to last AC reply to Q&A). Those small purchases you mention for this WT loan might be simply where holders accounts are automatically buying what was refunded under the new agreement with the Borrower, OR, well, AND really people buying through the Green a/c.
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mikes1531
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Post by mikes1531 on Nov 28, 2014 22:00:01 GMT
... and seems like it will commission just before the FIT deadline (according to last AC reply to Q&A). I've decided to limit any further purchases of WT loans to those where the WT has been commissioned successfully.
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Post by mrclondon on Nov 28, 2014 23:10:43 GMT
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Post by phlitb on Dec 2, 2014 0:56:48 GMT
Something definitely seems awry with this loan. This evening the overall value of my MLIA dropped by £18.41. Which corresponds exactly to the amount of Falmouth it purchased at 19:33. Please can you check, chris |
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mikes1531
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Post by mikes1531 on Dec 2, 2014 4:14:05 GMT
Something definitely seems awry with this loan. This evening the overall value of my MLIA dropped by £18.41. Which corresponds exactly to the amount of Falmouth it purchased at 19:33. Please can you check, chrisAnother thing wrong with this loan is that the Capital Remaining has reduced by nearly £40k without any further repayments showing as having been received. I haven't a clue whether that reduction might have caused a similar devaluation in every lender's account value.
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mikes1531
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Post by mikes1531 on Dec 2, 2014 4:19:38 GMT
According to most recent update the site has been valued at £620k with LTV now 68%. By my calcs debt cover is around 1.46 so this loan is quite comparable to many of the other most recent WT loans (slightly higher LTV than average but better debt cover). The slight issue might be that it's a refurb. The covenant at 58% has been breached so AC have asked for proposals from the borrower, which lenders can vote on. Surely the correct option is a further equity injection as this would bring down the LTV and increase debt cover? Another £25-30k would get the LTV below 65% and the debt cover above 1.5, which would make it a decent loan to hold on a relative value basis vs. other WT loans. I suppose this begs the question that if the borrower wanted to inject further equity, they already would have done so ... Another thing to bear in mind is that AFAIK the turbine still hasn't been commissioned. Until it is, the valuation is still potentially subject to significant further adjustment. I don't think we've been told why the commissioning wasn't done before the FIT deadline, or when it now is expected to happen. Hopefully that info will be available before lenders have to vote on future action.
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mikes1531
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Post by mikes1531 on Dec 2, 2014 4:37:20 GMT
Something definitely seems awry with this loan. This evening the overall value of my MLIA dropped by £18.41. Which corresponds exactly to the amount of Falmouth it purchased at 19:33. Please can you check, chrisAnother thing wrong with this loan is that the Capital Remaining has reduced by nearly £40k without any further repayments showing as having been received. I haven't a clue whether that reduction might have caused a similar devaluation in every lender's account value. Further to the above, I'm now convinced it's related to the spurious reduction in Capital Remaining. The value in my GEIA has dropped by the amount of the capital repayment I received last Thursday. I suspect that's the same thing that happened to phlitb, and I suspect that it happened before his account made the purchase he reported. I further suspect that the amount purchased matched his capital repayment, and that it was the capital repayment that triggered the purchase request as AutoInvest tried to increase his investment back up to the level it had been before the repayment was received. I can't remember exactly when Falmouth parts became eligible to be traded on the Aftermarket again. If it was earlier than 1930 Monday, then I suspect it wasn't until then that he had funds available to make a purchase with.
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