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Post by mrclondon on Sept 7, 2014 21:35:32 GMT
The new secondary market on FE is now live. There is a 0.5% fee for sellers, +3% premium / -3% discount allowed, and interest accruels are handled like FC (i.e. buyer pays the seller for the interest from last repayment date).
There are a few parts of most loans listed, but given the high rates achieved in the initial variable rate auctions, predictably most parts currently on the loan marketplace are listed at close to 3% premium. There are a few parts of the one secured loan FE have done, J****r L****** Ltd, available at a 0.7% premium to the fixed rate offered on this loan.
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Post by parag on Sept 7, 2014 21:50:22 GMT
Thank you mrclondon. We released it earlier today and notified all of our lenders by email. Any feedback anyone may have would be greatly appreciated as always. We monitor the forum regularly and will reply to any questions anyone may have. Thankfully, now this large release is complete, we can start listing new loan requests this week. Many thanks to all our lenders for your continued support. Regards, Parag |
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Post by mrclondon on Sept 10, 2014 13:06:02 GMT
The parts of three loans I put up for sale have all sold within 48 hours. A few suggestions for parag 's consideration a) it would be nice to have the option of an email when a loan part sells (as prompt that cash is available to re-invest or withdraw) b) the statement entries would benefit from being split to show the capital returned (with premium / discount), the accrued interest recived, and the fee paid to yoursleves. c) I prefered how the list of loans with parts for sale was displayed a few days ago - i.e. showing the range of available buyer rates. This list needs to be able to show at a quick glance whether there is anything worth investigating further.
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Post by parag on Sept 10, 2014 16:02:19 GMT
Hi mrclondon and many thanks for your suggestions. Responses to the points you raised: a) Great idea - I will log a ticket with the IT team to create an email alert that is sent at the end of every day, to any lenders whose loan parts have been sold during that day. b) This is WIP - I will let you know when this has been done. c) We removed the range of buyer rates available from the 'Buy' summary screen yesterday evening, as there was a small bug with the range it was displaying. The IT team are working on this but it might take a few days due to the nature of the change needed. Many thanks for your valuable feedback. It helps us actually deliver what our users want and not what we think they want. Regards, Parag |
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Post by parag on Sept 15, 2014 16:00:14 GMT
The parts of three loans I put up for sale have all sold within 48 hours. A few suggestions for parag 's consideration a) it would be nice to have the option of an email when a loan part sells (as prompt that cash is available to re-invest or withdraw) b) the statement entries would benefit from being split to show the capital returned (with premium / discount), the accrued interest recived, and the fee paid to yoursleves. c) I prefered how the list of loans with parts for sale was displayed a few days ago - i.e. showing the range of available buyer rates. This list needs to be able to show at a quick glance whether there is anything worth investigating further. Hi mrclondon. We have now implemented point 'b' and it is now live. I have attached a screenshot of what the change looks like for lenders but have omitted the line above it, which shows the business name, loan part ID and the fact it is a loan part sale for privacy reasons:  Points 'a' and 'c' are undergoing testing and we hope to roll these out very soon. Thanks again for your valued feedback. Regards, Parag
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Post by parag on Sept 17, 2014 9:56:03 GMT
The parts of three loans I put up for sale have all sold within 48 hours. A few suggestions for parag 's consideration a) it would be nice to have the option of an email when a loan part sells (as prompt that cash is available to re-invest or withdraw) b) the statement entries would benefit from being split to show the capital returned (with premium / discount), the accrued interest recived, and the fee paid to yoursleves. c) I prefered how the list of loans with parts for sale was displayed a few days ago - i.e. showing the range of available buyer rates. This list needs to be able to show at a quick glance whether there is anything worth investigating further. Hi mrclondon. We have reintroduced the 'Rates Available' section on the 'Buy' loan parts summary screen. That now leaves the email notifications which should be ready for release very soon. Thanks, Parag
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Post by mrclondon on Nov 30, 2015 13:36:19 GMT
parag You may have been too busy recently to have taken note of the launch of Funding Secure's secondary market last week. It has generated a fair bit of discussion (in this thread) partly due to the ability of premiums generating negative effective yield, and partly due to the taxation treatment of accrued interest. It is the latter I wanted to being to your attention. The approach FS have adopted is the buyer pays the seller for the accrued interest at the point of sale (as is the case with your secondary market). However for the seller the accrued interest is treated as a capital gain (as per any premium), but the accrued interest plus that received post sale is treated as taxable income for the buyer. Given FS loans are all rolled up interest (i.e. interest paid on maturity) the effect on buyer taxable income of buying SM parts is non trivial. I have been a fairly active buyer & seller on the Funding Empire SM over recent months (buying at par, selling for a small premium typically c. 1%), and I suspect your approach to taxation of accrued interest is wrong (By way of clarifiucation I'm NOT saying FS are right !, just that something seems wrong with your approach). Using the tax statement on the FE website for 6th April this year to date compared to my own records, I can see that the accrued interest I've received at the point of sale is treated as taxable income, AND it appears that on purchased loan parts the whole of the months interest is treated as taxable income, not just the interest from the point of purchase. Whilst this latter behaviour is consistent with the FS approach, your approach appears to be taxing the same accrued interest twice as income, once by the seller and once by the buyer. I don't unfortunately have a clean test data set so there is some ambiguity in what I'm observing - apologies if I'm way off the mark here. I accept that given all FE loans are monthly payers the impact is less severe than at FS, nevertheless given HMRC's ever increasing data mining capabilities it would be good if such matters were consistent across the industry.
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Post by parag on Nov 30, 2015 14:42:53 GMT
mrclondon I will get this looked at and get back to you asap.
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Post by vithca on Dec 24, 2015 14:30:19 GMT
mrclondon I will get this looked at and get back to you asap. Can you make your response public parag ?
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Post by parag on Dec 24, 2015 14:50:09 GMT
vithca All affected lenders were contacted. There was an issue with some lender accounts that meant accrued interest paid on secondary loan market purchases was not being correctly accounted for on the tax statement. This issue has been rectified now. Hope this helps.
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Post by pepperpot on Mar 15, 2016 17:27:26 GMT
Before I tag you know who, can someone have a look at the FE secondary market and see if you, well, see anything.
I've the grand total of £3.37 of available funds currently so it might be that any parts I cannot afford are not shown to me i.e. all of them. Otherwise something has gone pop as there is usually a reasonable list of stuff for sale, but the list I see is rather lacking in the aforementioned 'stuff'.
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Post by parag on Mar 15, 2016 17:28:42 GMT
pepperpot There is currently an issue with the display of loan parts on the secondary loan market. We are looking into this now and I'll let you know when it's been resolved. Apologies for any inconvenience.
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Post by pepperpot on Mar 15, 2016 17:35:00 GMT
pepperpot There is currently an issue with the display of loan parts on the secondary loan market. We are looking into this now and I'll let you know when it's been resolved. Apologies for any inconvenience. Wow, no tag and a 60 second response time, impressive! I'll ask the next question telepathically, I might not have to wait so long. 
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Post by parag on Mar 15, 2016 17:51:44 GMT
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Post by pepperpot on Mar 15, 2016 18:03:54 GMT
Yep, that's better, I'll cancel the eye test now. Looks a bit different, revamped display?
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