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Post by andrewholgate on Sept 26, 2014 13:27:09 GMT
Valuations have been mentioned.
In all cases we use RICS qualified valuers and they report to the Red Book standards. How confident are we the values will stack up? The proof is in the pudding. Property lending isnt dangerous if done properly. Prudence is needed in most cases and we would never place a loan to auction where we were not confident in the valuation.
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Post by Ton ⓉⓞⓃ on Sept 26, 2014 13:34:41 GMT
<snip> The question comes as to how we deal with these situations. We have a set procedure that follows the principles of: - Breach - Forbearance - Distress - Default - Recovery Thank you for your answers. Can you put a little more flesh on the above quote? Thanks
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bigfoot12
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Post by bigfoot12 on Sept 26, 2014 13:37:18 GMT
Valuations have been mentioned. In all cases we use RICS qualified valuers and they report to the Red Book standards. How confident are we the values will stack up? The proof is in the pudding. Property lending isnt dangerous if done properly. Prudence is needed in most cases and we would never place a loan to auction where we were not confident in the valuation. Hi, The two tranches of 'Midlands Trade Finance Provider' on the after market have different LTVs but the description says that they rank equally.
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bugs4me
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Post by bugs4me on Sept 26, 2014 13:39:20 GMT
Thanks for the responses so far Andrew. Would it not be worth considering that PBL's should be for a standard 12 month term with a minimum interest of say 6 months. My view is that an exit within the current normal 6 months is far too optimistic in many circumstances. Just a thought.
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oldgrumpy
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Post by oldgrumpy on Sept 26, 2014 13:40:13 GMT
"The main questions being asked are around the speed of response on the Q&A sections of the loan pages"
Andrew, your response to this has been noted, but much of the criticism has been that on many many occasions AC has already promised further information by set dates, often "at the latest by" but subsequently nothing transpires until lenders pester for those promised updates. When a time is given like that, something must appear by the promised date.
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Post by andrewholgate on Sept 26, 2014 13:44:14 GMT
Ton ⓉⓞⓃCertainly: - Breach. Some condition or clause has been broken. This may be something very minor like management accounts that should be sent 30 days after month end come 32 days after month end. Very minor breach and can be discounted. Other breaches can be more serious like missed payments - Forbearance. This simply means that a simple resolution or an acceptable way forwards can be achieved and that once resolved things can be reset. - Distress. Having investigated the breach, there is a serious concern. This is the stage when we instructed accountants on FF to investigate further. - Default. Formal default is declared following an acceptable grace period (under the FCA treating customers fairly rule). At this stage we are working actively to get cash back in - Recovery. We are recovering the funds through a formal process. Our big difference is that there are numerous people in AC who have years of experience doing just this. At the last count it totalled over 75 years of experience, and we also have a qualified Insolvency Practitioner in the business. We know how to manage these situations.
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Post by andrewholgate on Sept 26, 2014 13:44:50 GMT
Thanks for the responses so far Andrew. Would it not be worth considering that PBL's should be for a standard 12 month term with a minimum interest of say 6 months. My view is that an exit within the current normal 6 months is far too optimistic in many circumstances. Just a thought. We will consider it.
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Post by andrewholgate on Sept 26, 2014 13:46:02 GMT
"The main questions being asked are around the speed of response on the Q&A sections of the loan pages"
Andrew, your response to this has been noted, but much of the criticism has been that on many many occasions AC has already promised further information by set dates, often "at the latest by" but subsequently nothing transpires until lenders pester for those promised updates. When a time is given like that, something must appear by the promised date.
Noted and we had a session yesterday covering this with the team. It is now being monitored closely by the new Sales Director. Your banana is in the post.
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Post by andrewholgate on Sept 26, 2014 13:54:55 GMT
OK, looks like all questions have been asked and answered. We'll keep an eye on things over the next few hours and days, but thank you for the feedback.
Andy
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oldgrumpy
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Post by oldgrumpy on Sept 26, 2014 14:16:32 GMT
Your banana is in the post. Already arrived - ta! (not many questions were there?)
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Post by andrewholgate on Sept 26, 2014 14:36:11 GMT
No. Must mean that there are lots of good things we are doing!
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Post by oldnick on Sept 26, 2014 14:45:05 GMT
This seems to be an efficient way of dealing with issues. Thanks andrewholgate and chris and all of you inquisitors out there. Oldnick Little Snoring. |
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oldgrumpy
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Post by oldgrumpy on Sept 26, 2014 14:45:25 GMT
I noticed that 41 people were watching Assetz threads at one point.
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Vero
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Post by Vero on Sept 26, 2014 14:47:44 GMT
The main questions being asked are around the speed of response on the Q&A sections of the loan pages, as well as the updates on where loans are up to. The second theme running from this is regarding bridging loans and their ability to repay. First point first. It seems that our process was working right up until David went on holiday and our fall back plan didn't work very well. There also seems to be an issue with time stamping the messages and updates. Whilst these are done in the back office, it doesn't happen on the website. Also, some of the updates were placed in the wrong section. So what are we doing? - We have a new sales director who will be monitoring these Q&As
- Each update and message will have a date included as to when it went live
- Draw down timescales and actions will be updated regularly
- Major updates will appear on the website and will be emailed to lenders
This is one area that we have let ourselves down with and I can only apologise.
The second point. All the problematic bridging loans have come from one introducer and each loan has been difficult. To that end we are moving away from that introducer and once the loans are exited we will not be entering into more. On other bridging loans we have had much more control on how it exits and these should not be problematic.
Andrew
I missed the QA, busy, but thank you andrewholgate, these areas concerned me most. davidricketts1's return and exceptional efforts in both these areas have been noted and appreciated.
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Post by Ton ⓉⓞⓃ on Sept 26, 2014 15:20:46 GMT
This seems to be an efficient way of dealing with issues. Thanks andrewholgate and chris and all of you inquisitors out there. Oldnick Little Snoring. Are you in Norfolk Or Are you saying you haven't banned anyone in a while?
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