oldgrumpy
Member of DD Central
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Post by oldgrumpy on Oct 15, 2014 13:11:32 GMT
"...I expect that the new system -- which I thought was supposed to have been released by now...."
Unfortunately......
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Post by Ton ⓉⓞⓃ on Oct 15, 2014 13:12:44 GMT
I've just seen this proposal in the archive, this would be the first failed loan to be in there if that was really the case. This loan is in limbo at the moment. Perhaps a decision hasn't been taken yet as to whether this loan will be allowed to fail or whether underwriting will be arranged. If it does become a failure, then I would expect it to disappear. But the new system could be a factor as well, with underwriting only tentatively arranged early on and not formalised until closer to drawdown. The critical factor from AC's point of view is confidence that underwriters can be found for any particular loan, since having a loan fail for lack of funding after AC have invested a lot of time and money in their duedil and progress towards drawdown would be an expensive failure for AC. Not to mention that it wouldn't win them any prizes in the introducing/borrowing community. I expect that the new system -- which I thought was supposed to have been released by now -- will put all the underwriting questions out of view. Just as you say, with the new system in the wings, it may be just waiting for it to start, whereupon it suddenly re-appears in the loan pipeline still looking for u/w... having said that it has disappeared from the archive and is now in the freezer/upcoming.
Anyway the later a loan fails the more money has been 'wasted' but failure will happen and has to happen and of course it is preferred at this point rather than when they're loan units
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mikeb
Posts: 1,072
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Post by mikeb on Oct 15, 2014 14:02:23 GMT
I expect that the new system -- which I thought was supposed to have been released by now -- will put all the underwriting questions out of view. I also wonder how many people didn't bid in this, and just set an AI for it and walked away (like me) -- if it turns into a loan, when an underwriter starts dropping parts of it, I'll pick it up then. Even with the new tougher DD process that promised 4-6 weeks from auction close, stuff's getting stuck for various reasons.
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mikes1531
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Post by mikes1531 on Oct 15, 2014 14:25:24 GMT
Deleted -- I should have engaged my brain before I started typing.
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