r1200gs
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Post by r1200gs on Apr 4, 2019 22:19:33 GMT
Although this loan is now 85% filled , there is still over £1.3 m of funding required, because it's a monster £8.7m loan. Doubtless we shall see in the fullness of time, but right now lenders aren't exactly falling over themselves to participate, that's for sure, even at 14% . Once bitten....
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lobster
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Post by lobster on Apr 9, 2019 10:21:34 GMT
This loan is now "awaiting activation" although it was only 85% filled ?? There's a note on the loan saying that FS have found an underwriter to fund the remainder of the loan up to a shortfall of 2m. All sounds a bit strange to me.
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arby
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Post by arby on Apr 9, 2019 10:26:56 GMT
This loan is now "awaiting activation" although it was only 85% filled ?? There's a note on the loan saying that FS have found an underwriter to fund the remainder of the loan up to a shortfall of 2m. All sounds a bit strange to me. What sounds strange?
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lobster
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Post by lobster on Apr 9, 2019 10:37:42 GMT
This loan is now "awaiting activation" although it was only 85% filled ?? There's a note on the loan saying that FS have found an underwriter to fund the remainder of the loan up to a shortfall of 2m. All sounds a bit strange to me. What sounds strange? Well I'm not aware of FS having filled any other loans in this manner, by pulling in an underwriter at the 11th hour. Normally they simply request funding from us lenders, and then just wait for it to fill, occasionally cancelling a loan when it's clearly struggling to fill, as seemed to be the case with this one.
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arby
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Post by arby on Apr 9, 2019 10:43:44 GMT
Well I'm not aware of FS having filled any other loans in this manner, by pulling in an underwriter at the 11th hour. Normally they simply request funding from us lenders, and then just wait for it to fill, occasionally cancelling a loan when it's clearly struggling to fill, as seemed to be the case with this one. OK, I was wondering if you were concerned there were some dodgy shenanigans going on. As for this specific process, it's not used regularly, but it's been done a handful of times.
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rocky1
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Post by rocky1 on May 12, 2019 17:45:34 GMT
still available for funding more than a month after it was due for actlvation. been stuck on 86% for a good while now come on FS use your underwriter if you really have one silly enough to fund 2 million on a 80% LTV second charge scheme.many lenders are now used to the strokes/stories that you come up with so the rush to get it activated by 3rd April was all BS.
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iRobot
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Post by iRobot on May 12, 2019 18:48:55 GMT
still available for funding more than a month after it was due for actlvation. been stuck on 86% for a good while now come on FS use your underwriter if you really have one silly enough to fund 2 million on a 80% LTV second charge scheme.many lenders are now used to the strokes/stories that you come up with so the rush to get it activated by 3rd April was all BS. AIUI, it has been fully funded / underwritten as notated by the orange & green colouring (and as opposed to the blue / uncoloured shading on other loans) The reason this is yet to be marked active (again AIUI) is that the underwriter has the option to have their holding bought out with incoming 'retail' funding rather than list it on the SM (if the loan were active) and risk having to sell at a discount. If correct, this means the loan is filled, the borrower gets their funding, the platform 'completes' on their loan origination and the underwriter gets to sell down their holding without need to discount (and presumably having secured a higher rate and/or fixed fee for providing the underwriting facility in the first place). Only downside is for those 'retail' investors who like to avail themselves of the SM can't whilst the underwriter sells off. (And maybe those hoping to buy at a discount have to wait longer too.)
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 12, 2019 19:46:51 GMT
still available for funding more than a month after it was due for actlvation. been stuck on 86% for a good while now come on FS use your underwriter if you really have one silly enough to fund 2 million on a 80% LTV second charge scheme.many lenders are now used to the strokes/stories that you come up with so the rush to get it activated by 3rd April was all BS. Couldn't have put it better myself rocky1. [Thumbs up emoticon here ] 
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arby
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Post by arby on May 12, 2019 19:52:14 GMT
still available for funding more than a month after it was due for actlvation. been stuck on 86% for a good while now come on FS use your underwriter if you really have one silly enough to fund 2 million on a 80% LTV second charge scheme.many lenders are now used to the strokes/stories that you come up with so the rush to get it activated by 3rd April was all BS. Couldn't have put it better myself rocky1 . [Thumbs up emoticon here ] The underwriters have been utilised, as explained in the post above yours.
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Mousey
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Post by Mousey on May 12, 2019 20:17:19 GMT
It's a de facto second charge loan behind £6.7m plus interest (of which fundingsecure haven't disclosed the rate). Assuming at par with what's offered by FS that's 18% which at 12 months is £1.2m.
So the institution will take a £7.9m slice before any recovery to P2P investors assume recovery on day 1 of default.
However fundingsecure don't recover on day 1... Eg one of my loans "Development Project, Formby" is currently 648 days beyond term and they have only just "received the report from the LPA Receivers and they are working on the exit strategy".
The project has a Day 1 Value of £6,500,000 so why has anyone invested?!?
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rocky1
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Post by rocky1 on May 13, 2019 4:44:37 GMT
This borrower is apparently worth 400 million surely FS was not his only option for finance at such interest rates.the underwriter if thereis one.we have had them pull out before has realised what a crock of sh*t this is and is using there option to offload to FS lenders who will more than likely get shafted in a few years time.maybe FScould update us as to what is happening here behind the smoke screens .
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arby
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Post by arby on May 13, 2019 6:49:29 GMT
This borrower is apparently worth 400 million surely FS was not his only option for finance at such interest rates.the underwriter if thereis one.we have had them pull out before has realised what a crock of sh*t this is and is using there option to offload to FS lenders who will more than likely get shafted in a few years time.maybe FScould update us as to what is happening here behind the smoke screens . The underwriter that pulled out you are referring to was on a different loan and they had agreed they would pay money if the loan defaulted. That is very different to this loan where the underwriter has ready paid the money and all the money has been received by the borrower. The underwriter hasn't "realised what a crock of sh*t this is" and is trying to pull out, it was agreed from the beginning as it was recognised that it was very unlikely that FS lenders would fill such a large loan. This loan isn't for you, that's fine, it's not for me either, but please take the time to understand the specifics before talking it down repeatedly.
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Post by mrclondon on Jun 28, 2019 12:30:41 GMT
Loan withdrawn:
"The institutional funder has decided to take over the total funding of this loan, including the portion already funded on our platform. We will therefore shortly be reducing the loan size to match existing investment to enable the loan to be activated and then immediately completed. This will return capital and all interest accrued to all investors."
However the return is shown as 10.9% (vs expected rate of 14%) ... calculating the rate based on interest paid / reduced loan size does indeed come out at 10.9%.
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arby
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Post by arby on Jun 28, 2019 12:54:35 GMT
Loan withdrawn:
"The institutional funder has decided to take over the total funding of this loan, including the portion already funded on our platform. We will therefore shortly be reducing the loan size to match existing investment to enable the loan to be activated and then immediately completed. This will return capital and all interest accrued to all investors."
However the return is shown as 10.9% (vs expected rate of 14%) ... calculating the rate based on interest paid / reduced loan size does indeed come out at 10.9%.
Is this because the loan was funded so slowly, such that a large number of investors didn't get the 130+ days of interest? i.e. Someone investing one month after the loan was initiated still gets 14% per annum, but their actual return would be based on 110 days of interest, so significantly less return.
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rocky1
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Post by rocky1 on Jul 13, 2019 6:13:20 GMT
as I said in a earlier posting a crock of sh*t.this was one of the new style FS loans with underwriters all over the place and hoping lenders would fill but got it wrong and had to pay out a bit of interest themselves.this is probably the reason now for the change of tactics with lower rates and no interest until a loan is activated and withdrawn if not filled by lenders in a specified time.reminds me of a little LY yarn that said investors must fund tranches in a quick and timely manner to allow borrowers to continue projects and increase the chances of seeing your funds returned.we all know what happened with that.
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