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Post by chris on Oct 9, 2014 9:14:33 GMT
Hi Chris, Does the new loan model mean an end of deferred payments of interest ? I had interest on loan 84 paid yesterday but also expected some deferred interest on loan units sold in the last month. Yes it's all rolled into the one interest payment. We no longer track deferred interest separately instead we calculate a percentage of the loan that you own over time dynamically at point of repayment. So when you sell a loan unit you will be picked up as having owned a percentage of the loan for a fraction of the time between two payments and will be compensated accordingly.
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Post by batchoy on Oct 9, 2014 9:35:55 GMT
Perhaps you can keep the minimum loan part sale reasonably high - say £20 for a while to prevent this sort of activity. I would like to buy and sell at the exact correct price if that is possible. It stops a lot of messing about. You might need to round up (for display) the amount needed to buy a loan part so that someone with £100.00 trying to buy a loan for £100.001 (but displayed as £100.00) doesn't get told he doesn't have enough money. The new site allows for arbitrarily splitting loan units so if you have a loan unit with £100.001 of principal remaining then it could be split into two - a £100 loan unit and a £0.001 loan unit. That's the unintended consequence of moving to precise figures that I need to think about. I could be that we keep a £10 minimum, so it would be split into a £90.001 unit and a £10 unit and the sale would go through on the first part. But it needs a lot more thought. Setting a minimum needs to be thought about carefully particularly since you would need to have exceptions for when loans are coming close to their end and a part which might have had a £20 capital value at purchase may have less than £10 of capital left in it. If you didn't have this exception and you set a £10 minimum for selling you preclude people from disposing of their holdings on the secondary market.
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Post by chris on Oct 9, 2014 9:38:22 GMT
The new site allows for arbitrarily splitting loan units so if you have a loan unit with £100.001 of principal remaining then it could be split into two - a £100 loan unit and a £0.001 loan unit. That's the unintended consequence of moving to precise figures that I need to think about. I could be that we keep a £10 minimum, so it would be split into a £90.001 unit and a £10 unit and the sale would go through on the first part. But it needs a lot more thought. Setting a minimum needs to be thought about carefully particularly since you would need to have exceptions for when loans are coming close to their end and a part which might have had a £20 capital value at purchase may have less than £10 of capital left in it. If you didn't have this exception and you set a £10 minimum for selling you preclude people from disposing of their holdings on the secondary market. Whilst true don't forget that loan units will also be aggregated, so it would have to be your total holdings in that loan were less than £10 not a singular loan unit as now. The £10 is also arbitrary so we could make it £1 or 1p. But as we've both said it does need more thought.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Oct 9, 2014 23:16:24 GMT
Hi Chris, The accrued interest for CWT (121) seems to be stuck on zero.
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Post by chris on Oct 10, 2014 6:35:47 GMT
Hi Chris, The accrued interest for CWT (121) seems to be stuck on zero. Resolved.
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