benaj
Member of DD Central
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Post by benaj on Apr 11, 2019 11:03:53 GMT
Lately, I learned the risk of same borrower of multiple overdue loans. I observe these events on multiple / cross platforms, whether it is self select loans / auto select accounts. It seems this is a tricky situation for p2p platforms to handle at the moment. The security is not being enforced while there are active linked loans.
How can we as lenders protect ourselves and minimise this risk?
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pom
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Post by pom on Apr 11, 2019 11:29:43 GMT
Its' called DD - read the loan details and keep an eye out for the same borrowers cropping up. Some (can't speak for all) platforms will specify if the borrower has previous loans with them. Across-platforms you're on your own, tho the biggest ones are usually pretty easy to spot
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Post by mrclondon on Apr 11, 2019 11:33:40 GMT
How can we as lenders protect ourselves and minimise this risk? There really is no justification for platforms hiding borrower identity whilst insisting lenders do their own due dilligence to assess the risk of loans.
The obvious action with respect to self select platforms is to moan loudly on here about the lack of identification of borrowers by the platform ... it can be done whilst maintaining the crazy fig-leaf of borrower "privacy" by assigning a borrower id. The problem is even then, as happened on COL, the platform would be tempted to issue a new id for each SPV, not one per controlling director.
However, even differentiating at the level of borrower principals is inadequate. There are at least two firms of architects (who are providing the raw data to RICS surveyors for residual value valuations) that I view with a degree of suspicion, there are a number of loan introducers who have questionable motives (the AC 2014 bridging loan introducer is the most notorious example, but there are several others), and finally there are (loose) connections between borrower principals (i.e. their 'mates') who tend to behave similiarly (think SD/GT/AB/PD etc).
With hindsight, I'm afraid to say that I'm increasingly viewing p2p over recent years as a golden opportunity for those borrowers/brokers/consultants with a looser grip on ethics to play games with our money.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 11, 2019 11:52:16 GMT
Lately, I learned the risk of same borrower of multiple overdue loans. I observe these events on multiple / cross platforms, whether it is self select loans / auto select accounts. It seems this is a tricky situation for p2p platforms to handle at the moment. The security is not being enforced while there are active linked loans. How can we as lenders protect ourselves and minimise this risk?On this DD aspect of lending we shouldn't have to benaj , of course, if the Platform/s possess even basic honesty, and I don't believe it is that "tricky" for them to know and divulge either. Same Borrower/s over multiple loans on multiple Platforms should obviously be clearly declared by a Platform possessing of a modicum of integrity when offering a new loan. The "Valuation" and subsequent LTV is supposed to be our security and the patronising BS we get accordingly is " No need for you to know Idiot Lender about how many loans this Borrower has on how many Platforms, the 'Professional' Valuation will cover any default."Those serial perpetrators to AVOID, with a long and distinguished history of utter dishonesty are well documented on here.
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