Post by high5 on Mar 24, 2020 22:55:50 GMT
Some thoughts on the recent developments.
Have received this by email:
The current pandemic and economic downturn are impacting borrowers worldwide. Lending companies are reacting and supporting borrowers by offering extensions where reasonable and appropriate. Also, some countries (e.g. Lithuania, Romania, and Spain with specific differences in implementation) have announced debt moratorium that allows borrowers to delay the repayment of debts.
Many lending companies on Mintos have been already offering loans with extensions to investors for a while. Starting from today, one by one we will reflect that lending companies have extensions functionality for all their outstanding and new loans. That means that when the borrower will ask for the extension and the lending company will agree to it, this loan will be reflected as extended also on Mintos. This will much better reflect the cash flows received from borrowers.
Investors can see in the Loan Details whether the schedule for a given loan can be extended. The indication of possible extension does not mean that the borrower has already extended the loan, it means that the loan can be extended subject to agreement between the lending comp any and the borrower.
A lending company offers an extension to the borrower in the ordinary course of the business, or if they agreed to do so upon borrower request to help the borrower service the loan, or if the local regulation requires them to do so (e.g. in case of debt moratorium).
The lending company reviews each case separately. If the extension is granted, it is entered into the lending company’s systems. The lending company then informs Mintos by sending in an API request information on the extension. Investors will know the loan is extended once the Loan Details show the extended repayment schedule. Investors will receive accrued interest till the moment of extension and will continue to earn the same interest throughout the remaining loan term.
We are convinced that the additional extension functionality is in the best interest of our investors, as it will bring greater support for borrowers as well as lending companies looking for liquidity to work through the existing turbulence in the markets worldwide.
If you have any questions, feel free to reach out at support@mintos.com.
Let's break it down...
"Also, some countries (e.g. Lithuania, Romania, and Spain with specific differences in implementation) have announced debt moratorium that allows borrowers to delay the repayment of debts." Borrowers (natural persons, not legal ones) So it means that if the loan goes 60 days into delay with a buyback, the LEGAL person is obligated to buy it back. In other cases - company goes into default.
"Starting from today, one by one we will reflect that lending companies have extensions functionality for all their outstanding and new loans."
Direct violation of the Assignee agreement clause 6.7. Only binding to countries mentioned above (e.g. Lithuania, Romania, and Spain) However, if you hold an indirect claim, you should check where you loan originator is located.
"That means that when the borrower will ask for the extension and the lending company will agree to it, this loan will be reflected as extended also on Mintos."
Investors hold from 75 to 95% of the loan value. And they decide nothing on the extension? Okay... moving along
"We are convinced that the additional extension functionality is in the best interest of our investors, as it will bring greater support for borrowers as well as lending companies looking for liquidity to work through the existing turbulence in the markets worldwide."
This time, Mintos, you are supporting primarily your Loan Originators. They will receive as many extensions as they like, as Investors will try to get rid of their loan parts on the secondary market.
Have received this by email:
The current pandemic and economic downturn are impacting borrowers worldwide. Lending companies are reacting and supporting borrowers by offering extensions where reasonable and appropriate. Also, some countries (e.g. Lithuania, Romania, and Spain with specific differences in implementation) have announced debt moratorium that allows borrowers to delay the repayment of debts.
Many lending companies on Mintos have been already offering loans with extensions to investors for a while. Starting from today, one by one we will reflect that lending companies have extensions functionality for all their outstanding and new loans. That means that when the borrower will ask for the extension and the lending company will agree to it, this loan will be reflected as extended also on Mintos. This will much better reflect the cash flows received from borrowers.
Investors can see in the Loan Details whether the schedule for a given loan can be extended. The indication of possible extension does not mean that the borrower has already extended the loan, it means that the loan can be extended subject to agreement between the lending comp any and the borrower.
A lending company offers an extension to the borrower in the ordinary course of the business, or if they agreed to do so upon borrower request to help the borrower service the loan, or if the local regulation requires them to do so (e.g. in case of debt moratorium).
The lending company reviews each case separately. If the extension is granted, it is entered into the lending company’s systems. The lending company then informs Mintos by sending in an API request information on the extension. Investors will know the loan is extended once the Loan Details show the extended repayment schedule. Investors will receive accrued interest till the moment of extension and will continue to earn the same interest throughout the remaining loan term.
We are convinced that the additional extension functionality is in the best interest of our investors, as it will bring greater support for borrowers as well as lending companies looking for liquidity to work through the existing turbulence in the markets worldwide.
If you have any questions, feel free to reach out at support@mintos.com.
Let's break it down...
"Also, some countries (e.g. Lithuania, Romania, and Spain with specific differences in implementation) have announced debt moratorium that allows borrowers to delay the repayment of debts." Borrowers (natural persons, not legal ones) So it means that if the loan goes 60 days into delay with a buyback, the LEGAL person is obligated to buy it back. In other cases - company goes into default.
"Starting from today, one by one we will reflect that lending companies have extensions functionality for all their outstanding and new loans."
Direct violation of the Assignee agreement clause 6.7. Only binding to countries mentioned above (e.g. Lithuania, Romania, and Spain) However, if you hold an indirect claim, you should check where you loan originator is located.
"That means that when the borrower will ask for the extension and the lending company will agree to it, this loan will be reflected as extended also on Mintos."
Investors hold from 75 to 95% of the loan value. And they decide nothing on the extension? Okay... moving along
"We are convinced that the additional extension functionality is in the best interest of our investors, as it will bring greater support for borrowers as well as lending companies looking for liquidity to work through the existing turbulence in the markets worldwide."
This time, Mintos, you are supporting primarily your Loan Originators. They will receive as many extensions as they like, as Investors will try to get rid of their loan parts on the secondary market.