jjc
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Post by jjc on Mar 2, 2015 18:26:47 GMT
This is a large loan with a fairly ordinary interest rate. Previously, underwriters would discount a loan of this size by about 0.5% to generate lender investment. With no discounting mechanism on the new software it could be stuck for a while yet.
Every loan over £1m at 10% or less had underwriter discounting at some point.
One imagines AC are happy to have a wide choice of loans available on the AM, grub for new lenders does make sense. As long as the loans are selling down tidily (this one is) it may not be a bad thing in AC’s view. On a growing platform I’m not sure it’s realistic to expect the existing lender base to snap up 100% of all new loans on dd.
How underwriters see this is another question.
What I find frustrating is that AC promise something (markdowns will be back Jan wasn’t it?) & then don’t deliver (or even comment). Lenders are left in the lurch, memories sour. The what can you believe & what can’t you equation gets worse. Not good.
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mikes1531
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Post by mikes1531 on Mar 2, 2015 22:51:08 GMT
What I find frustrating is that AC promise something (markdowns will be back Jan wasn’t it?) & then don’t deliver (or even comment). Lenders are left in the lurch, memories sour. The what can you believe & what can’t you equation gets worse. Not good. In response to a posting asking why it was taking so long to reinstate a feature that existed -- and appeared to be working well -- before the website was revamped, Chris posted a response that included some of the issues he was struggling with to make discounting fair -- my word, not his -- to all concerned. It included a number of situations that I had not thought of. Unfortunately, I'm not very good at searching the forum archives, so I can't provide a link to said posting. Perhaps someone more talented than I could do that.
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sqh
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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 Mar 2, 2015 22:58:12 GMT
What I find frustrating is that AC promise something (markdowns will be back Jan wasn’t it?) & then don’t deliver (or even comment). Lenders are left in the lurch, memories sour. The what can you believe & what can’t you equation gets worse. Not good. In response to a posting asking why it was taking so long to reinstate a feature that existed -- and appeared to be working well -- before the website was revamped, Chris posted a response that included some of the issues he was struggling with to make discounting fair -- my word, not his -- to all concerned. It included a number of situations that I had not thought of. Unfortunately, I'm not very good at searching the forum archives, so I can't provide a link to said posting. Perhaps someone more talented than I could do that. , There is this post from October. p2pindependentforum.com/post/26326
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mikes1531
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Post by mikes1531 on Mar 2, 2015 23:11:52 GMT
In response to a posting asking why it was taking so long to reinstate a feature that existed -- and appeared to be working well -- before the website was revamped, Chris posted a response that included some of the issues he was struggling with to make discounting fair -- my word, not his -- to all concerned. It included a number of situations that I had not thought of. Unfortunately, I'm not very good at searching the forum archives, so I can't provide a link to said posting. Perhaps someone more talented than I could do that. , There is this post from October. p2pindependentforum.com/post/26326That posting explains why the feature was missing from the revamped platform at the time of the revamp, but that's not the posting I was looking for. The one I am seeking is where Chris explained why the feature hadn't reappeared yet. It was a lot more recent, possibly even February.
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jjc
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Post by jjc on Mar 2, 2015 23:32:39 GMT
Blimey mikes1531 I thought sqh played a blinder digging that one out. Original sin & all that. My recollection was that Chris had made a comment back in Dec saying markdowns would be returning in Jan, if so click on his username & go through his recent postings (Feb ones will appear quickly). Sorry, not more talented here. |
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Post by pepperpot on Mar 3, 2015 1:24:51 GMT
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mikes1531
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Post by mikes1531 on Mar 3, 2015 3:42:10 GMT
... click on his username & go through his recent postings (Feb ones will appear quickly). That was the right technique. I found the message I was looking for... Mark down is a popular option amongst more sophisticated lenders and will be making a return sooner or later. I'm awaiting a specification to be agreed by the rest of the directors as there's a lot of periphery considerations - how does it affect underwriters who have to sell a proportion of their holdings, how would users specify a mark down within their automatic accounts, should they even be allowed to, if not how does the MLIA then affect the other account's liquidity, should automated accounts buy discounted loan units, which users from which accounts should get priority for buying them, etc. Take the example of a loan where two lenders have loan units for sale, one with a discount and one without. If there are two lenders willing to buy but one will only buy if there's a discount offered, then for the platform and the sellers the best thing to do would be to match both sales every time. But that's not necessarily fair for the buyers where a random factor should sometimes allow both sales, sometimes only sell the discounted loan units to the lender not requiring a discount and leaving the other seller and buyer without any sale. That's fair for one buyer and fine with one seller but not optimal for the other buyer and seller. So it'll make a return but only when its ready and when we feel we have suitable answers to those points.
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