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Post by brianac on May 28, 2016 13:24:57 GMT
Perhaps I've a very suspicious mind, but, suppose you wanted to buy some large loans on INPL, with the intention say, of selling them 2 days later to a friend, who could possibly then sell them to another friend .... and you wanted a loan that nobody was likely to interrupt the flow of to spoil your plan?
or could I be giving ideas?
Queue isn't moving now, I put 1/2 my parts on this morning and it's moved about 2UKP.
Brian
Edit; that won't work 'cause they won't pay the interest until security "pays up"
Ho Hum.
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ben
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Post by ben on May 28, 2016 13:28:57 GMT
A good test for SS this. I'm confident it will handled well. Let's face it, if one decent size default puts the whole platform in danger it doesn't say much about the platform.. This default by itself will not put the platform in danger, the provision fund is sufficient to cover it, and it will be a 100% loss, but if one of the other big ones defaults to then it will make it harder for SS
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Post by brianac on May 28, 2016 13:29:56 GMT
I would rather be holding performing loans, than defaulted loans, just incase the platform fails. In which case old terms and new, go out of the window. Surely iif platform fails new loans will be ringfenced and therefore O.K.? - old loans would fail with platform I think. ( as in be part of Lendy's assets) I'm sure wiser heads will correct me in due course. Brian
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Post by brianac on May 28, 2016 13:37:47 GMT
Snippity> Cant see it some how, its on the old t&cs so SS will cover any shortfall in capital to lenders. But do the buyers of this on the SM understand that SS are not obligated to pay any interest unless the sale raises enough capital. Maybe not i fear. And i'm sure my figures may well be conservative. Where did you get that from? p2pindependentforum.com/post/59555/threadWould seem to contradict that (apart from interest now accruing) Brian
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Post by earthbound on May 28, 2016 13:42:46 GMT
Snippity> Cant see it some how, its on the old t&cs so SS will cover any shortfall in capital to lenders. But do the buyers of this on the SM understand that SS are not obligated to pay any interest unless the sale raises enough capital. Maybe not i fear. And i'm sure my figures may well be conservative. Where did you get that from? p2pindependentforum.com/post/59555/threadWould seem to contradict that (apart from interest now accruing) Brian hi brian on the old t&cs money was lent to lendy ltd. Old Lendy Ltd was responsible for covering all repayments and shortfalls as it acted as both the borrower and the lender to SS lenders.
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Post by GSV3MIaC on May 28, 2016 13:49:04 GMT
I would rather be holding performing loans, than defaulted loans, just incase the platform fails. In which case old terms and new, go out of the window. I'm sure we all would, but the question (which others are demonstrating the answer to) is "would you rather be holding a defaulted loan which 'will probably' pay 12% (eventually), or idle cash which will (sure as eggs is eggs) pay nothing"? I would guess that once the supply of 'available money' is used up, people are not going to rush to transfer more just to buy this loan though (although come Tuesday, and interest looking for a home ..)
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Post by brianac on May 28, 2016 14:06:23 GMT
hi brian on the old t&cs money was lent to lendy ltd. Old Lendy Ltd was responsible for covering all repayments and shortfalls as it acted as both the borrower and the lender to SS lenders. Precisely, so Lendy are obligated to pay interest aswell as capital "Old Lendy Ltd was responsible for covering all repayments and shortfalls as it acted as both the borrower and the lender to SS lenders." "Old If a loan went into Default, Lendy Ltd continued to pay interest at the normal rate of 1% per month. " Brian
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Post by earthbound on May 28, 2016 14:14:32 GMT
hi brian on the old t&cs money was lent to lendy ltd. Old Lendy Ltd was responsible for covering all repayments and shortfalls as it acted as both the borrower and the lender to SS lenders. Precisely, so Lendy are obligated to pay interest aswell as capital "Old Lendy Ltd was responsible for covering all repayments and shortfalls as it acted as both the borrower and the lender to SS lenders." "Old If a loan went into Default, Lendy Ltd continued to pay interest at the normal rate of 1% per month. " Brian hi brian SS sent out a general email message on the 11th may, changing the way interest is paid to defaulted loans, We have made a slight change to our operating procedures for ‘loans in default’ (we have only ever had one to date) - once we declare a loan to be in default, instead of crediting interest to investor's accounts monthly, interest will accrue on account and will be paid once the loan capital is recovered. This rule will only apply to the loan in default and not other loans, which will operate as usual. Loans in default can continue to be traded on the secondary market. Our solicitors have advised us to implement this as the FCA perceives Lendy's own covering of the interest as a potential cashflow risk to the sustainability of the platform.
Im not 100% sure whether this covers all loans old or new t&cs but it certainly does not say it "does not" so i would err on the side of caution, i would guess it covers all loans, due to the FCA rules around sustainability. edit. afaik lendy/SS are free to change their t&cs at any time they like
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Steerpike
Member of DD Central
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Post by Steerpike on May 28, 2016 14:15:03 GMT
Now close to £90k on the SM Only 5% so the folk holding 95% of the loan are either comfortable with the prospects, ignorant of the default, or don't see a realistic chance of selling.
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Post by ogwellian on May 28, 2016 14:22:26 GMT
Precisely, so Lendy are obligated to pay interest aswell as capital "Old Lendy Ltd was responsible for covering all repayments and shortfalls as it acted as both the borrower and the lender to SS lenders." "Old If a loan went into Default, Lendy Ltd continued to pay interest at the normal rate of 1% per month. " Brian hi brian SS sent out a general email message on the 11th may, changing the way interest is paid to defaulted loans, We have made a slight change to our operating procedures for ‘loans in default’ (we have only ever had one to date) - once we declare a loan to be in default, instead of crediting interest to investor's accounts monthly, interest will accrue on account and will be paid once the loan capital is recovered. This rule will only apply to the loan in default and not other loans, which will operate as usual. Loans in default can continue to be traded on the secondary market. Our solicitors have advised us to implement this as the FCA perceives Lendy's own covering of the interest as a potential cashflow risk to the sustainability of the platform.
Im not 100% sure whether this covers all loans old or new t&cs but it certainly does not say it "does not" so i would err on the side of caution, i would guess it covers all loans, due to the FCA rules around sustainability. edit. afaik lendy/SS are free to change their t&cs at any time they like The red 'default' banner clearly says no more interest payments until sale. That's one of the two reasons why I sold yesterday when the default was notified.
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Post by earthbound on May 28, 2016 14:27:57 GMT
hi brian SS sent out a general email message on the 11th may, changing the way interest is paid to defaulted loans, We have made a slight change to our operating procedures for ‘loans in default’ (we have only ever had one to date) - once we declare a loan to be in default, instead of crediting interest to investor's accounts monthly, interest will accrue on account and will be paid once the loan capital is recovered. This rule will only apply to the loan in default and not other loans, which will operate as usual. Loans in default can continue to be traded on the secondary market. Our solicitors have advised us to implement this as the FCA perceives Lendy's own covering of the interest as a potential cashflow risk to the sustainability of the platform.
Im not 100% sure whether this covers all loans old or new t&cs but it certainly does not say it "does not" so i would err on the side of caution, i would guess it covers all loans, due to the FCA rules around sustainability. edit. afaik lendy/SS are free to change their t&cs at any time they like The red 'default' banner clearly says no more interest payments until sale. That's one of the two reasons why I sold yesterday when the default was notified. just checked and quite correct, i had to zoom in to 300% to see the small stuff. 
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Post by Deleted on May 28, 2016 14:51:10 GMT
A good test for SS this. I'm confident it will handled well. Let's face it, if one decent size default puts the whole platform in danger it doesn't say much about the platform.. This default by itself will not put the platform in danger, the provision fund is sufficient to cover it, and it will be a 100% loss, but if one of the other big ones defaults to then it will make it harder for SS I think some eople have strange ideas here around. A default is unfortunately part of the business, and certainly SS knows very well this might and will happen over time. I see zero possibilities of this creating too much trouble. We are still in a relatively positive environment and a sale of the security will be done. The recovery will certainly be sufficient not to make too a deep dent into SS accounts (I am ready to bet it will be more than 60% of the estimated value, so no big trouble ahead)
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Post by GSV3MIaC on May 28, 2016 14:57:10 GMT
This default by itself will not put the platform in danger, the provision fund is sufficient to cover it, and it will be a 100% loss, but if one of the other big ones defaults to then it will make it harder for SS .. I think there is a 'not' missing from that sentence, since it certainly won't be a 100% loss (well OK, it'll be 100% of the loss, but not 100% of the loan, or the provision fund, or the GNP of Tibet, or whatever).
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Post by brianac on May 28, 2016 16:30:03 GMT
Yes I've already agreed that they won't pay interest until the sale of the asset, but they will (IMHO) still be obligated to pay the interest even if the asset doesn't cover it all, as the loan is still to Lendy ltd, not to the borrower. (unless of course they go under with the loan - but we have already established that that is unlikely)
as discussed New T&C's is a different case.
Brian
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Post by dualinvestor on May 28, 2016 17:04:42 GMT
Yes I've already agreed that they won't pay interest until the sale of the asset, but they will (IMHO) still be obligated to pay the interest even if the asset doesn't cover it all, as the loan is still to Lendy ltd, not to the borrower. (unless of course they go under with the loan - but we have already established that that is unlikely) as discussed New T&C's is a different case. Brian Why would that be unlikely (sorry if this has been discussed before)? Dealing with the loan first the valuation is £2.43million and the outstanding loan is £1.7million, the valuation is 70% of OMV, the sale will be distressed or forced sale price. The provision fund is £2million odd, held, according to the SS web site in a company named Lendy Provision Reserve Ltd, the same company listed on the Companies House web site as being gazetted for striking off on 19th April (discontinued on 20th April but sad this makes up exactly half of the entries of a company incorporated on 20 January 2015 with £100 share capital). There are no charges registered on this company in favour of Lendy Limited, and no accounts filed, not that there are any due. The capital and reserves of Lendy Limited at 31 December 2014 (the last date for which they are obliged to be filed, the 2015 not for a few months yet) show capital and reserves of £280k, the issued share capital has incresed (according to the latest annual return to £100,000 from £1, filed on 22 December 2015), no statement of capital has been filed so according to the public record, subject to trading activity in the last 17 months, Lendy Ltd has capital and reserves of £380k against a potential loss of up to £1.7 million.
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