stevio
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Post by stevio on Mar 1, 2017 20:03:52 GMT
The PF was funded from the fee of the loan not from interest. That's irrelevant. SS can choose to replenish the PF from wherever they wish. The message I'm telling you is that Defaults are Good.Are you the guy who is also trying to sell snow to Eskimos?
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GeorgeT
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Post by GeorgeT on Mar 1, 2017 21:07:43 GMT
I thought some might be interested in re-visiting the forum Poll about the outcome of this. PBL020 - How much will we get back? - FORUM POLL The correct answer was the last one - "100% of capital plus interest" Only 15% of forum users got it right. Shows you what us 'experts' on the forum know! |
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adrianc
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Post by adrianc on Mar 1, 2017 21:40:26 GMT
I thought some might be interested in re-visiting the forum Poll about the outcome of this. PBL020 - How much will we get back? - FORUM POLL The correct answer was the last one - "100% of capital plus interest" Only 15% of forum users got it right. Shows you what us 'experts' on the forum know! There's a strong argument that the 42% who voted "100% because SS used PF" were right, too, for a total of 68%* * - gotta love rounding...
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ben
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Post by ben on Mar 1, 2017 21:57:21 GMT
I thought some might be interested in re-visiting the forum Poll about the outcome of this. PBL020 - How much will we get back? - FORUM POLL The correct answer was the last one - "100% of capital plus interest" Only 15% of forum users got it right. Shows you what us 'experts' on the forum know! Don't forget though this is the first proper default an in relatively good times, SS could afford to pay by using funds from other loans, the problem becomes when SS has multiple defaults, the garden centre was probably not the worst loan on SS and after costs it probably cost SS (well us) about £500/600K.
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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 Mar 1, 2017 22:01:07 GMT
I thought some might be interested in re-visiting the forum Poll about the outcome of this. PBL020 - How much will we get back? - FORUM POLL The correct answer was the last one - "100% of capital plus interest" Only 15% of forum users got it right. Shows you what us 'experts' on the forum know! There's a strong argument that the 42% who voted "100% because SS used PF" were right, too, for a total of 68%* * - gotta love rounding...Rounding from the most significant digit backwards, is that allowed?
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elliotn
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Post by elliotn on Mar 2, 2017 0:06:16 GMT
The auditors should have raised an eyebrow at 100% loan to purchase being marketed as 70% ltv. I know SS get business by funding professional fees, PP and even working capital (not to mention our retained interest) but lenders must be notified of this to inform their decisions. In what capacity were the "auditors" acting? What, if any, Auditing standard, did they comply with? Where is a copy of their report? Who did the auditors report to? The company? The Directors? The shareholders? At the time this loan was made there were two directors, two shareholders who happen to be the same people now. So many questions arising from a simple comment, so few answers  I can't dig out the email at the moment (on my mobile email client) and I'm not sure George will answer the questions to your satisfaction. SS notified us that the auditors had taken a look back over the deal and ok'd the procedures extant at the time, whilst I didn't over analyse it I took that to mean: - auditors acting in capacity of fulfilling additional professional service for their client; - ad hoc work that may not be to an official auditing standard; - I do not know what form the report took, no copy was provided in the summary to investors; - it sounds like the auditors confirmed their findings to Lendy Ltd, whether that was to the directors or shareholders we were not made aware. Edit - shimself quoted the role of the auditors above and has asked about SS shareholding in the borrower. My point is regarding SS providing loans at 100%+ of purchase value and not informing investors as with this loan rather than the t&c of the 020 audit review - I'm happy to redact the mention of the review if that will make my point more salient. "Our auditors have conducted a thorough review of this loan and are satisfied that Lendy Ltd advanced the loan on a sound commercial basis and that our underwriting and due diligence were conducted in a stringent and thorough way".
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ben
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Post by ben on Mar 3, 2017 20:41:05 GMT
In what capacity were the "auditors" acting? What, if any, Auditing standard, did they comply with? Where is a copy of their report? Who did the auditors report to? The company? The Directors? The shareholders? At the time this loan was made there were two directors, two shareholders who happen to be the same people now. So many questions arising from a simple comment, so few answers I can't dig out the email at the moment (on my mobile email client) and I'm not sure George will answer the questions to your satisfaction. SS notified us that the auditors had taken a look back over the deal and ok'd the procedures extant at the time, whilst I didn't over analyse it I took that to mean: - auditors acting in capacity of fulfilling additional professional service for their client; - ad hoc work that may not be to an official auditing standard; - I do not know what form the report took, no copy was provided in the summary to investors; - it sounds like the auditors confirmed their findings to Lendy Ltd, whether that was to the directors or shareholders we were not made aware. Edit - shimself quoted the role of the auditors above and has asked about SS shareholding in the borrower. My point is regarding SS providing loans at 100%+ of purchase value and not informing investors as with this loan rather than the t&c of the 020 audit review - I'm happy to redact the mention of the review if that will make my point more salient. "Our auditors have conducted a thorough review of this loan and are satisfied that Lendy Ltd advanced the loan on a sound commercial basis and that our underwriting and due diligence were conducted in a stringent and thorough way". Obviously the auditors are either not independent or pretty useless, it was fairly obvious from the start that the figures did not add up, and that was before any interest was paid.
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Post by harryvederci on Mar 4, 2017 13:06:36 GMT
My point is regarding SS providing loans at 100%+ of purchase value
Irony...
If you took out the PBL/DFL's where SS have funded 100% (+) of the purchase price this would decimate the loan book & there would be sod all very few loans to invest in, so its a double edged sword for investors. Isnt this why SS can underwrite business at 18% as opposed to borrowers taking readily available 12% pa rate bridging finance, the latter which I believe is restricted to ceiling 75% of purchase price.
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elliotn
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Post by elliotn on Mar 4, 2017 13:31:32 GMT
Not ironic. I would better appraise how much I would fund each loan with information that other platforms provide.
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ben
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Post by ben on Mar 4, 2017 21:01:33 GMT
Not ironic. I would better appraise how much I would fund each loan with information that other platforms provide. I can not think of any platform that regulary puts the purchase price in the loan decription, FS has in the odd loan but not as a general rule.
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am
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Post by am on Mar 4, 2017 23:25:57 GMT
Not ironic. I would better appraise how much I would fund each loan with information that other platforms provide. I can not think of any platform that regulary puts the purchase price in the loan decription, FS has in the odd loan but not as a general rule. Possibly AC. Their credit reports are better than what one gets on the other platforms I use.
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elliotn
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Post by elliotn on Mar 5, 2017 2:01:09 GMT
Not ironic. I would better appraise how much I would fund each loan with information that other platforms provide. I can not think of any platform that regulary puts the purchase price in the loan decription, FS has in the odd loan but not as a general rule. AC as am said. Others less consistently, even SS on occasion if doesn't impair the 70% ltv 
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