nick
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Post by nick on May 27, 2016 13:58:12 GMT
Quick... get it on the SM.. someones buying it, i can only assume they are colour blind and short sighted.  : It's an Old Ts&Cs loan, so SS have pledged to repay it no matter what happens. I expect the SM activity will be very different for the first New Ts&Cs loan that defaults. But will it be obvious by then which loans are under which Ts&Cs?  When did SS pledge to repay any old T&C loans? Why did SS opt to take on all the credit risk on these loans?
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Post by ogwellian on May 27, 2016 13:58:31 GMT
Just sold all mine and upped my prefunding for tomorrow's two. No matter the T&Cs I prefer a photo to a big red 'Loan in Default' banner on my loan list!!
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jonno
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nil satis nisi optimum
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Post by jonno on May 27, 2016 14:02:05 GMT
Just sold all mine and upped my prefunding for tomorrow's two. No matter the T&Cs I prefer a photo to a big red 'Loan in Default' banner on my loan list!! I'm really not sure that upping your prefunding for tomorrows tiddlers will make the slightest difference 
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Post by earthbound on May 27, 2016 14:02:59 GMT
Quick... get it on the SM.. someones buying it, i can only assume they are colour blind and short sighted. : It's an Old Ts&Cs loan, so SS have pledged to repay it no matter what happens. I expect the SM activity will be very different for the first New Ts&Cs loan that defaults. But will it be obvious by then which loans are under which Ts&Cs? Phew.. thanks mike, thats ok then, ill pop over now and hoover up the last 6k. 
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goopy
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Post by goopy on May 27, 2016 14:06:23 GMT
It will be interesting to see how close the LTV of 70% is to the actual sale price.
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Post by ogwellian on May 27, 2016 14:09:09 GMT
Just sold all mine and upped my prefunding for tomorrow's two. No matter the T&Cs I prefer a photo to a big red 'Loan in Default' banner on my loan list!! I'm really not sure that upping your prefunding for tomorrows tiddlers will make the slightest difference To continue getting monthly interest on my capital, rather than waiting until the garden centre is sold?
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Post by earthbound on May 27, 2016 14:09:45 GMT
It will be interesting to see how close the LTV of 70% is to the actual sale price. i also wonder whether the planning application was ever granted, (update @ 2 months) cant find it in the updates.
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jonno
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nil satis nisi optimum
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Post by jonno on May 27, 2016 14:15:43 GMT
I'm really not sure that upping your prefunding for tomorrows tiddlers will make the slightest difference To continue getting monthly interest on my capital, rather than waiting until the garden centre is sold? Erm...... I fully appreciate why you've sold the defaulted loan, but once the prefund scale back takes effect on such small loans, upping your prefund level won't get you any more of them unless perhaps you are bidding at the lowest levels permitted.
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ben
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Post by ben on May 27, 2016 14:16:02 GMT
I'm really not sure that upping your prefunding for tomorrows tiddlers will make the slightest difference To continue getting monthly interest on my capital, rather than waiting until the garden centre is sold? I think he meant it does not matter what your prefunding is with the amount we will probably only get similar to last weeks loans.
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mikes1531
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Post by mikes1531 on May 27, 2016 14:21:27 GMT
earthbound : It's an Old Ts&Cs loan, so SS have pledged to repay it no matter what happens. I expect the SM activity will be very different for the first New Ts&Cs loan that defaults. But will it be obvious by then which loans are under which Ts&Cs? When did SS pledge to repay any old T&C loans? Why did SS opt to take on all the credit risk on these loans? : Some time ago, probably before there was talk of new Ts&Cs and before there was a PF. I can't be sure why, but it probably was to encourage people to invest. A bit of digging in the forum archive should turn up the discussion. That pledge might also have been behind why they brought in the new Ts&Cs, though there were other reasons for that, including FCA regulation and lenders wanting it. (Lenders wanted it because under the old 'pledge' regime some felt there was no point in choosing which loans to invest in because if SS had a bad loan it would hit the viability of the whole platform, affecting investors who hadn't invested in the bad loan.)
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registerme
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Post by registerme on May 27, 2016 14:25:49 GMT
When did SS pledge to repay any old T&C loans? Why did SS opt to take on all the credit risk on these loans? : Some time ago, probably before there was talk of new Ts&Cs and before there was a PF. I can't be sure why, but it probably was to encourage people to invest. A bit of digging in the forum archive should turn up the discussion. That pledge might also have been behind why they brought in the new Ts&Cs, though there were other reasons for that, including FCA regulation and lenders wanting it. (Lenders wanted it because under the old 'pledge' regime some felt there was no point in choosing which loans to invest in because if SS had a bad loan it would hit the viability of the whole platform, affecting investors who hadn't invested in the bad loan.) Under the old Ts&Cs lenders were lending to Lendy Ltd, not to the borrowers themselves. To make the platform compliant with FCA regs (36H iirc), to be a "real" P2P platform, this had to change so that lenders lent directly to the borrowers, with the platform simply acting as the intermediary. From the lenders perspective, effectively this meant that under the old Ts&Cs Lendy Ltd was (and is) on the hook for any defaults. Under the new Ts&Cs they are not, the end borrower is. Though I echo the comments about lack of clarity on the platform as to which loans operate under which set of Ts&Cs.
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nick
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Post by nick on May 27, 2016 14:39:09 GMT
nick : Some time ago, probably before there was talk of new Ts&Cs and before there was a PF. I can't be sure why, but it probably was to encourage people to invest. A bit of digging in the forum archive should turn up the discussion. That pledge might also have been behind why they brought in the new Ts&Cs, though there were other reasons for that, including FCA regulation and lenders wanting it. (Lenders wanted it because under the old 'pledge' regime some felt there was no point in choosing which loans to invest in because if SS had a bad loan it would hit the viability of the whole platform, affecting investors who hadn't invested in the bad loan.) Under the old Ts&Cs lenders were lending to Lendy Ltd, not to the borrowers themselves. To make the platform compliant with FCA regs (36H iirc), to be a "real" P2P platform, this had to change so that lenders lent directly to the borrowers, with the platform simply acting as the intermediary. From the lenders perspective, effectively this meant that under the old Ts&Cs Lendy Ltd was (and is) on the hook for any defaults. Under the new Ts&Cs they are not, the end borrower is. Though I echo the comments about lack of clarity on the platform as to which loans operate under which set of Ts&Cs. I don't think that is correct. The issue with the old T&C's is that investors were not only exposed to the credit risk of the underlying loan (because whilst the loan was to Lendy, they passed on credit risk to the investor ie if the notional underlying loan was not repaid by the borrower, Lendy would transmit the loss to its lender) but also to Lendy's own credit risk (ie if Lendy went bust for any other reason, borrower would suffer loss as the loan was to Lendy). The new T&C's obviously cuts out Lendy's credit risk from the equation (although there is still platform risk). It would seem very generous of SS to subsequently assume all the credit risk of the loan under the old T&C's, this is certainty not in the old T&C's themselves and I'm struggling to find any communication from SS with this pledge - but maybe I haven't looked hard enough......
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jcb208
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Post by jcb208 on May 27, 2016 14:42:58 GMT
It is good to know that Savingstream are making it very clear once a loan has defaulted,Cant really mistake a big red default banner
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 27, 2016 14:49:52 GMT
Under the old Ts&Cs lenders were lending to Lendy Ltd, not to the borrowers themselves. To make the platform compliant with FCA regs (36H iirc), to be a "real" P2P platform, this had to change so that lenders lent directly to the borrowers, with the platform simply acting as the intermediary. From the lenders perspective, effectively this meant that under the old Ts&Cs Lendy Ltd was (and is) on the hook for any defaults. Under the new Ts&Cs they are not, the end borrower is. Though I echo the comments about lack of clarity on the platform as to which loans operate under which set of Ts&Cs. I don't think that is correct. The issue with the old T&C's is that investors were not only exposed to the credit risk of the underlying loan (because whilst the loan was to Lendy, they passed on credit risk to the investor ie if the notional underlying loan was not repaid by the borrower, Lendy would transmit the loss to its lender) but also to Lendy's own credit risk (ie if Lendy went bust for any other reason, borrower would suffer loss as the loan was to Lendy). The new T&C's obviously cuts out Lendy's credit risk from the equation (although there is still platform risk). It would seem very generous of SS to subsequently assume all the credit risk of the loan under the old T&C's, this is certainty not in the old T&C's themselves and I'm struggling to find any communication from SS with this pledge - but maybe I haven't looked hard enough......
'Old
Lendy Ltd was responsible for covering all repayments and shortfalls as it acted as both the borrower and the lender to SS lenders.'p2pindependentforum.com/post/59555/threadThe third point (as mentioned in a previous post) is that if there is a default on the loan and the sale of the asset does not cover the the full repayment due to the saver/lender then Saving Stream will cover any shortfall. The saver/lender's return is a set arrangement with Saving Stream and is not dependant on whether the sale of the asset that a loan is secured against covers the loan + interesp2pindependentforum.com/post/1666/thread(Like that thread -Didnt SS take a kickin initially, compared to popularity they generally get now)
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registerme
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Post by registerme on May 27, 2016 14:50:19 GMT
Under the old Ts&Cs lenders were lending to Lendy Ltd, not to the borrowers themselves. To make the platform compliant with FCA regs (36H iirc), to be a "real" P2P platform, this had to change so that lenders lent directly to the borrowers, with the platform simply acting as the intermediary. From the lenders perspective, effectively this meant that under the old Ts&Cs Lendy Ltd was (and is) on the hook for any defaults. Under the new Ts&Cs they are not, the end borrower is. Though I echo the comments about lack of clarity on the platform as to which loans operate under which set of Ts&Cs. I don't think that is correct. The issue with the old T&C's is that investors were not only exposed to the credit risk of the underlying loan (because whilst the loan was to Lendy, they passed on credit risk to the investor ie if the notional underlying loan was not repaid by the borrower, Lendy would transmit the loss to its lender)..... My understanding / recollection is different to yours, but I am happy to be corrected or to have it confirmed either way  . Personally speaking I don't think I have any loans left under the old Ts&Cs, but see my previous comment about a lack of clarity around that on the platform / website. EDIT: Crossed with ilmoro's post .
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. Personally speaking I don't think I have any loans left under the old Ts&Cs, but see my previous comment about a lack of clarity around that on the platform / website.