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Post by davefoz on Nov 18, 2022 13:42:30 GMT
Would like to ask for clarity from those invested in this loan; as it may have set a very unwanted precedent.
It appears the loan has been extended at what is now, an uncompetitive rate of return for investors. Given the low rate of return - investors would not be able to sell on the secondary market.
The New Loan to Values have also been increased for Tranche A to 44% from 40% - and for Tranche B to 61% from 54%.
I may have read this wrong as I am not invested in the loan. However if this is what has occurred it is most concerning. Loan appears to have been extended on less favourable terms with no opt out.
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billt
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Post by billt on Nov 18, 2022 16:36:39 GMT
Just put my Denbar loan for sale on the Secondary market LTV 43%
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Greenwood2
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Post by Greenwood2 on Nov 18, 2022 20:55:14 GMT
Just put my Denbar loan for sale on the Secondary market LTV 43% Mine sold I assume back to Somo? I wasn't particularly bothered if it sold, looked OK, but maybe the current rate was a bit low.
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billt
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Post by billt on Nov 19, 2022 12:03:49 GMT
interesting put mine up for sale, not sold and can't see it for sale on the secondary market, probably in the pipeline.
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IFISAcava
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Post by IFISAcava on Nov 19, 2022 15:57:46 GMT
interesting put mine up for sale, not sold and can't see it for sale on the secondary market, probably in the pipeline. only the 15 loans at the top of the queue are listed at any time
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Post by Ace on Nov 19, 2022 16:36:42 GMT
interesting put mine up for sale, not sold and can't see it for sale on the secondary market, probably in the pipeline. only the 15 loans at the top of the queue are listed at any time It seems to be the 10 loans at the top plus duplicates, rather than top 15.
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IFISAcava
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Post by IFISAcava on Nov 19, 2022 17:14:04 GMT
only the 15 loans at the top of the queue are listed at any time It seems to be the 10 loans at the top plus duplicates, rather than top 15. Yes, could well be that - I never got an answer from SoMo when I asked them about it, and we never know how many loans are NOT shown.
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michaelc
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Post by michaelc on Nov 19, 2022 19:40:01 GMT
What is the purpose of hiding loans on the secondary market?
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Post by Ace on Nov 19, 2022 20:08:33 GMT
What is the purpose of hiding loans on the secondary market? It made no sense at all to me, bit it was explained here by the platform rep.
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Post by davefoz on Nov 20, 2022 9:46:08 GMT
Whilst I am a fan of SOMO, They do seem to make it up as they go along. It’s this ambiguity which may be eroding trust in the platform.
I firmly believe the platform needs a clear policy as regards loan terms and when default interest kicks in. It needs to enable investors to sell extended loans and finally it needs to manage the secondary market without having the ridiculous scenario of investors placing loans on the market (and forfeiting interest) which are invisible to everyone else.
One other thing they appear to do, is release loans in batch’s. Kidding investors into the false impression that there is increased demand for a loan (with better exit chances on the secondary).
IMHO Sentiment could shift very quickly if they don’t get to grips with these issues which have certainly made me reassess future investment.
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Greenwood2
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Post by Greenwood2 on Nov 20, 2022 10:59:55 GMT
What is the purpose of hiding loans on the secondary market? It made no sense at all to me, bit it was explained here by the platform rep. That link says that Somo sometimes restrict to 10 loans per investor on the SM, not 10 (distinct) loans in total. I've never had an SM sale not visible, but I don't sell often.
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Post by Ace on Nov 20, 2022 12:12:27 GMT
It made no sense at all to me, bit it was explained here by the platform rep. That link says that Somo sometimes restrict to 10 loans per investor on the SM, not 10 (distinct) loans in total. I've never had an SM sale not visible, but I don't sell often. Yes, they did say that, but also said earlier that it was limited to 10. You quoted that post here, which they subsequently removed. It seems that SoMo themselves are confused about how the SM listng restrictions actually work. In practice, I've seen nothing to contradict the theory that is restricted to a maximum of 10 different loans, but allows some duplicates such that the total can be more than 10.
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billt
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Post by billt on Nov 20, 2022 12:45:17 GMT
Will be interesting to see how long it takes for my Denbar loan to appear on the Secondary Market.
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Post by davefoz on Nov 20, 2022 13:52:36 GMT
Will be interesting to see how long it takes for my Denbar loan to appear on the Secondary Market. It is already there but if the present regime prevents more than 1/2 listings, whilst it might appear only £5,000 / £10,000 is for sale there may be £100,000’s waiting to sell not appearing. Thankfully I’m not in this loan but if I was I’d be complaining to the Ombudsman, as the terms of the loan have been materially change to the detriment of investors.
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ilmoro
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Post by ilmoro on Nov 20, 2022 13:53:39 GMT
Whilst I am a fan of SOMO, They do seem to make it up as they go along. It’s this ambiguity which may be eroding trust in the platform. I firmly believe the platform needs a clear policy as regards loan terms and when default interest kicks in. It needs to enable investors to sell extended loans and finally it needs to manage the secondary market without having the ridiculous scenario of investors placing loans on the market (and forfeiting interest) which are invisible to everyone else. One other thing they appear to do, is release loans in batch’s. Kidding investors into the false impression that there is increased demand for a loan (with better exit chances on the secondary). IMHO Sentiment could shift very quickly if they don’t get to grips with these issues which have certainly made me reassess future investment. Are they making it up as they go along or is it just they have a different concept to lenders? They never intended to have an SM, they expect lenders to invest to term but recognised that some lenders might need to exit due to circumstances - so have provided a limited mechanism to do so. The limiting of loan sales would seem consistent with that as is the forfeit of interest to dissuade 'flipping' SOMO is not true P2P, the platform is the borrower & lender ... how they manage their exposure and lender demand by staged release is surely consistent with their underlying business model. Perhaps they need to make it clearer that availability is managed (It similar to AC AA accounts feeding loans into the MLA SM based on the AA own objectives) Platforms will never have a clear policy on default interest ... its always going to be discretionary based on circumstance. Platforms have to be fair to both sides of the equation lender & borrower ... sticking default interest on just because a certain date has been hit can be as detrimental to lenders as borrowers. Note I dont disagree with your points ... merely commenting as an observer on the nature of the beast
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