Post by GSV3MIaC on Jan 29, 2015 15:10:08 GMT
Ok, I've been checking this out on the site .. congratulations on actually doing it. A couple of minor points though ..
1) I don't see much point in having an upper rate slider for where you want to enter an auction .. OK, I guess if you enter at 11.00 when currently you could get in at 11.25, and the 11.25 and some of the 11s drop out, you might avoid being rippled down from 11.25 to 11.0 to 10.75, but that's a) unlikely and b) .25% ain't that big a deal? Or am I missing the fact that you can manually get in at 11.15%, and avoid the .25% step(s)?
2) What is wrong with the much simpler (to implement) bond-style dynamic auction .. everyone bids their best and final offer, you figure out who is left in at the end, and then everyone gets the (same) top rate that was collected by the marginal bidder(s)? If there is a huge spread then the borrower might not like the final rate but ..
The 'fairness' advertising/marketing potential on that must be huge .. nobody can scr&w themself by accident (and if anyone really wants to take 5% income when everyone else got 10%, they can always donate the excess to charity.) It has some of the advantages of fixed rate, with the body of lenders setting the fix point, instead of HQ guesstimating it in advance. Compare and contrast FC, where (apart from fixed rate) you can have Granny getting 6% on an A+ loan while Joe Cool was in for a marginal rate of 14.8% .. same loan, same risk. OK, Granny got what she asked for, but I wouldn't really want to recommend that to MY Granny (if I had any left).
Just my tuppence worth .. (well OK, I did deposit a little more than that).
1) I don't see much point in having an upper rate slider for where you want to enter an auction .. OK, I guess if you enter at 11.00 when currently you could get in at 11.25, and the 11.25 and some of the 11s drop out, you might avoid being rippled down from 11.25 to 11.0 to 10.75, but that's a) unlikely and b) .25% ain't that big a deal? Or am I missing the fact that you can manually get in at 11.15%, and avoid the .25% step(s)?
2) What is wrong with the much simpler (to implement) bond-style dynamic auction .. everyone bids their best and final offer, you figure out who is left in at the end, and then everyone gets the (same) top rate that was collected by the marginal bidder(s)? If there is a huge spread then the borrower might not like the final rate but ..
The 'fairness' advertising/marketing potential on that must be huge .. nobody can scr&w themself by accident (and if anyone really wants to take 5% income when everyone else got 10%, they can always donate the excess to charity.) It has some of the advantages of fixed rate, with the body of lenders setting the fix point, instead of HQ guesstimating it in advance. Compare and contrast FC, where (apart from fixed rate) you can have Granny getting 6% on an A+ loan while Joe Cool was in for a marginal rate of 14.8% .. same loan, same risk. OK, Granny got what she asked for, but I wouldn't really want to recommend that to MY Granny (if I had any left).
Just my tuppence worth .. (well OK, I did deposit a little more than that).
