gc
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Post by gc on Mar 25, 2015 13:04:17 GMT
Is it me or has PBL008 just been extended by 2 months?
I could have sworn that this was due in 2 days.
I keep all ss activity on a spreadsheet and just making sure that I never got the days wrong.
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will
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Post by will on Mar 25, 2015 13:17:07 GMT
Yes, I'm sure you are right!
Yet on the latest Weekly Update off Saving Stream, for w/e last week (but published Monday THIS week)
said, for 008 :- "No change.Repayment has been suggested for as early as this week. Funds will be returned
to investors in full".
So, very nice of 'em to let us know & keep us so fully informed!
PBL006 & Superyacht are similar.
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will
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Post by will on Mar 25, 2015 13:23:41 GMT
SS said they'd maybe extend 006 & Superyacht but not 008. That's quoted exactly -- above ...
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gc
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Post by gc on Mar 25, 2015 13:25:08 GMT
Thanks guys.
As long as I am not losing the plot (any more than usual) then that's fine.
Just emailed them to have my updates sent to gmail account as I'm a plusnet boy which means I get 0 updates.
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paulg
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Post by paulg on Mar 25, 2015 13:50:23 GMT
To be fair to SS they have said in at least 3 weekly updates that they had offered to "roll it", it was only the last update that suggested it might be repaid this week. They obviously have confidence in the client and extending these loans must be cheaper than finding new ones. I wonder if they take the extended loan interest up-front as they do when a loan starts?
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mikes1531
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Post by mikes1531 on Mar 25, 2015 16:47:58 GMT
I wonder if they take the extended loan interest up-front as they do when a loan starts? They'll no doubt try to get the borrower to pay that as part of the agreement to extend, but a lot must depend on why the borrower can't repay on time. If the borrower can't, then savingstream would have to decide between declaring the loan to be defaulted and starting the takeover process so that they can sell the property, or allowing the borrower more time to sell/refinance and hoping for the best. To do the latter, they need to be very confident of the property value as the LTV would increase during the extension. But I sure wish SS would do a better job of letting their lenders know what's happening.
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bugs4me
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Post by bugs4me on Mar 25, 2015 17:15:44 GMT
I wonder if they take the extended loan interest up-front as they do when a loan starts? They'll no doubt try to get the borrower to pay that as part of the agreement to extend, but a lot must depend on why the borrower can't repay on time. If the borrower can't, then savingstream would have to decide between declaring the loan to be defaulted and starting the takeover process so that they can sell the property, or allowing the borrower more time to sell/refinance and hoping for the best. To do the latter, they need to be very confident of the property value as the LTV would increase during the extension. But I sure wish SS would do a better job of letting their lenders know what's happening. It does seem to be rather odd and certainly guaranteed to alienate the odd lender here and there. Whilst it may be in the best interests not to default I don't feel it would do any harm to allow those that wished to exit the opportunity to do so in full. Then of course someone would need to pay the interest earned and I assume Lendy are not prepared to do that out of their own funds. However, at this rate it could be assumed that Lendy feel at liberty to extend a loan, any loan, indefinitely if they so wish.
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mikes1531
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Post by mikes1531 on Mar 25, 2015 22:04:06 GMT
Whilst it may be in the best interests not to default I don't feel it would do any harm to allow those that wished to exit the opportunity to do so in full. Then of course someone would need to pay the interest earned and I assume Lendy are not prepared to do that out of their own funds. However, at this rate it could be assumed that Lendy feel at liberty to extend a loan, any loan, indefinitely if they so wish. The accrued interest is the least part of the funding required in order to allow investors to exit if a loan is extended. If done within a month of the original maturity date, the interest payable would be less than 1p/£, and that has to be manageable pretty easily. The more difficult part likely would be coming up with the 100p/£ needed to repay the principal. It has been suggested that any investor who didn't wish to participate in a loan's extension could sell their parts on the secondary market. That seemed feasible at first glance, but investors' willingness to acquire PBL007 parts seems to have come to a grinding halt. At the moment, there are £8.7k of PBL007 parts offered for sale and the Recent Activity for the loan shows no parts at all have changed hands yesterday, the day before that, or so far today. It could be slightly different if a loan were to be 'extended' rather than declared to be in default, but if the borrower hasn't paid any interest in advance at the time the loan is 'extended' then there really is no difference between an extension and a default. And if the borrower hasn't paid any advance interest at the time of an extension then SS/Lendy need to be prepared to pay that themselves, because they are pretty well committed to paying interest monthly once a loan draws down. They may be able to convince lenders to wait for drawdown (or abandonment) before making the initial interest/cashback payment, but asking investors to wait after maturity would mean a significant and negative change to the whole platform, would be very detrimental to their operating model, and could cause a mass exodus of investors. It's not a step to be taken lightly.
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bugs4me
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Post by bugs4me on Mar 25, 2015 22:17:30 GMT
Whilst it may be in the best interests not to default I don't feel it would do any harm to allow those that wished to exit the opportunity to do so in full. Then of course someone would need to pay the interest earned and I assume Lendy are not prepared to do that out of their own funds. However, at this rate it could be assumed that Lendy feel at liberty to extend a loan, any loan, indefinitely if they so wish. The accrued interest is the least part of the funding required in order to allow investors to exit if a loan is extended. If done within a month of the original maturity date, the interest payable would be less than 1p/£, and that has to be manageable pretty easily. The more difficult part likely would be coming up with the 100p/£ needed to repay the principal. It has been suggested that any investor who didn't wish to participate in a loan's extension could sell their parts on the secondary market. That seemed feasible at first glance, but investors' willingness to acquire PBL007 parts seems to have come to a grinding halt. At the moment, there are £8.7k of PBL007 parts offered for sale and the Recent Activity for the loan shows no parts at all have changed hands yesterday, the day before that, or so far today. It could be slightly different if a loan were to be 'extended' rather than declared to be in default, but if the borrower hasn't paid any interest in advance at the time the loan is 'extended' then there really is no difference between an extension and a default. And if the borrower hasn't paid any advance interest at the time of an extension then SS/Lendy need to be prepared to pay that themselves, because they are pretty well committed to paying interest monthly once a loan draws down. They may be able to convince lenders to wait for drawdown (or abandonment) before making the initial interest/cashback payment, but asking investors to wait after maturity would mean a significant and negative change to the whole platform, would be very detrimental to their operating model, and could cause a mass exodus of investors. It's not a step to be taken lightly. And there seems to be part of the problem. Whilst you may (usually) be able to offload your investment on the SM, the interest due is effectively locked into the system until the loan matures. The maturity date could in theory it would appear to be at any time during the future dependent upon how often and for what period Lendy decides to extend a loan. It does seem rather uncomfortable that there is nothing put to lenders as to their preferred preference but as we are lending to Lendy rather than directly to the borrower it appears they feel it is their prerogative to act as they do. Meanwhile, I have close to four figures tied up in interest due to be paid on maturity. I can accept this arrangement, that was part of the original deal. But if those loans are extended then IMO Lendy are operating outside of the original contracted arrangement.
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mikes1531
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Post by mikes1531 on Mar 25, 2015 22:29:52 GMT
It does seem rather uncomfortable that there is nothing put to lenders as to their preferred preference but as we are lending to Lendy rather than directly to the borrower it appears they feel it is their prerogative to act as they do. Meanwhile, I have close to four figures tied up in interest due to be paid on maturity. I can accept this arrangement, that was part of the original deal. But if those loans are extended then IMO Lendy are operating outside of the original contracted arrangement. I agree that extending an interest-payable-at-maturity loan would be outside the original arrangement. But I'd go further and suggest that unilaterally extending any loan without investor approval is outside the agreement. And I'd even go so far as to suggest that the current platform structure, whereby we're lending to SS/Lendy rather than the borrower, makes matters even worse because it could be argued that non-paying borrowers are Lendy's problem and not ours. savingstream really must do some explaining -- and very soon -- or the platform is going to find itself in deep trouble very quickly.
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