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Post by Financial Thing on Sept 25, 2015 12:27:41 GMT
So far about 8% of my portfolio is in late, all Mogo backed car loans. Some are close to 60 days past due. It will be interesting to see how Mogo handles these loans if/when they default. Will keep you posted.
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Post by patright on Sept 25, 2015 13:12:26 GMT
"some are close to 60 days" if they are not yet 60 days then they are not default, did you mean 8% of your portfolio is late?
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Post by gmaxkenny on Sept 25, 2015 13:36:35 GMT
So far all my defaulted loans have been bought back by Mogo so I have no complaints with buyback to date.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
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Post by JamesFrance on Sept 26, 2015 7:48:54 GMT
I have a steady trickle of buy backs by Mogo, so the system is working well. This is important with the high LTV and long duration for used cars, but presumably they get much higher rates to be able to cover the repurchases.
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Post by xyon100 on Oct 3, 2015 6:45:17 GMT
I have a Mogo buy back here that does not appear to be late at all. His first payment was late but the other two not, then buy back. Anyone know what is going on there?
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
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Post by JamesFrance on Oct 3, 2015 7:46:52 GMT
I would imagine this to be the borrower repaying the loan early.
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Post by xyon100 on Oct 3, 2015 8:02:47 GMT
I suppose so. Must have been an unexpected windfall!
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Post by martins on Oct 3, 2015 20:12:27 GMT
That was an early repayment. The loans are also bought back if the loan is restructured by the loan originator when restructuring involves changes to the loan term and/or the loan amount or other changes that have an effect to expected cash flows to investors. Currently, all of those instances are shown as the buybacks; but will separate them out, that's in our development pipeline.
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Post by xyon100 on Oct 10, 2015 8:53:14 GMT
OK, good to know. Pity that I have a business loan getting seriously late though, and I don't have many loans. I'll have to see how that goes before committing more funds.
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huxs
Member of DD Central
Posts: 300
Likes: 218
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Post by huxs on Oct 22, 2015 16:06:11 GMT
Hi xyon100, and anyone else with non-buy back loans that are going to default. It would be good to get an insight into the recovery process. I see on the Mintos stats page that no one has yet lost any money but would like to hear how Mintos and partner companies have handled defaults and recoveries to date, how much communication have you received and have recoveries covered both interest and capital.
I join Mintos mainly for the buy-back personally loans but with the rates dropping might try some low LTV non-buy back covered loans instead.
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Post by xyon100 on Oct 29, 2015 10:22:24 GMT
Well, they made a repayment but there next one is late already. Not looking very positive if they are struggling so much already.
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eddy
New Member
Posts: 4
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Post by eddy on Nov 5, 2015 8:00:55 GMT
How they handle defaults ? Are they have a way how to secure our investments ?
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Post by martins on Nov 24, 2015 17:41:33 GMT
eddy The Mintos platform connects investors to the borrowers of various loan originators. The loan originators service the loans including the debt collection. Thus, the exact procedures on handling default varies by the loan originator and also loan product.
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Post by patright on Nov 25, 2015 15:48:11 GMT
Do you know the default rate at cream finance?
I see lots of the loans at 14% that initially hit the market being late on my portfolio
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Post by martins on Nov 26, 2015 13:35:33 GMT
patright All Creamfinance loans come with the Buyback Guarantee meaning the loans that are 60+ days late are bought back by Creamfinance. Thus, the default risk is borne with the loan originator. On average Creamfinance expects default of about 14%. Their recovery rate is 50% that translates to about 7% loss ratio, slightly better than industry average. Loans being late is ordinary course of business, especially, for payday type loan product. The detailed statistics are available here www.mintos.com/en/statistics/ where registered investors can also download the entire loan book.
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