|
|
Post by savingstream on May 21, 2016 14:54:34 GMT
We agree it was amiss of us to release DFL002 - Tranche 2 in the way we did. However we feel that in reality it is no different to a large investor selling a large loan part on the secondary market. Lendy was holding £500k of availability in DFL002 and decided to make it available for sale as the borrower required funds quickly. We have discussed this methodology internally at length and have come to the conclusion that in future, new development tranches will be listed on the pipeline. This will probably result in investors receiving less than £200 for a £500k tranche, but we acknowledge it is a fairer method of distribution. Apologies also for the delay in forum response on this matter but we have been concentrating our efforts on the writing of new business and getting existing loans repaid and refinanced so the forum has recently been unintentionally less of a focus.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087 
Likes: 3,233
|
Post by oldgrumpy on May 21, 2016 15:08:50 GMT
We agree it was amiss of us to release DFL002 - Tranche 2 in the way we did. However we feel that in reality it is no different to a large investor selling a large loan part on the secondary market. Lendy was holding £500k of DFL002 and decided to place it up for sale as the borrower required funds quickly. Yes it is, when you specifically stated that you would not be doing it that way. A second's thought and you could have given one/two/four hours warning that you would be doing this, at the same time apologising for the change of policy due to the borrower's urgent requirement. You didn't.
|
|
cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
|
Post by cooling_dude on May 21, 2016 15:11:55 GMT
We agree it was amiss of us to release DFL002 - Tranche 2 in the way we did. However we feel that in reality it is no different to a large investor selling a large loan part on the secondary market. Lendy was holding £500k of DFL002 and decided to place it up for sale as the borrower required funds quickly. We have discussed this methodology internally at length and have come to the conclusion that in future, new development tranches will be listed on the pipeline. This will probably result in investors receiving less than £200 for a £500k tranche, but we acknowledge it is a fairer method of distribution. Apologies also for the delay in forum response on this matter but we have been concentrating our efforts on the writing of new business and getting existing loans repaid and refinanced so the forum has recently been unintentionally less of a focus. Thanks for getting back to us savingstream , and it's good to hear that you have listened to us and that in the future DFL tranches will be placed on the pipeline, although it would have been nice to have some forewarning. Could I suggest you have the DFL trances ready in the pipeline, so you're only one click away to send funds if the borrower does require them quickly. I agree that you should be concentrating on writing of new business, getting existing loans repaid and refinanced so the forum has recently been unintentionally less of a focus; but I'm sure you could spare 10 minutes every over day to address any questions posed on this forum.
|
|
pom
Member of DD Central
Posts: 1,922 
Likes: 1,244
|
Post by pom on May 21, 2016 15:37:42 GMT
We agree it was amiss of us to release DFL002 - Tranche 2 in the way we did. However we feel that in reality it is no different to a large investor selling a large loan part on the secondary market. Lendy was holding £500k of DFL002 and decided to place it up for sale as the borrower required funds quickly. We have discussed this methodology internally at length and have come to the conclusion that in future, new development tranches will be listed on the pipeline. This will probably result in investors receiving less than £200 for a £500k tranche, but we acknowledge it is a fairer method of distribution. Apologies also for the delay in forum response on this matter but we have been concentrating our efforts on the writing of new business and getting existing loans repaid and refinanced so the forum has recently been unintentionally less of a focus. Thank you for the reply savingstream ... and thank you for clarifying the position on DFL Tranche's... there has been a large number of new pipeline loans recently and a lot of loans near repayment or in for refinancing/conversion to DFL's... I think we, as a forum, need to cut them some slack as the large number of investors now involved in the platform means a much greater amount of queries and it must be incredibly time consuming to respond to all of these and would take more than 10 minutes every other day, as was suggested. Indeed - it certainly takes me a lot more time to just to keep up..
|
|
cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
|
Post by cooling_dude on May 21, 2016 15:45:54 GMT
We agree it was amiss of us to release DFL002 - Tranche 2 in the way we did. However we feel that in reality it is no different to a large investor selling a large loan part on the secondary market. Lendy was holding £500k of DFL002 and decided to place it up for sale as the borrower required funds quickly. We have discussed this methodology internally at length and have come to the conclusion that in future, new development tranches will be listed on the pipeline. This will probably result in investors receiving less than £200 for a £500k tranche, but we acknowledge it is a fairer method of distribution. Apologies also for the delay in forum response on this matter but we have been concentrating our efforts on the writing of new business and getting existing loans repaid and refinanced so the forum has recently been unintentionally less of a focus. I disagree; but I'm not talking about responding to every whim & post where SS are tagged, just the more important questions that arise. Of course, any contact is better the none; I'm just sorry to see it has gone from being very active (49 posts in March) to almost non-existent (3 posts in three weeks).
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on May 21, 2016 17:09:58 GMT
Lendy was holding £500k of DFL002 and decided to place it up for sale as the borrower required funds quickly. This makes me think that Lendy were 'holding' £500k of parts that they hadn't paid for. If the parts had been paid for, there would have been £500k sitting in SS's account available to be sent to the borrower whenever they asked for it.
|
|
jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on May 21, 2016 20:07:06 GMT
...incredibly time consuming to respond to all of these and would take more than 10 minutes every other day, as was suggested. I disagree; but I'm not talking about responding to every whim & post where SS are tagged, just the more important questions that arise. Of course, any contact is better the none; I'm just sorry to see it has gone from being very active (49 posts in March) to almost non-existent (3 posts in three weeks). It can take longer than 10 mins to read the posts in this forum a day, let alone work out which is important and respond to them. Would I like more interaction? Sure. Would I like to see more 'doing what we said we would do'? Absolutely. However, we don't have a right to demand anyone's presence here. Nor do saving stream have a right to expect our cash for investment. A bit of give and take is fine. If a platform chooses to interact here then great, it can help them with feedback, ideas, build momentum etc. But that is the platforms or employees of that platforms decision. Medium term, however much we might like it, a forum such as this will become a fraction of a percent of the user base for a large successful platform. I hope saving stream get there and pay me a lot of interest in the mean time, but whilst we may have an expectation of the right (within the rules) to ask questions here, we don't have any right to expect or demand a reply. Back on topic.... I agree that going back to the previous suggested approach for using the primary market for new tranches is a good one. I also like the idea of having the up there in the pipeline so people can decide etc...
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on May 22, 2016 1:55:56 GMT
I've just submitted a request for an explanation of this week's tranche release via the loan's Q&A option. I'll let everyone know if I get a reply. SS have responded here, and I'm grateful for that. And just to wrap up the story of my enquiry, I received the same reply that SS posted here. Both messages were posted at virtually the same time.
|
|
|
|
Post by earthbound on May 22, 2016 2:10:43 GMT
And I think we should all be careful not to push SS to the point where FS is now.. Which is hardly any response to any enquiry.
|
|
|
|
Post by supernumerary on May 22, 2016 7:05:36 GMT
We agree it was amiss of us to release DFL002 - Tranche 2 in the way we did. However we feel that in reality it is no different to a large investor selling a large loan part on the secondary market. Lendy was holding £500k of availability in DFL002 and decided to make it available for sale as the borrower required funds quickly. We have discussed this methodology internally at length and have come to the conclusion that in future, new development tranches will be listed on the pipeline. This will probably result in investors receiving less than £200 for a £500k tranche, but we acknowledge it is a fairer method of distribution. Apologies also for the delay in forum response on this matter but we have been concentrating our efforts on the writing of new business and getting existing loans repaid and refinanced so the forum has recently been unintentionally less of a focus. I got up early on the morning of the 17th May 2016 because I couldn't sleep for some reason and had the computer on between 5am and 6am and there was a shed load of DFL002 available... So naturally I invested in what was on the system, just over 4,000. Then recycled some other investments that I had and was back in bed for 6am. Didn't think anything further about it, other than it was just a bit of luck on my part...  Now I read that it was probably Lendy selling in the early hours...  Thanks Lendy. 
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on May 22, 2016 7:34:34 GMT
I got up early on the morning of the 17th May 2016 because I couldn't sleep for some reason and had the computer on between 5am and 6am and there was a shed load of DFL002 available... So naturally I invested in what was on the system, just over 4,000. Then recycled some other investments that I had and was back in bed for 6am. Didn't think anything further about it, other than it was just a bit of luck on my part... Now I read that it was probably Lendy selling in the early hours... Thanks Lendy. The large Lendy holding disappeared in large chunks within minutes of it being released. More likely the parts you bought were sold on by someone who'd bought more than they needed the day before.
|
|
adrianc
Member of DD Central
Posts: 10,024
Likes: 5,150
|
Post by adrianc on May 22, 2016 8:10:26 GMT
However we feel that in reality it is no different to a large investor selling a large loan part on the secondary market. Lendy was holding £500k of availability in DFL002 and decided to make it available for sale as the borrower required funds quickly. My head hurts. Are there many people holding £500k parts in live loans? Did the borrower really phone and say "I need £500k NOW. No, NOW. No, 24hrs time won't do." - and would somebody with such poor forecasting really be a borrower that we'd all want to lend money to in the first place?
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on May 22, 2016 9:11:28 GMT
It will have very little to do with borrorower wanting funds immediatly with the prefunding as it is at the moemnt it would have been more then enough to cover the loan and if it was not they could have easily then dumped the rest on the secondary market so would have made no difference. Probably a case of left hand not knowing what right hand had said.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on May 22, 2016 10:44:38 GMT
However we feel that in reality it is no different to a large investor selling a large loan part on the secondary market. Lendy was holding £500k of availability in DFL002 and decided to make it available for sale as the borrower required funds quickly. My head hurts. Are there many people holding £500k parts in live loans? Did the borrower really phone and say "I need £500k NOW. No, NOW. No, 24hrs time won't do." - and would somebody with such poor forecasting really be a borrower that we'd all want to lend money to in the first place? And furthermore... AIUI, the way DFLs are supposed to work, subsequent tranches would be released only after SS receives a report from the Monitoring/Quantity Surveyor confirming that enough progress has been made on the project that the value has increased significantly enough that the additional borrowing won't increase the overall LTV above the agreed level. Since the DFL002 LTV is 70%, the value must increase by at least £714k for a £500k tranche to be released. There is a report from the MS available via the DFL002 loan page indicating that a drawdown of £432k is reasonable. But it seems to suggest that £432k of work had been done. Has there been an unstated assumption made that £432k of work adds £714k of value? Or is the LTV rising? Also, it's dated 4/May. Did it really take nearly two weeks to get it from the MS to Lendy? Finally, the first post in this thread states that the initial drawdown was £1.37M of the £2.66M maximum amount of this loan. Does the recent £500k advance mean the loan balance is now up to £1.87M? Or is most of the above rubbish, and the £500k just released by Lendy was part of the initial £1.37M drawdown? But if that's the case then the initial release of parts for this loan would have been £0.87M, and that would have been little more than the £0.81M rolled forward from PBL050 into this loan. It doesn't help that SS don't make clear exactly how much of a given loan actually has been advanced to a borrower. I'm beginning to think that 'AIUI' is a significant overstatement. I think I'm going to join adrianc's 'My Head Hurts' Club! 
|
|
locutus
Member of DD Central
Posts: 1,059
Likes: 1,622
|
Post by locutus on May 22, 2016 10:50:36 GMT
My head hurts. Are there many people holding £500k parts in live loans? Did the borrower really phone and say "I need £500k NOW. No, NOW. No, 24hrs time won't do." - and would somebody with such poor forecasting really be a borrower that we'd all want to lend money to in the first place? And furthermore... AIUI, the way DFLs are supposed to work, subsequent tranches would be released only after SS receives a report from the Monitoring/Quantity Surveyor confirming that enough progress has been made on the project that the value has increased significantly enough that the additional borrowing won't increase the overall LTV above the agreed level. Since the DFL002 LTV is 70%, the value must increase by at least £714k for a £500k tranche to be released. There is a report from the MS available via the DFL002 loan page indicating that a drawdown of £432k is reasonable. But it seems to suggest that £432k of work had been done. Has there been an unstated assumption made that £432k of work adds £714k of value? Or is the LTV rising? Also, it's dated 4/May. Did it really take nearly two weeks to get it from the MS to Lendy? Finally, the first post in this thread states that the initial drawdown was £1.37M of the £2.66M maximum amount of this loan. Does the recent £500k advance mean the loan balance is now up to £1.87M? Or is most of the above rubbish, and the £500k just released by Lendy was part of the initial £1.37M drawdown? But if that's the case then the initial release of parts for this loan would have been £0.87M, and that would have been little more than the £0.81M rolled forward from PBL050 into this loan. It doesn't help that SS don't make clear exactly how much of a given loan actually has been advanced to a borrower. I'm beginning to think that 'AIUI' is a significant overstatement. I think I'm going to join adrianc 's 'My Head Hurts' Club! All very good points. I'm a huge fan of SS but their process around DFLs is severely lacking and they need to up their game. We're not talking about insignificant sums of money and communications need to be improved. Would it be so hard to have a running commentary on their loan page stating how much has been drawn down along with dates and corresponding LTVs.
|
|
