stevio
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Post by stevio on Mar 29, 2016 9:25:22 GMT
When a loan renews on FS, does the interest from the previous term get paid out on renewal or do you have to wait for the end of the renewal term for the interest to be paid on both terms?
Thanks
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hendragon
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Post by hendragon on Mar 29, 2016 9:32:35 GMT
interest is paid at the end of the first term
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SteveT
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Post by SteveT on Mar 29, 2016 9:33:19 GMT
Interest on the original loan is paid out when that loan is closed, which is (now) the day that the renewal loan fills and is activated.
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stevio
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Post by stevio on Mar 29, 2016 10:13:24 GMT
Thanks!
And if the loan is extended past the scheduled end date, you have to wait for the interest till it is officially ended (and renewed)
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SteveT
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Post by SteveT on Mar 29, 2016 10:15:00 GMT
Thanks! And if the loan is extended past the scheduled end date, you have to wait for the interest till it is officially ended (and renewed) Yes (whether loan is renewed or not)
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ric
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Post by ric on Apr 12, 2017 13:15:13 GMT
today I had my first repayments in FS (Birkenhead loans). Both loans got repaid before the renewal were fully funded. How does it really work? who takes the risk of the renewal loan not filling? thanks
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locutus
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Post by locutus on Apr 12, 2017 13:21:06 GMT
today I had my first repayments in FS (Birkenhead loans). Both loans got repaid before the renewal were fully funded. How does it really work? who takes the risk of the renewal loan not filling? thanks Underwriters.
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mikes1531
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Post by mikes1531 on Apr 12, 2017 17:32:50 GMT
today I had my first repayments in FS (Birkenhead loans). Both loans got repaid before the renewal were fully funded. How does it really work? who takes the risk of the renewal loan not filling? thanks Underwriters. Sometimes. There have been many occasions where FS haven't brought in underwriters, and the situation is as described above by SteveT and stevio. I expect that FS make individual decisions whether or not to pay for underwriters. A lot must depend on what proportion of 'old' investors are willing to renew their investment. If the proportion is high, there's probably no need for underwriters. If the proportion is low, and FS expect it to take a while to fully fund the renewal loan, then bringing in underwriters probably makes sense.
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