shimself
Member of DD Central
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Post by shimself on Jun 13, 2016 14:26:21 GMT
Can we at least have a clear statement of minumum skin in the game for each originator? I suggest on www.mintos.com/en/loan-originators/ I too am very perturbed by this change, unadvertised, and whatever you say it is in fact eliminating skin in the game, as kissmyjazz wrote at 2% the originator would just about be in profit thanks to the origination fees even if all their loans failed on day one. So not only did you change the deal in a big way without telling us, but once caught your defence is baloney. I was just about to invest a decent further amount, but I will hold off for now and withdraw my cash balance. Please think again, this is wrong.
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Post by littleinvestor on Jun 13, 2016 22:46:33 GMT
I'm not sure if Capitalia - to take another example, is doing too much of a DD in their clients like verifying business statements. I mean look at them, e.g. www.mintos.com/en/106866-01 : According the balance sheet, the business has a turnover with 2 employees of 60k Euros and still arrives to a 'net profit' of 25k Euros , this is not possible, or the employees work for free .
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shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
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Post by shimself on Jun 14, 2016 8:13:57 GMT
I'm not sure if Capitalia - to take another example, is doing too much of a DD in their clients like verifying business statements. I mean look at them, e.g. www.mintos.com/en/106866-01 : According the balance sheet, the business has a turnover with 2 employees of 60k Euros and still arrives to a 'net profit' of 25k Euros , this is not possible, or the employees work for free . How do you manage to read it, when i click on it it gets a bit bigger but still impossible to read?
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Post by extremis on Jun 14, 2016 18:04:26 GMT
I'm not sure if Capitalia - to take another example, is doing too much of a DD in their clients like verifying business statements. I mean look at them, e.g. www.mintos.com/en/106866-01 : According the balance sheet, the business has a turnover with 2 employees of 60k Euros and still arrives to a 'net profit' of 25k Euros , this is not possible, or the employees work for free . How do you manage to read it, when i click on it it gets a bit bigger but still impossible to read? Right-click on it and choose "Open link in new tab" for Chrome browser or something similar for other browsers. However, i don't understand where is the problem with the specific loan, littleinvestor mentioned. 35K looks like an adequate sum to pay 2 employees.
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yacop
Posts: 68
Likes: 42
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Post by yacop on Jun 14, 2016 20:53:16 GMT
I am not afraid to tell you that these kind promises remember me of Pärtel from Bondora once the foreign markets were introduced. It turned out to be a hellhole for investors. Words mean little. The loans are underwritten by the respective loan originator, not Mintos. What concerns Hipocredit they have not changed their underwriting policy. Hipocredit continue to follow the same policy they have been following to date that includes verifying income of each borrower, strict limits on debt to income ratio as regulated by law in Latvia, and limits on LTV based on geography and liquidity. The main danger with the reduced "skin in the game" the loan underwriting standards will seriously deteriorate. If the loan origination fee is say 2% and the "skin in the game" is now also 2%, then Hipocredit is already break even after loan origination and can shovel all kinds of bullcrap to investors. It seems already becoming the case, as such loans are underwritten and sold off: www.mintos.com/en/90493-01 LTV68%, loan purpose is debt restructuring, interest rate is obvioulsy too low for the risk class of the loan, borrower is late on the first repayment already. Mintos team, how your 'high' standards square off with such underwriting practices?
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shimself
Member of DD Central
Posts: 2,561
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Post by shimself on Jun 14, 2016 20:56:18 GMT
How do you manage to read it, when i click on it it gets a bit bigger but still impossible to read? Right-click on it and choose "Open link in new tab" for Chrome browser or something similar for other browsers. However, i don't understand where is the problem with the specific loan, littleinvestor mentioned. 35K looks like an adequate sum to pay 2 employees. Thanks for the solution - my oh is delighted, as my standard answer is - try a right click As for the accounts - there's not enough info to really tell, the tractor might be a bit overvalued (meaning I found one similar on ebay which sold for 12500€)
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Post by littleinvestor on Jun 15, 2016 0:23:51 GMT
How do you manage to read it, when i click on it it gets a bit bigger but still impossible to read? Right-click on it and choose "Open link in new tab" for Chrome browser or something similar for other browsers. However, i don't understand where is the problem with the specific loan, littleinvestor mentioned. 35K looks like an adequate sum to pay 2 employees. extremis 35k implies that with that money all the business costs were paid, incl. 2 employees ; considering it is a farm, I assume there were some costs apart of 2 working people . Aside according the balance sheet, the gross profit = net profit , no taxes then? My point is that many of the balance sheets are a joke and I would not trust the loan originator doing too much of a DD .
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Post by extremis on Jun 15, 2016 17:24:05 GMT
littleinvestor, thank you for elaborating, i should be more careful with all those financial data. So, do you think Capitalia is not to be trusted with their loans?
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Post by aceman on Jun 28, 2016 12:42:08 GMT
Btw, the bbg loans reduced to 8.6% .
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Post by kissmyjazz on Sept 24, 2016 2:24:14 GMT
Now that the Hipocredit loans started to default left and right, the decision the reduce their skin in the game clearly stands out as the stupidest and the most reckless decision Mintos has made so far. I hope they have learned from such blunder. My confidence in the company has clearly taken a dive.
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Post by buttchopf23 on Sept 24, 2016 8:09:42 GMT
if this is true, actually it saved them money in the short term, but in the long run it will hit them hard, as confidence has been lost. furthermore as hippocredit is in the same holding as mintos.
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homes119
Member of DD Central
Posts: 93
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Post by homes119 on Sept 24, 2016 18:17:11 GMT
Now that the Hipocredit loans started to default left and right, the decision the reduce their skin in the game clearly stands out as the stupidest and the most reckless decision Mintos has made so far. I hope they have learned from such blunder. My confidence in the company has clearly taken a dive. Defaulting left and right? I'm holding quite a few and none of them have defaulted, I've even been buying a couple on the SM recently. I was wondering why so many Hippocredit loans were on the SM at decent YTM. Is this reason then? Thanks for your help can't believe I missed this.
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Post by zeverare on Sept 25, 2016 10:50:31 GMT
I'm holding 55 hippocredit loans and only 2 are between 1-15 days late. Defaulting on your mortgage is a decision you don't lightly so it is normal that this only starts now. I also bought more in the recent selloff, don't know why this happened, at that time there were 14% guaranteed loans maybe people shifted to those.
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Post by reeknralf on Sept 25, 2016 11:13:05 GMT
Now that the Hipocredit loans started to default left and right, It doesn't do anyone any favors chucking this sort of stuff about if it's not true. Can you back it up? There are only 3 defaulted Hipocredit loans listed on the SM. I have 107 of which none have defaulted, and 8 are more than 15 days late.
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Post by kissmyjazz on Sept 25, 2016 13:27:58 GMT
Back it up with what? if you look at the statistics page then Hipocredit and Capitalia are two worst performers with about the same size of defaulted or 60+ late loans. Yet Capitalia has 5% skin in the game while Hipocredit only 2%. How does this difference between originators protects me as an investor? I my understanding the loan performance does not warrant the special treatment for Hipocredit. As their loan are longer in duration, I expect more defaults to accumulate over time.
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