|
|
Post by GSV3MIaC on Jul 22, 2016 8:26:44 GMT
/mod hat off.
PBL026 ought be near the top of the list. "Re finance" is all very well, but only if there is some more final solution in sight, otherwise the LTV just creeps up (or the borrower gets poorer) .. eventually nobody will re-finance it at any non-usurious rate.
Not sure I'd want to refinance that one, not at 12% anyway. Be nice to have a choice though.
|
|
boble
Posts: 150 
Likes: 65
|
Post by boble on Jul 23, 2016 10:36:16 GMT
And so would SS. Although I fear they may already be into a few loans they will come to regret and you can't keep kicking the ball further down the road forever. Sooner or later you have to face the music and let the chickens come home to roost. I wonder if SS are waiting to see what happens with the garden centre, and its impact on the Provision Fund and their investors' enthusiasm, before they force the issue on more of their non-performing loans. My assumption is that the loans in negative days are still being serviced for interest and so SS are content to allow them to continue, as at least in this way the position doesn't get any worse form the investors perspective. My thoughts for a while have been that SS should formally renew these loans for the term the borrower are able to front up the interest, as this would also stimulate activity on the SM. I regularly offer experienced/knowledge based advise to SS, however, haven't done so with this as I think they are being kept busy enough "fire fighting", however, will copy this post to them for information.
|
|
ped
Member of DD Central
Posts: 255
Likes: 84
|
Post by ped on Jul 23, 2016 11:38:39 GMT
I think that is a very good idea. Doing a bit of a clean up on some of the over due loans would help the SM but might hide issues for any investor not reading this forum.
|
|
adrianc
Member of DD Central
Posts: 10,014
Likes: 5,143
|
Post by adrianc on Jul 23, 2016 11:48:15 GMT
And so would SS. Although I fear they may already be into a few loans they will come to regret and you can't keep kicking the ball further down the road forever. Sooner or later you have to face the music and let the chickens come home to roost. I wonder if SS are waiting to see what happens with the garden centre, and its impact on the Provision Fund and their investors' enthusiasm, before they force the issue on more of their non-performing loans. I hope that's exactly what they're doing. Of course, it may well be that Lendy have more in-house experience in dealing with defaults than we see via SS - both in terms of previous experience elsewhere in the industry, and in terms of non-SS Lendy loans.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Jul 23, 2016 12:59:29 GMT
My assumption is that the loans in negative days are still being serviced for interest and so SS are content to allow them to continue, as at least in this way the position doesn't get any worse form the investors perspective. My thoughts for a while have been that SS should formally renew these loans for the term the borrower are able to front up the interest, as this would also stimulate activity on the SM. : I certainly hope you are right, but why do you make that assumption? If the borrower actually is paying interest, then I would have expected SS to reduce the negative remaining term to reflect the actual amount of unpaid interest. And I would hope that SS would see the merit in mentioning such a significant positive development in the loan's updates. Both of those actions would build investor confidence in the platform in general, and specifically for these overdue loans. As you've noted, it probably would do wonders for the liquidity of these loans on the SM and encourage more investment. My own assumption, since savingstream have said nothing about receiving any further payments by the borrowers of these loans, is that no further interest has been paid by the borrowers and that the negative remaining terms are an indicator of how big the unpaid interest deficit is. AFAIK, all of the loans with negative remaining terms except PBL074 were written under the old Ts&Cs, where Lendy borrowed money from SS's investors and lent it to their borrowers. I haven't a clue whether that makes SS/Lendy more willing to continue to pay interest on these overdue loans.
|
|
boble
Posts: 150
Likes: 65
|
Post by boble on Jul 23, 2016 13:27:46 GMT
My assumption is that the loans in negative days are still being serviced for interest and so SS are content to allow them to continue, as at least in this way the position doesn't get any worse form the investors perspective. My thoughts for a while have been that SS should formally renew these loans for the term the borrower are able to front up the interest, as this would also stimulate activity on the SM. : I certainly hope you are right, but why do you make that assumption? If the borrower actually is paying interest, then I would have expected SS to reduce the negative remaining term to reflect the actual amount of unpaid interest. And I would hope that SS would see the merit in mentioning such a significant positive development in the loan's updates. Both of those actions would build investor confidence in the platform in general, and specifically for these overdue loans. As you've noted, it probably would do wonders for the liquidity of these loans on the SM and encourage more investment. My own assumption, since savingstream have said nothing about receiving any further payments by the borrowers of these loans, is that no further interest has been paid by the borrowers and that the negative remaining terms are an indicator of how big the unpaid interest deficit is. AFAIK, all of the loans with negative remaining terms except PBL074 were written under the old Ts&Cs, where Lendy borrowed money from SS's investors and lent it to their borrowers. I haven't a clue whether that makes SS/Lendy more willing to continue to pay interest on these overdue loans. My assumption is based on SS saying that the reason why PBL020 was placed in default was the that the borrower was unable to continue to service the loan interest. It would also be reckless of them (and probably criminal) to allow new funds into a default loan. I have emailed Tim requesting clarification. I have no doubt that SS are very uncomfortable about the number of loans in minus days; however, in this type of higher risk lending it isn't that unusual; SS just need to keep on top of them, hence of reference to fire fighting.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
|
Post by ilmoro on Jul 23, 2016 13:34:42 GMT
|
|
star dust
Member of DD Central
Posts: 2,998
Likes: 3,531
|
Post by star dust on Jul 23, 2016 14:36:44 GMT
I have also had similar confirmation by email from Saving Stream; ilmoro I think there was something slightly wrong with your link as it only goes to the first post without the rest of the thread, so trying again here .
|
|
|
|
Post by GSV3MIaC on Jul 23, 2016 15:20:44 GMT
If it wasn't for the amateur experts on here I know I'd be into some loans that I might regret further down the line. Keep up the good work guys How does that saying go .. 'Amateurs built and sailed the Ark .. it took real experts to build and sail the Titanic'. 8>.
|
|
