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Post by cyrilmadrid on Sept 17, 2016 8:48:28 GMT
Hello. Could you share if you've tried it your experience with underwriting ? How does it work in terms of minimum size, extra yield, secondary market experience... Thanks.
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mikes1531
Member of DD Central
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Post by mikes1531 on Sept 17, 2016 13:32:06 GMT
Hello. Could you share if you've tried it your experience with underwriting ? How does it work in terms of minimum size, extra yield, secondary market experience... Thanks. : If you're asking about AC-specific info, you may be wasting your time. AIUI, AC have reduced their use of their old 'underwriter panel' ever since they came up with the idea of the QAA. Now that they have about £35M sitting in their QAA/30DAA they probably don't need much underwriting at all.
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SteveT
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Post by SteveT on Sept 17, 2016 15:51:35 GMT
Suggest you have a look at the bonus rates that FS offer for £25k/£50k/£100k stakes in many of their large property loans. Rates of 15%/16%/17% often available to those with very deep pockets.
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Post by cyrilmadrid on Sept 17, 2016 16:05:13 GMT
Hello. Could you share if you've tried it your experience with underwriting ? How does it work in terms of minimum size, extra yield, secondary market experience... Thanks. : If you're asking about AC-specific info, you may be wasting your time. AIUI, AC have reduced their use of their old 'underwriter panel' ever since they came up with the idea of the QAA. Now that they have about £35M sitting in their QAA/30DAA they probably don't need much underwriting at all. Yes, I did see some loans in the pipeline where Underwriting Called appeared, even if the loan was not yielding very much. I thought I could get an extra yield by doing this, but indeed, QAA fills that spot a cheaper rate.
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tonyr
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Post by tonyr on Sept 20, 2016 10:18:05 GMT
AC effectively got rid of underwriters at about this time last year. There have been a few opportunities since but small scale underwriting doesn't really work for anyone. The problem at the moment is there isn't enough liquidity, so it's a significant loss to provide underwriting as (a) you only get the loans that can't be filled by AC and (b) you get stuck holding cash or overweight in less desirable loans for considerable periods. The one use for underwriting is if you have a significant (six figure) sum to invest in one go, then at least you can get invested in reasonable time - of course it's better to feed this sort of amount in gradually if you can.
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