gl51
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Post by gl51 on Sept 27, 2016 19:42:27 GMT
....what are the chances that it will carry on to it's full term?
Trying to decide whether to sell high interest parts or not.
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Post by GSV3MIaC on Sept 28, 2016 7:50:45 GMT
Historically probably in the region of 90% sure that it will repay (having found a cheaper deal elsewhere). Very occasionally it doesn't happen, and if FC have removed the ability to sell on the SM, they have to turn it back on. Note that if you are selling at a premium, most buyers will read the note (but stupid buy-bots can still be tempted by a high enough rate).
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ptr120
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Post by ptr120 on Sept 28, 2016 8:23:24 GMT
I've had two loans in recent memory where a note has appeared that the borrower has expressed an interest in settling a loan. After some delay (and prompting FC) a further note has appeared that the borrower is no longer interested in settling the loan. It would appear that they no longer remove the risk band by default when a borrower expresses an interest in settling a loan. FC also confirmed that they have no procedure in place at present to add a note in the event that the borrower is no longer interested in settling a loan. As you can imagine I've told them that they need to implement one as values on the SM are impacted.
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dawn
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Post by dawn on Sept 28, 2016 11:48:49 GMT
Most of mine that have expressed an interest in repaying have done so within a short time. A few still haven't more than 6 months after making the statement and at least 1 went on to default (can't remember which one) and there might be 2 that did that.
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gl51
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Post by gl51 on Sept 28, 2016 13:31:51 GMT
Thanks for your replies. When FC changed their policy from disallowing sales of soon-to-be-repaid loans to allowing it, I questioned the appropriateness of allowing people to sell such loans, as I couldn't understand why anyone would knowingly buy them. They said:
"this was changed due to the fact that more often than not borrowers would not make their final repayments and therefore the grades would need to be reinstated again"
which differs from GSV3MIaC's view that most are redeemed.
Interestingly, they went on to say (about redeemed loans):
"the investor they will receive their original principle and the interest for the whole month of the settlement."
so there could be a small bonus on purchasing such loan parts (up to 1.5% on an E loan).
Sadly, I suspect that most purchases of such loan parts do not understand that they will lose any premium that they have paid if it is redeemed shortly.
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Post by GSV3MIaC on Sept 28, 2016 14:27:28 GMT
I guess one man's 'often' is someone else's 'sometimes' .. I've only ever had 2 loans where the risk band was removed due to upcoming payment, and it was then put back. Of course the vast majority of loans which repay early do so with absolutely no warning at all!
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dawn
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Post by dawn on Oct 1, 2016 21:41:43 GMT
Loan 8835
27th October 2015 - Notice of intent to repay early
30th September 2016 - RBR - downgraded as a meeting of creditors has been convened
No other comments in between the two dates and all payments on time or within a day or two. Not all who state that they intend to repay early follow through.
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blender
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Post by blender on Oct 1, 2016 23:07:10 GMT
Loan 8835 27th October 2015 - Notice of intent to repay early 30th September 2016 - RBR - downgraded as a meeting of creditors has been convened No other comments in between the two dates and all payments on time or within a day or two. Not all who state that they intend to repay early follow through. Interesting. Many of us sell a loan which comes back from late. Perhaps we should also sell a loan which was to be repaid but does not do so - indicating bad news. Sorry for your loss - if any.
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dawn
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Post by dawn on Oct 2, 2016 8:53:54 GMT
Loan 8835 27th October 2015 - Notice of intent to repay early 30th September 2016 - RBR - downgraded as a meeting of creditors has been convened No other comments in between the two dates and all payments on time or within a day or two. Not all who state that they intend to repay early follow through. Interesting. Many of us sell a loan which comes back from late. Perhaps we should also sell a loan which was to be repaid but does not do so - indicating bad news. Sorry for your loss - if any. 14 months left to run out of 36 so not a large amount still due. Not defaulted yet so fingers crossed payments continue.
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