grahamg
Member of DD Central
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Post by grahamg on Oct 9, 2016 12:13:35 GMT
For each of the loans i have just sold there seems to be schrapnel left over. I can't list it or unlist it for dale. Does anyone know why or how this gets resolved.
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treeman
Member of DD Central
Posts: 1,026
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Post by treeman on Oct 9, 2016 13:24:54 GMT
For each of the loans i have just sold there seems to be schrapnel left over. I can't list it or unlist it for dale. Does anyone know why or how this gets resolved. Based on my few previous sales this remnant of loan principal gets paid back on the next due date for the loan along with interest accrued to the point of sale. Bit weird - never quite understood why the principal remaining (and so amount received on the day of sale) is reduced daily but that seems to be how it is. 
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TheDriver
Member of DD Central
Slightly bonkers
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Post by TheDriver on Oct 11, 2016 0:26:05 GMT
Bit weird - never quite understood why the principal remaining (and so amount received on the day of sale) is reduced daily but that seems to be how it is.
It just apportions the non-payment risk pro-rata to the proportion of the month buyer and seller hold the loan - eg if sold just before the next repayment is due and the buyer paid the full Outstanding Principle and/or accrued interest, they take on the full risk in case of non-payment.
Technically correct, but in reality a major complication giving minimal benefit to buyers. In fact even LC staff mostly don't understand the system, as evidenced in several instances of documentation! Luckily the programmers got this bit right, so the lack of understanding hasn't been critical - until something goes wrong with the system.
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