shimself
Member of DD Central
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Post by shimself on Apr 30, 2014 19:11:33 GMT
Don't forget there has already been an underwriting process of the figures. Underwriting on REBS. Are you sure, what how, do tell?
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Post by bracknellboy on Apr 30, 2014 19:57:07 GMT
I can't comment on Rebuilding 'cos I don't use it. However that to me smacks of a touch of indifference (I was going to use arrogance but decided it would sound too harsh) towards lenders. Yes there has been an underwriting process of the figures (I'm tlaking FC, TC and AC where I do lend). But lenders are lending there hard earned cash, and sorry but the number of loans which have gone t**s up in short space of time, or where the supposed asset security has ended up as sand running through lenders fingers should be a pretty good indicator of the rights that lenders have, and expectations that brokers should have, of the questions that are asked. Give me a broker/sponsor etc. who has a sustained track record of bringing proposals to the table of a significant period of time none of which have turned sour and I'm sure they will get more leeway than others (that is shown on TC I would suggest); show me one who has demonstrated that supposedly heavily asset backed loans have failed and turns out the assets have either dissipated into thin air or were massively over valued and I will show you a reason why lenders should not be expected to simply take the brokers word that its a 'good deal'. After all, intermediaryts are financial beneficiaries of a transaction: so don't expect lenders to assuem they are working in lendres interest.
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Post by captainconfident on Apr 30, 2014 20:56:33 GMT
Buy a bigger tablet or slim down your fat fingers, brocknelboy !
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Post by rugbylad on May 1, 2014 13:44:16 GMT
Sometime's I regret my own stance, which is never to invest in a loan I have introduced ! One of the sponsors on TC always invests in a loan they have introduced. Skin in the game, interests aligned etc. I'm very much in favour, so much so I think it should be compulsory Ha Ha I take your point, however my daughters spend too much for me to be able to invest in every case I write 
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Post by rugbylad on May 1, 2014 13:51:36 GMT
I can't comment on Rebuilding 'cos I don't use it. However that to me smacks of a touch of indifference (I was going to use arrogance but decided it would sound too harsh) towards lenders. Yes there has been an underwriting process of the figures (I'm tlaking FC, TC and AC where I do lend). But lenders are lending there hard earned cash, and sorry but the number of loans which have gone t**s up in short space of time, or where the supposed asset security has ended up as sand running through lenders fingers should be a pretty good indicator of the rights that lenders have, and expectations that brokers should have, of the questions that are asked. Give me a broker/sponsor etc. who has a sustained track record of bringing proposals to the table of a significant period of time none of which have turned sour and I'm sure they will get more leeway than others (that is shown on TC I would suggest); show me one who has demonstrated that supposedly heavily asset backed loans have failed and turns out the assets have either dissipated into thin air or were massively over valued and I will show you a reason why lenders should not be expected to simply take the brokers word that its a 'good deal'. After all, intermediaryts are financial beneficiaries of a transaction: so don't expect lenders to assuem they are working in lendres interest. Never used TC, might have to look at them. happy to say not had one go sour on me yet, although have arranged for a few to be repaid early.
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shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
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Post by shimself on May 1, 2014 19:47:59 GMT
Anyway can you clarify the underwriting on REBS comment please?
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Post by jackpease on May 2, 2014 4:31:27 GMT
>>>Anyway can you clarify the underwriting on REBS comment please?
Yes i was keen to hear on that point? I'm not sure how that can be because loads of ReBS offers don't fill and are pulled - surely that means they can't be underwritten?
Jack
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Post by rugbylad on May 2, 2014 9:21:42 GMT
>>>Anyway can you clarify the underwriting on REBS comment please? Yes i was keen to hear on that point? I'm not sure how that can be because loads of ReBS offers don't fill and are pulled - surely that means they can't be underwritten? Jack A lot don't fill for a number of reasons, 1. investors simply do not like the proposition 2. Questions asked are not answered 3. some 'investors' who declare themselves out go on to criticise the proposal putting off others 4. Not enough investment available for the number of loans listed. (for example only 2868 registered users at the moment compared with of 60,000 on FC) With regards to underwriting Cases are submitted online, financials uploaded and are then underwritten. My interpretation of the process includes : checking out financials, questioning anything unusual or that needs an explanation, i.e. extraordinary loss, big variance in COGS etc credit checks on company and directors validation of PG Check out existing guarantees and debentures Confirm security Confirm affordability confirm lending amount, is it realistic to fund at that level ? Process from application to lending takes roughly two to three weeks. Hope this helps ?
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Post by bengilbert on May 2, 2014 10:39:39 GMT
I think people might be talking about different things here. As I understand it, within p2p, 'underwriting' has 2 quite different meanings. It can mean just the process of investigating potential borrowers to decide whether they are creditworthy enough to list, or it can mean people committing to fund any part of a loan that remains unfunded at the end of the auction.
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Post by rugbylad on May 2, 2014 12:18:18 GMT
I think people might be talking about different things here. As I understand it, within p2p, 'underwriting' has 2 quite different meanings. It can mean just the process of investigating potential borrowers to decide whether they are creditworthy enough to list, or it can mean people committing to fund any part of a loan that remains unfunded at the end of the auction. Definition of Underwriting here is the p2p company, i.e. ReB underwriting a loan as to it's suitability to be listed. They will not just list everything that is sent in !
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Post by Deleted on Aug 14, 2014 20:42:32 GMT
rugbylad : "some 'investors' who declare themselves out go on to criticise the proposal putting off others" If an investor is making decisions based primarily on blindly following the crowd, they'll be more swayed by the %-filled than by individual comments. If they're basing their decision on sound reason, you have nothing to worry about from opinions being expressed. If we create an environment in which only positive opinions are allowed, the result will be unwise investments by the inexperienced and loss of confidence in the platform by the experienced and inexperienced alike. The truth is always preferable, even if that truth is simply "this investor is an idiot".
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