james
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Post by james on Jan 26, 2017 13:49:19 GMT
Please review the ISA page for accuracy and to properly comply with the fair, true and not misleading rule, as well as not breaking anti-discrimination law: 1. Apparently false: "LandlordInvest, being fully FCA authorised, is the first platform that offers a property-backed IFISA", beaten by Abundance, Crowd2Fund and CrowdStacker, all of which offer loans secured on property, though not always homes, more normally commercial property. 2. Apparently false: "You may invest £15,240 (rising to £20,000 in 2017) across a combination of a cash ISA, stocks and shares ISA, and the IFISA". Those amounts are per year while the text appears to mean in total. 3. Misleading and making comparison with cash that the FCA dislikes: "The IFISA offers a fixed return rate and is less vulnerable to stock market fluctuations. The Cash ISAs currently offer returns of around 1.0% per annum, whilst the LandlordInvest IFISA may offer returns of up to 12% per annum". Cash ISAs are not exposed to stock market fluctuations, which is all that "less vulnerable" can be referring to in this text, which doesn't mention S&S at all. 4. Probably misleading: "No investment fees". I assume that your firm is taking fees in some way and in the context of most investment this includes commissions, stock broking charges, legal fees and such that come out of investment returns. See the FCAs ongoing work to make fund managers disclose the total effect of all such things on returns. If you wish to make this claim, "No fees taken directly from investor accounts" would probably be accurate and no worse than the appallingly bad current norm for fee and charge disclosure in the P2P business. 5. Incomplete and wrong word error: "An UK resident". Should be a not an. See guidance notes 3, notably 3.1. 6. Wrong and possibly illegal racial discrimination (which includes country of origin), particularly if enforced: "Have your National Insurance number ready". A declaration that you do not have a NINO is acceptable, see 4.13. Immigrants such as those from other EU countries or refugees will often not have a NINO at the time when they become eligible to open an ISA.
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Post by Deleted on Jan 26, 2017 13:54:01 GMT
Please review the ISA page for accuracy and to properly comply with the fair, true and not misleading rule, as well as not breaking anti-discrimination law: 1. Apparently false: "LandlordInvest, being fully FCA authorised, is the first platform that offers a property-backed IFISA", beaten by Abundance, Crowd2Fund and CrowdStacker, all of which offer loans secured on property, though not always homes, more normally commercial property. 2. Apparently false: "You may invest £15,240 (rising to £20,000 in 2017) across a combination of a cash ISA, stocks and shares ISA, and the IFISA". Those amounts are per year while the text appears to mean in total. 3. Misleading and making comparison with cash that the FCA dislikes: "The IFISA offers a fixed return rate and is less vulnerable to stock market fluctuations. The Cash ISAs currently offer returns of around 1.0% per annum, whilst the LandlordInvest IFISA may offer returns of up to 12% per annum". Cash ISAs are not exposed to stock market fluctuations, which is all that "less vulnerable" can be referring to in this text, which doesn't mention S&S at all. 4. Probably misleading: "No investment fees". I assume that your firm is taking fees in some way and in the context of most investment this includes commissions, stock broking charges, legal fees and such that come out of investment returns. See the FCAs ongoing work to make fund managers disclose the total effect of all such things on returns. If you wish to make this claim, "No fees taken directly from investor accounts" would probably be accurate and no worse than the appallingly bad current norm for fee and charge disclosure in the P2P business. 5. Incomplete and wrong word error: "An UK resident". Should be a not an. See guidance notes 3, notably 3.1. 6. Wrong and possibly illegal racial discrimination (which includes country of origin), particularly if enforced: "Have your National Insurance number ready". A declaration that you do not have a NINO is acceptable, see 4.13. Immigrants such as those from other EU countries or refugees will often not have a NINO at the time when they become eligible to open an ISA. Thank you, James. We will review and consider your comments.
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Post by Deleted on Jan 29, 2017 14:04:33 GMT
Lender condition 3.17 Does this mean that if the loan goes bad, and the security doesn't raise enough that LLI will not pursue the borrower for the difference on behalf of the lenders? Clause 3.17 essentially states that loans on LLI's lending platform are secured (by property), but LLI can never assume any responsibility for any loan payments (interest and/or principal). The loan facility agreement and the Borrower T&Cs set out the steps that LLI will undertake in the event of a borrower arrears or default. Happy to email you a copy of the loan facility agreement, just let me know.
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Post by Deleted on Jan 29, 2017 14:13:04 GMT
7.2 "Acrued interest" ... Will be paid into lenders accounts. Acrued interest as I understand it is usually calculated daily and represents the interest "earned" during the month but not actually paid until the monthly anniversary of the loan. I don't think you mean LLI is going to credit lenders accounts every day? Interest accrues throughout a month and is payable by the borrower at the end of that period. Once a borrower makes an interest payment, the Servicing fee is deducted, and the reminder is allocated to respective lender(s), as per their proportional investment in that particular loan facility agreement. No Servicing fee is deducted until the borrower has made the scheduled interest payment.
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Post by Deleted on Jan 29, 2017 14:20:33 GMT
Do LLI have any plans or intention to provide an automated secondary market and if they do, will the 0.5% fee be reduced? Yes, we intend to offer an automated secondary market once there is sufficient liquidity on the platform, which we expect to be closer to summer this year. The 0.5% fee will be reduced and/or waived as it will mean less administrative effort from LLI's side. The purpose of the fee is not to make a profit, but to cover LLI's administrative costs which are higher due to the lack of an automated secondary market. Many thanks for the questions above, and do let me know if you wish to clarify anything or if you have any other questions. Regards, Filip
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james
Posts: 2,205
Likes: 955
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Post by james on Jan 29, 2017 18:16:39 GMT
Lender condition 3.17 Does this mean that if the loan goes bad, and the security doesn't raise enough that LLI will not pursue the borrower for the difference on behalf of the lenders? Clause 3.17 essentially states that loans on LLI's lending platform are secured (by property), but LLI can never assume any responsibility for any loan payments (interest and/or principal). The loan facility agreement and the Borrower T&Cs set out the steps that LLI will undertake in the event of a borrower arrears or default. Happy to email you a copy of the loan facility agreement, just let me know. It would be good to make real but censored documents available for download and update as needed. The reason for this is to get as many eyes as possible looking over them. Some history here. Back in around 2008 some lenders wanted to see the Zopa documents but they declined to make them broadly available. As part of my due diligence and for other reasons I took out a loan and found that the documents breached the Consumer Credit Act requirements in a variety of ways. Then for every year that the loan ran they provided me with inaccurate annual statements with wrong closing balances and overcharged me interest on the loan. While you'll hopefully do better than that, more eyes are a good thing.
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Post by Deleted on Jan 30, 2017 7:03:19 GMT
Clause 3.17 essentially states that loans on LLI's lending platform are secured (by property), but LLI can never assume any responsibility for any loan payments (interest and/or principal). The loan facility agreement and the Borrower T&Cs set out the steps that LLI will undertake in the event of a borrower arrears or default. Happy to email you a copy of the loan facility agreement, just let me know. It would be good to make real but censored documents available for download and update as needed. The reason for this is to get as many eyes as possible looking over them. Some history here. Back in around 2008 some lenders wanted to see the Zopa documents but they declined to make them broadly available. As part of my due diligence and for other reasons I took out a loan and found that the documents breached the Consumer Credit Act requirements in a variety of ways. Then for every year that the loan ran they provided me with inaccurate annual statements with wrong closing balances and overcharged me interest on the loan. While you'll hopefully do better than that, more eyes are a good thing. Good morning, James. It is on our agenda and I agree that as many eyes as possible is of benefit for all parties involved. We will publish the model security agreements over the next few weeks, just have to ensure that they are updated on a regular basis and add appropriate text to that effect. In the meantime, if you wish to have a copy of the model loan facility agreement and/or the security agreement, please feel free to email me on filip@landlordinvest.com.
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Post by Deleted on Feb 7, 2017 11:55:30 GMT
Hi all,
I am delighted to announce the first loan funded through LandlordInvest’s lending platform (Bridging Loan - Leicester). The loan is pending valuation and legals. Estimated draw down, subject to valuation and full checks, is 2-3 weeks.
We have also launched a new loan today. Details available on the platform.
Regards, Filip
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 7, 2017 12:51:32 GMT
Hmm, added cash drag isnt going to encourage people to commit early. That will be 6 weeks for those first in. Hopefully the plan is to eliminate this once the platform has some momentum. Some underwritten loans ready to draw would be good.
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Post by Deleted on Feb 7, 2017 12:57:18 GMT
If a borrower is unable or unwilling to repay the full amount borrowed presumably LandlordInvest will attempt to sell the property to recover the lent amount. If the sale, after costs etc, does not realise enough to pay the lenders in full, will LandlordInvest then pursue the borrower to recover the difference? Yes, we will pursue a borrower if the sale of the security property does not cover the outstanding amounts (as we would also add penalty interest, other charges etc.) provided that, among other things, the borrower has other assets (which is likely to be the case as the first loans on the platform have been loans for business purposes - but not guaranteed).
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Post by Deleted on Feb 7, 2017 12:59:38 GMT
Hmm, added cash drag isnt going to encourage people to commit early. That will be 6 weeks for those first in. Hopefully the plan is to eliminate this once the platform has some momentum. Some underwritten loans ready to draw would be good. We understand the issue with cash drag and it is likely to change going forward (more lenders etc.), which will also assure borrowers to incur cost of valuation prior to full funding.
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stevio
Member of DD Central
Posts: 2,065
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Post by stevio on Feb 11, 2017 18:33:40 GMT
Do LLI have any plans or intention to provide an automated secondary market and if they do, will the 0.5% fee be reduced? Yes, we intend to offer an automated secondary market once there is sufficient liquidity on the platform, which we expect to be closer to summer this year. The 0.5% fee will be reduced and/or waived as it will mean less administrative effort from LLI's side. The purpose of the fee is not to make a profit, but to cover LLI's administrative costs which are higher due to the lack of an automated secondary market. Many thanks for the questions above, and do let me know if you wish to clarify anything or if you have any other questions. Regards, Filip Is there currently a SM?
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Post by Deleted on Feb 12, 2017 11:07:19 GMT
Yes, we intend to offer an automated secondary market once there is sufficient liquidity on the platform, which we expect to be closer to summer this year. The 0.5% fee will be reduced and/or waived as it will mean less administrative effort from LLI's side. The purpose of the fee is not to make a profit, but to cover LLI's administrative costs which are higher due to the lack of an automated secondary market. Many thanks for the questions above, and do let me know if you wish to clarify anything or if you have any other questions. Regards, Filip Is there currently a SM? Hi stevio. We do not provide a dedicated platform/marketplace with an automatic listing, pricing and re-pricing where sellers may sell their loan or loan parts to buyers. However, lenders may sell their loan or loan parts, provided that we are able to find a buyer for your loan or loan part.
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Post by bodroll on Feb 12, 2017 14:35:52 GMT
I am new to LI. Having committed to invest in a loan, when does the investment start to earn interest?
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stevio
Member of DD Central
Posts: 2,065
Likes: 894
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Post by stevio on Feb 12, 2017 16:56:17 GMT
Hi stevio. We do not provide a dedicated platform/marketplace with an automatic listing, pricing and re-pricing where sellers may sell their loan or loan parts to buyers. However, lenders may sell their loan or loan parts, provided that we are able to find a buyer for your loan or loan part. So if I buy a loan part, I want to sell, how does the process work? Do I need to inform you? Do I list them somewhere on your site?
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