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Post by peterpea on Feb 17, 2018 10:13:14 GMT
It would be reasonable for Lendy to at least reduce the losses. At the moment we might get back 42%, price achievable versus valuation should be no more that 15% out. Making it about £2.93M. So we are about £1.5M adrift. Lendy could afford to use £1M from their fund/profits leaving £500K to get back from the borrower. With luck they can get more and pay back the other 15% plus interest. Most people will not be too unhappy with that and it will be boost Lendys ratings too.
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Post by peterpea on Feb 17, 2018 11:41:02 GMT
It would be reasonable for Lendy to at least reduce the losses. At the moment we might get back 42%, price achievable versus valuation should be no more that 15% out. Making it about £2.93M. So we are about £1.5M adrift. Lendy could afford to use £1M from their fund/profits leaving £500K to get back from the borrower. With luck they can get more and pay back the other 15% plus interest. Most people will not be too unhappy with that and it will be boost Lendys ratings too. Not sure if you are daydreaming or what, but what you ask is simply not possible. Lendy has 20+ projects in official default (some with recovery prospects even worse than this) and probably 10+ new ones going towards that route. It is IMPOSSIBLE to cover them all with their own funds. If they did for one project they would be immediately sued by lenders of other projects equally in default for unfair treatment. So the only recover you can hope has to come from the borrower's money (and the evaluation company if Lendy sues them). Yes , I understand that but they have income coming in all the while and they are not all needing topping up at the same time. Regarding the suing aspect for unfair treatment then that means that the fund can`t ever be used again on that basis.
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Liz
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Post by Liz on Feb 17, 2018 14:43:01 GMT
They need to shut the PF, start a new one for new loans if they wish. Then when every single loan is complete that has a claim on it, which may take years, then an equal share by value can be paid out to all loans. I fear losses could top £20m, so 10-20% of losses could be covered.
I don't know how they can payout a large amount from the PF, without lenders in other defaulted loans complaining. They never should have paid out in full on the garden centre.
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shimself
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Post by shimself on Feb 17, 2018 14:47:26 GMT
I believe that the FCA doesn't approve of "skin in the game" for P2P platforms. Edit: Although they do seem to have full FCA authorisation. They have FCA authorisation but do not fully adhere to their rules. I have mentioned this to the FCA but they will not reply to individuals. What's the issue? The FCA are just nuts, skin in the game just has to be the best way of ensuring that platforms look after lenders
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MarkT
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Post by MarkT on Feb 17, 2018 15:09:33 GMT
They have FCA authorisation but do not fully adhere to their rules. I have mentioned this to the FCA but they will not reply to individuals. What's the issue? The FCA are just nuts, skin in the game just has to be the best way of ensuring that platforms look after lenders AIUI they believe it increases the risk of platform failure.
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shimself
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Post by shimself on Feb 17, 2018 15:27:18 GMT
What's the issue? The FCA are just nuts, skin in the game just has to be the best way of ensuring that platforms look after lenders AIUI they believe it increases the risk of platform failure. I'm sure it does. It increases the risk of bad platforms going out of business. Which would be a good thing, in comparison to their continuing to offer yet more bad loans
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Post by peterpea on Feb 17, 2018 15:59:05 GMT
Yes , I understand that but they have income coming in all the while and they are not all needing topping up at the same time. Regarding the suing aspect for unfair treatment then that means that the fund can`t ever be used again on that basis. It is possible that, after following all possible avenues (including suing the borrower and the valuator), if anything is still missing Lendy might decide to use in part the provision fund (and of course only that, not the Lendy company profits..). But this loan PBL155, at present (after the asset sale), is almost 2 million down and it would be crazy to think that a company can utilize the full provision fund (or almost) for a single default when there are another 20+ waiting and another 10+ coming Don't get the illusion this might ever happen (if they even attempted to do that I, as a lender in two other defaults, would sue Lendy instantly) and be prepared to a loss. I didn`t say the full amount, I said £1M, just over a third and this is an exceptional loan, The loan is quite large and the shortfall very large. The valuer should be sued as they confirmed that the loan amount is covered in the event of going to auction. I know that a Lendy rep called Paul looks at these comments and I hope he will mention this idea to Lendy bosses. Just to let you know I have 14 out of 25 loans (56%) in default or late paying back. Another one was short a few days back and only achieved 69% or so. The other 31% is now an IOU, not to mention interest.
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Liz
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Post by Liz on Feb 17, 2018 16:31:57 GMT
It is possible that, after following all possible avenues (including suing the borrower and the valuator), if anything is still missing Lendy might decide to use in part the provision fund (and of course only that, not the Lendy company profits..). But this loan PBL155, at present (after the asset sale), is almost 2 million down and it would be crazy to think that a company can utilize the full provision fund (or almost) for a single default when there are another 20+ waiting and another 10+ coming Don't get the illusion this might ever happen (if they even attempted to do that I, as a lender in two other defaults, would sue Lendy instantly) and be prepared to a loss. I didn`t say the full amount, I said £1M, just over a third and this is an exceptional loan, The loan is quite large and the shortfall very large. The valuer should be sued as they confirmed that the loan amount is covered in the event of going to auction. I know that a Lendy rep called Paul looks at these comments and I hope he will mention this idea to Lendy bosses. Just to let you know I have 14 out of 25 loans (56%) in default or late paying back. Another one was short a few days back and only achieved 69% or so. The other 31% is now an IOU, not to mention interest. The PF can't afford to use 50% of its cash reserve to compensate just 1 loan. It has to be fair to all 20 defaulted plus maybe another 20 loans that could default.
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dovap
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Post by dovap on Feb 17, 2018 17:20:51 GMT
I didn`t say the full amount, I said £1M, just over a third and this is an exceptional loan, The loan is quite large and the shortfall very large. The valuer should be sued as they confirmed that the loan amount is covered in the event of going to auction. I know that a Lendy rep called Paul looks at these comments and I hope he will mention this idea to Lendy bosses. Just to let you know I have 14 out of 25 loans (56%) in default or late paying back. Another one was short a few days back and only achieved 69% or so. The other 31% is now an IOU, not to mention interest. What's exceptional about this particular loan ? potless borrowers, dodgy valuations, large losses - doesn't seem unusual for the lendy loan book tbh
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Post by peterpea on Feb 17, 2018 17:54:59 GMT
I didn`t say the full amount, I said £1M, just over a third and this is an exceptional loan, The loan is quite large and the shortfall very large. The valuer should be sued as they confirmed that the loan amount is covered in the event of going to auction. I know that a Lendy rep called Paul looks at these comments and I hope he will mention this idea to Lendy bosses. Just to let you know I have 14 out of 25 loans (56%) in default or late paying back. Another one was short a few days back and only achieved 69% or so. The other 31% is now an IOU, not to mention interest. What's exceptional about this particular loan ? potless borrowers, dodgy valuations, large losses - doesn't seem unusual for the lendy loan book tbh as stated. exceptional size and exceptionally low realisation. But I understand what you mean. I have lost a lot of money as we stand now.
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Post by peterpea on Feb 17, 2018 18:01:57 GMT
I didn`t say the full amount, I said £1M, just over a third and this is an exceptional loan, The loan is quite large and the shortfall very large. The valuer should be sued as they confirmed that the loan amount is covered in the event of going to auction. I know that a Lendy rep called Paul looks at these comments and I hope he will mention this idea to Lendy bosses. Just to let you know I have 14 out of 25 loans (56%) in default or late paying back. Another one was short a few days back and only achieved 69% or so. The other 31% is now an IOU, not to mention interest. Unortunately, in my view, this loan has nothing to be considered exceptional. It is an ordinary loan (of size comparable to many others and lower than some), where an extraordinary mistake was made by the evaluator. Lendy knows what the instructions were and I am certain that they should sue this property company if they have nothing to hide (but if Lendy 'suggested' the evaluator their target to be lent, it is a more complicated matter). Paul is part of the Lendy management and I am sure he will report all the concerns expressed here. But if fairness is a criterion, don't expect from the PF more than 87k GBP (= 2mil/23 current default loans) The recovery (if Lendy will do a good job) will have to come from the borrower (and the evaluator) I have looked on the website. It appears to be the biggest default loan that has CONCLUDED. Also , I think it has the biggest SHORTFALL after sale too. Exceptional is the word. I stand to be corrected if I am mistaken ?? Please tell me what the PF is for if it is not to at least soften the blow to lenders ? Also, I think the PF is 2.8M, so 1M is not close to half. Remember this is the highest profile sale too, seen nationally to fail. it would be good for Lendy to nationally be seen to plug the gap.
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registerme
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Post by registerme on Feb 17, 2018 18:18:15 GMT
I have looked on the website. It appears to be the biggest default loan that has CONCLUDED. Also , I think it has the biggest SHORTFALL after sale too. Exceptional is the word. I stand to be corrected if I am mistaken ?? Please tell me what the PF is for if it is not to at least soften the blow to lenders ? Also, I think the PF is 2.8M, so 1M is not close to half. Run the numbers for the expected losses across the rest of the portfolio that's in default, and those loans that might default, and tot it up. Then take another look at the provision fund number.
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Post by peterpea on Feb 17, 2018 19:05:09 GMT
I have looked on the website. It appears to be the biggest default loan that has CONCLUDED. Also , I think it has the biggest SHORTFALL after sale too. Exceptional is the word. I stand to be corrected if I am mistaken ?? Please tell me what the PF is for if it is not to at least soften the blow to lenders ? Also, I think the PF is 2.8M, so 1M is not close to half. Remember this is the highest profile sale too, seen nationally to fail. it would be good for Lendy to nationally be seen to plug the gap. Sorry, but once again your hopes do not correspond to the reality. PBL155 is a problem (and not concluded at all as the chasing of the borrower's asset has not even started), but nothing compared to (just as an example) DFL001. In DFL001 (6 millions lent) you have a far more difficult situation with a development left in half by the borrower and Lendy thinking to invest more money to complete it to get some value in.... (money probably in the hundreds of thousands and maybe coming from the PF itself....). It is very likely that the shortfall in DFL001 in its current state will be much higher than PBL155... And there is much more to worry about studying the Lendy loan book. I stopped investing any new money in Lendy long ago for this precise reason. PBL155 is concluded as much as we no longer own it. Anything else we get is a bonus. My biggest investment is actually DFL001. £75K. This loan has NOT been auctioned and is still financed by lenders. I have been to the site and live not too far away. It looked ok when I visited. if Lendy have all the land, things could be ok. The ten houses are almost complete 600k each x10 = 6M but (I hope) they have the rest of the land with permission to build 50 more houses 10M ?? £16M in total. Just estimating. You have to hope lendy do not keep the PROFITS all to themselves. There will be many costs associated so all in all I think this will come good. I live around there and it is a very decent area with good high prices and demand. This is why I invested heavily in this loan. Lendy should have given more leeway to the borrower in my opinion. he was making it happen in a good area, it would have been more sensible. Lendy are trigger happy.
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Jeepers
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Post by Jeepers on Feb 17, 2018 19:15:50 GMT
I think they should just get rid of the PF for new loans and use it solely for old loans.
In the early days when we were finding our feet, it was a nice comfort which is partly why I invested but with the amount of defaults, it will inevitably be depleted and they cant keep topping it up for all new loans as well.
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Post by peterpea on Feb 17, 2018 19:26:14 GMT
I have looked on the website. It appears to be the biggest default loan that has CONCLUDED. Also , I think it has the biggest SHORTFALL after sale too. Exceptional is the word. I stand to be corrected if I am mistaken ?? Please tell me what the PF is for if it is not to at least soften the blow to lenders ? Also, I think the PF is 2.8M, so 1M is not close to half. Remember this is the highest profile sale too, seen nationally to fail. it would be good for Lendy to nationally be seen to plug the gap. Sorry, but once again your hopes do not correspond to the reality. PBL155 is a problem (and not concluded at all as the chasing of the borrower's asset has not even started), but nothing compared to (just as an example) DFL001. In DFL001 (6 millions lent) you have a far more difficult situation with a development left in half by the borrower, very little achievable right now with the administrators and Lendy thinking to invest more money to complete it (build out) to get some value in.... (money probably in the hundreds of thousands and maybe coming from the PF itself....). It is very likely that the shortfall in DFL001 in its current state will be much higher than PBL155 and the entire PF would not suffice... (BTW: Provision Fund Cash Value is £2,204,789 as officially published by Lendy) And there is much more to worry studying the Lendy loan book. I stopped investing any new money in Lendy long ago for this precise reason. I think the PF figure you quoted is old info. If it is true it is now 2.8M The 001 project is far more interesting , that is why I invested. Good location , buoyant area. if info is true from lendy , permission for 60 houses here. if it goes well it should come good.
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