chunkie
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Post by chunkie on Jan 17, 2017 19:44:02 GMT
I'm concerned by the continuing lack of updates (3 weeks and counting). I'm cashing out until coms improve.
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toffeeboy
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Post by toffeeboy on Jan 18, 2017 11:45:41 GMT
Would it not be better if savingstream updated the loan time remaining to take in account the borrowers who service the interest .An example being 006 which is 112 days over due but the last update quoted "Borrower continues to service their interest payments and we are confident the Borrower has substantial assets so we are comfortable for this loan to continue." This has been mentioned before but as with then I would rather SS spent their time getting new loans and staying on top of the other loans as well as updating the communications than constantly adding 30 days to the loan days each month when the interest is paid.
This could also lead to some confusion as to the length of the loan, as I said earlier as long as the loan isn't in the default section then the interest is being paid "simples"
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SteveT
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Post by SteveT on Jan 18, 2017 11:49:47 GMT
Would it not be better if savingstream updated the loan time remaining to take in account the borrowers who service the interest .An example being 006 which is 112 days over due but the last update quoted "Borrower continues to service their interest payments and we are confident the Borrower has substantial assets so we are comfortable for this loan to continue." This has been mentioned before but as with then I would rather SS spent their time getting new loans and staying on top of the other loans as well as updating the communications than constantly adding 30 days to the loan days each month when the interest is paid.
This could also lead to some confusion as to the length of the loan, as I said earlier as long as the loan isn't in the default section then the interest is being paid "simples"
Do you really reckon that interest is being paid monthly by the borrower of the Gloucs loans?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 18, 2017 12:53:55 GMT
This has been mentioned before but as with then I would rather SS spent their time getting new loans and staying on top of the other loans as well as updating the communications than constantly adding 30 days to the loan days each month when the interest is paid.
This could also lead to some confusion as to the length of the loan, as I said earlier as long as the loan isn't in the default section then the interest is being paid "simples"
Do you really reckon that interest is being paid monthly by the borrower of the Gloucs loans? I certainly don't. However, the line of response when I have previously asked these negative duration loans, is that the interest is being sent on a rolling basis. When that stops, the loan defaults. Maybe that stance has changed. If so, we need to know
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mikes1531
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Post by mikes1531 on Jan 18, 2017 23:05:28 GMT
This has been mentioned before but as with then I would rather SS spent their time getting new loans and staying on top of the other loans as well as updating the communications than constantly adding 30 days to the loan days each month when the interest is paid.
This could also lead to some confusion as to the length of the loan, as I said earlier as long as the loan isn't in the default section then the interest is being paid "simples"
Do you really reckon that interest is being paid monthly by the borrower of the Gloucs loans? Seems rather unlikely if the borrowers really are bankrupt. toffeeboy: Adding 30 days to a loan's term whenever interest is paid strikes me as a pretty menial admin task that could be delegated easily and not distract from management's other important tasks. And doing that would inspire so much more confidence in the platform that IMHO they're crazy not to do it. Conversely, declaring some more of the loans that actually aren't paying interest monthly to be defaults would -- again IMHO -- seriously damage confidence in the platform. So SS/Lendy have a huge incentive to make things look rosier by not defaulting loans, and I am concerned that this may be overriding the need to be transparent.
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am
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Post by am on Jan 18, 2017 23:26:01 GMT
Do you really reckon that interest is being paid monthly by the borrower of the Gloucs loans? Seems rather unlikely if the borrowers really are bankrupt. toffeeboy : Adding 30 days to a loan's term whenever interest is paid strikes me as a pretty menial admin task that could be delegated easily and not distract from management's other important tasks. And doing that would inspire so much more confidence in the platform that IMHO they're crazy not to do it. Conversely, declaring some more of the loans that actually aren't paying interest monthly to be defaults would -- again IMHO -- seriously damage confidence in the platform. So SS/Lendy have a huge incentive to make things look rosier by not defaulting loans, and I am concerned that this may be overriding the need to be transparent. I'm not so sure about that last point. I'm worrying more about transparency/accuracy at SS than about the defaults I have at FC and AC.
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am
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Post by am on Jan 18, 2017 23:30:15 GMT
Seems rather unlikely if the borrowers really are bankrupt. toffeeboy : Adding 30 days to a loan's term whenever interest is paid strikes me as a pretty menial admin task that could be delegated easily and not distract from management's other important tasks. And doing that would inspire so much more confidence in the platform that IMHO they're crazy not to do it. Conversely, declaring some more of the loans that actually aren't paying interest monthly to be defaults would -- again IMHO -- seriously damage confidence in the platform. So SS/Lendy have a huge incentive to make things look rosier by not defaulting loans, and I am concerned that this may be overriding the need to be transparent. I'm not so sure about that last point. I'm worrying more about transparency/accuracy at SS than about the defaults I have at FC and AC. If only I had a good home for my money.
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mikes1531
Member of DD Central
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Post by mikes1531 on Jan 18, 2017 23:37:29 GMT
Seems rather unlikely if the borrowers really are bankrupt. toffeeboy : Adding 30 days to a loan's term whenever interest is paid strikes me as a pretty menial admin task that could be delegated easily and not distract from management's other important tasks. And doing that would inspire so much more confidence in the platform that IMHO they're crazy not to do it. Conversely, declaring some more of the loans that actually aren't paying interest monthly to be defaults would -- again IMHO -- seriously damage confidence in the platform. So SS/Lendy have a huge incentive to make things look rosier by not defaulting loans, and I am concerned that this may be overriding the need to be transparent. I'm not so sure about that last point. I'm worrying more about transparency/accuracy at SS than about the defaults I have at FC and AC. : I take your point. Defaults are to be expected in P2P lending, so having a few shouldn't be a major cause for concern. OTOH, I see 30 out of SS's 87 loans have negative terms at the moment. That's 34% of the list. If a significant number of those were to be declared defaults, ISTM that would make a serious dent in investor confidence. But that's JMHO.
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Post by GSV3MIaC on Jan 19, 2017 7:53:42 GMT
/mod hat off
I think one issue is the PF .. FC and AC don't have one, SS do, and exactly how it handles defaults is going to affect user confidence ... Too many declared defaults might lead to us finding out.
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nick
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Post by nick on Jan 19, 2017 9:49:21 GMT
/mod hat off I think one issue is the PF .. FC and AC don't have one, SS do, and exactly how it handles defaults is going to affect user confidence ... Too many declared defaults might lead to us finding out. Whilst having a PF provides a degree of comfort, I personally place little reliance on it when assessing the underlying risk of any of the loans on the platform. At 2% of outstanding loans, it is unlike the PF would fully cover expected losses over the medium-long term. Interestingly, the FCA's recent interim review of P2P lending highlighted concern on how the use of provision funds may obscure the underlying risk to investors resulting in some investor believing that losses will be backstopped by platforms. It will be interesting to see how SS allocate the PF provision across the first few defaults and should provide some insight on their view the longer term loss rate.
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Post by portlandbill on Jan 19, 2017 13:17:11 GMT
Bondmason have posted this in their section of this forum:-
"Our Approach to Defaults
......
As a rule of thumb:
- Property bridging and development loans: any extension of more than 90 days is a significant concern to us (the security should be seized at this point). If the developer wants more time than this, then they should refinance us out and arrange a new loan facility.
....."
it would be good if SS took the same approach, and followed it.
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toffeeboy
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Post by toffeeboy on Jan 19, 2017 13:30:06 GMT
Bondmason have posted this in their section of this forum:- "Our Approach to Defaults ...... As a rule of thumb: - Property bridging and development loans: any extension of more than 90 days is a significant concern to us (the security should be seized at this point). If the developer wants more time than this, then they should refinance us out and arrange a new loan facility. ....." it would be good if SS took the same approach, and followed it. You can do it yourself by just selling on the SM any loans that are more than 90 days over the EXPECTED repayment date. The SM is liquid enough even some of the more dubious loans that you can sell out so you can make your own policy the same way that a lot of lenders do. I am happy to hold any loan that I feel that asset is enough to cover the amount leant so why should SS force someone into selling for a less amount when the loan is serviced and the asset covers the capital leant. The information provided could be better as everyone knows but a set policy to force sales/refinance when there is no danger doesn't make sense to me.
Development loans I can understand the policy as there is usually a set build time with set budgets to meet so any delay causes extra costs. Bridging loans are notorious for not being repaid in the expected time and a lot more but as long as the asset continues to cover the outstanding loan and more then I don't see a problem.
I don't lend through Bondmason but I thought they leant your money through other sites not actually make the loans themselves so they don't do any seizing or anything themselves anyone although I could be wrong as only know what I have read on this board.
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Post by portlandbill on Jan 19, 2017 16:12:33 GMT
Bondmason have posted this in their section of this forum:- "Our Approach to Defaults ...... As a rule of thumb: - Property bridging and development loans: any extension of more than 90 days is a significant concern to us (the security should be seized at this point). If the developer wants more time than this, then they should refinance us out and arrange a new loan facility. ....." it would be good if SS took the same approach, and followed it. You can do it yourself by just selling on the SM any loans that are more than 90 days over the EXPECTED repayment date. The SM is liquid enough even some of the more dubious loans that you can sell out so you can make your own policy the same way that a lot of lenders do. I am happy to hold any loan that I feel that asset is enough to cover the amount leant so why should SS force someone into selling for a less amount when the loan is serviced and the asset covers the capital leant. The information provided could be better as everyone knows but a set policy to force sales/refinance when there is no danger doesn't make sense to me.
Development loans I can understand the policy as there is usually a set build time with set budgets to meet so any delay causes extra costs. Bridging loans are notorious for not being repaid in the expected time and a lot more but as long as the asset continues to cover the outstanding loan and more then I don't see a problem.
I don't lend through Bondmason but I thought they leant your money through other sites not actually make the loans themselves so they don't do any seizing or anything themselves anyone although I could be wrong as only know what I have read on this board.
Oh I don't let them get anywhere near 90 days over, in fact I dont let them get to 90 days before let alone beyond. I'm more concerned about the effect on the platform of a multitude of overdue loans defaulting rather than the individual performance of my loans.
Will be interesting to see what Bondmason will do if/when any of the loans they are involved in go beyond 90 days. Apply pressure to the other platform? There's not much more they can do I guess (unless they sell on here)!
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jan 19, 2017 17:10:45 GMT
The only potential flaw I see in your missive portlandbill is if the Asset Value is grossly exaggerated, and as a Lender you're blissfully unaware of such.
And of course the SM will seize up and be useless if there's mass selling.
I just dumped sold some Loans today and was again amazed how swiftly they went - thank God not many read this site!
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mason
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Post by mason on Jan 19, 2017 18:35:11 GMT
And of course the SM will seize up and be useless if there's mass selling. I just dumped sold some Loans today and was again amazed how swiftly they went - thank God not many read this site! It's easy to forget that there have been times in the past when shifting undesirable loans has been quite difficult. It is inevitable that such conditions will recur, and the timing may take us all by surprise.
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