Lendy - Pipeline Loans Update

Interesting to see loans coming on all the time - but WHY are we seeing an increasing number of older loans going seriously bad - there is a worrying trend that as loans come close to repayment, there is clearly no exit strategy, and the vast majority seem to be WAY overvalued. We are fed glowing reports (Gravel quarry, Waste recycling plant, Cotswold manor house, Prestatyn leisure complex etc) which all of a sudden turn into legal 'glitches' and then a week or so later "the receiver says" and the loan is frozen.  If the valuation surveyors did their job, I suspect half of these loans would never go to market, and if they did, the valuations should be 50% less than they are - not to mention the clearly very shady background of some of the lenders.  Lendy is not looking good at the moment - and nor are their valuers and loan processing people who should be doing far more due diligence on the borrowers who are clearly using the system to screw money out of P2P lenders.  I've stopped telling folk about Lendy - its embarassing to see how many loans are going down the plughole.

AIUI Lendy are no longer allowed to lend - who else were you thinking of?

As chartered surveyors ourselves, if we did a building survey and left someone with a liability for latent defects, we'd be hit with a lawsuit.  I'm not really sure how the valuation surveyors are managing to put values on properties that when Lendy attempt to sell, are not even getting a whimper of interest from the buying public. I think at these silly values, Lendy need to be doing max of 50% LTV to have a ghost of a chance of recovery, and insisting on the borrower signing over their home, car, and old clothes instead of accepting security of a property owned by a company set up to do a development, so clearly no recourse on the borrower.  Seems to be recipe for disaster.

But the pipeline is full of potentially disastrous bad debt.  Unfilled tranches - are only unfilled because people can see how much bad debt is building up and don't see Lendy as secure enough - Lendy NEED to aggressively deal with this - the secondary market is barely moving - you'd never be able to sell anything on it at the moment, and if you list a tranche on the SM, you immediately lose entitlement to interest even if the tranche never sells..  Why would anyone put anything on the SM?  Lendy have regally screwed it in my opinion - too much bad debt, not enough due diligence, huge over-values of subject properties, and involvement with some very risky borrowers.  

Not sure when these appeared on the website, but I don't think they were there yesterday

DFL019 - Dev Tranche 7 - Loan Value £257,760
DFL008 - Tranche 12 - Loan Value £296,956

and the much heralded Pre-fund by rate is also present

"Pre-fund loans by rate
Choose a default investment amount for every pipeline loan with a specific rate.
Loan rate Pre-funding
7% loans
8% loans
9% loans
10% loans
11% loans
12% loans "

Can't see that I'll ever be using it though.

Cowes?

/mod hat off

That's 18% LTV now .. which could well be 180% LTV (like some others I could mention) by the time the builder downs tools, one assumes?
ISTM that LTVs for these DFLs really ought to be expressed as an imaginary number, (X+ Yi), where Y is the 'IF' value. 8>.