kulerucket
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Post by kulerucket on Feb 10, 2017 21:33:33 GMT
So according to the General Update email I just got, things are about to be shaken up a bit. Either there will be a number of new defaults or the repayment dates of all of the negative ones will become positive. Interesting times!
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 10, 2017 21:35:08 GMT
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registerme
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Post by registerme on Feb 11, 2017 11:02:47 GMT
It is, but it might be worth having a separate discussion thread for the default policy seeing as the SM changes are attracting a lot of commentary in their own right.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 11, 2017 11:23:27 GMT
It is, but it might be worth having a separate discussion thread for the default policy seeing as the SM changes are attracting a lot of commentary in their own right. Good idea - maybe harvest the subject from the other thread? A lot of what can be discussed has been discussed 
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Post by Deleted on Feb 11, 2017 11:58:15 GMT
Yeah, good idea to split them out into a separate thread imo
Personally, I don't really care about the INPL changes, but the default changes are very interesting
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Post by GSV3MIaC on Feb 11, 2017 14:35:22 GMT
/mod hat off
I suspect (as other have long suspected) the default policy email merely clarifies what they have already been doing, although it would be nice to have (sooner, rather than later) clarification of which loans are in which 'not quite defaulted but a bit wobbly' status, and by how far. Glad to see SS spell it out though. I wonder what effect the 'flagging' of wobbly loans will have on their SM sales rates.
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james
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Post by james on Feb 11, 2017 14:52:01 GMT
One interesting thing is that they appear to contemplate operating a false market for up to five days after default. That would seem to create liability to those who buy while the false market exists.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 11, 2017 15:09:43 GMT
/mod hat off I suspect (as other have long suspected) the default policy email merely clarifies what they have already been doing, although it would be nice to have (sooner, rather than later) clarification of which loans are in which 'not quite defaulted but a bit wobbly' status, and by how far. Glad to see SS spell it out though. I wonder what effect the 'flagging' of wobbly loans will have on their SM sales rates. Well... in that case there are 2 loans that according to the new rules deserve a big red box (unless discretion is being used... and if so there needs to be some clarity here). Also, up to the 1st every loan bar the garden centre is paying interest; new rules mean they won't after they reach negitive 90 days
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jamesc
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Post by jamesc on Feb 11, 2017 15:26:07 GMT
/mod hat off I suspect (as other have long suspected) the default policy email merely clarifies what they have already been doing, although it would be nice to have (sooner, rather than later) clarification of which loans are in which 'not quite defaulted but a bit wobbly' status, and by how far. Glad to see SS spell it out though. I wonder what effect the 'flagging' of wobbly loans will have on their SM sales rates. Well... in that case there are 2 loans that according to the new rules deserve a big red box (unless discretion is being used... and if so there needs to be some clarity here). Also, up to the 1st every loan bar the garden centre is paying interest; new rules mean they won't after they reach negitive 90 days Is anyone able to clarify if you sell a loan that's older than 90 days but not defaulted do you lose the interest accrual ? If so what happens does the buyer receive it ? Is this policy only for new loans or does it include current loans with negative days if so does it mean they are going to default some loans and other loans will not pay interest only accrue it. Some clarity is needed !
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 11, 2017 15:31:23 GMT
Well... in that case there are 2 loans that according to the new rules deserve a big red box (unless discretion is being used... and if so there needs to be some clarity here). Also, up to the 1st every loan bar the garden centre is paying interest; new rules mean they won't after they reach negitive 90 days Is anyone able to clarify if you sell a loan that's older than 90 days but not defaulted do you lose the interest accrual ? If so what happens does the buyer receive it ? Is this policy only for new loans or does it include current loans with negative days if so does it mean they are going to default some loans and other loans will not pay interest only accrue it. Some clarity is needed ! The policy only starts on the 1st - you accrue interest but will only have it paid to your account when the borrower 1. sends interest to cover that period, 2. the borrower repays in full, 3. The assets sell sufficiently covering the cap + interest (if the loan defaults). Of course if the loan defaults and the sale of the assets fail to cover the interest (and capital) you may never see your interest (depends on the PF) Selling on the SM makes no difference - you keep all the interest up to the point it sells, but you'll have to wait for the above (if they occur at all)for the interest that occurred while the loan is in negative 90-days to be paid.
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star dust
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Post by star dust on Feb 11, 2017 15:53:34 GMT
I think judging by what's NOT on the SM the new rules don't seem to have sunk in yet, on the other hand a big red box was little deterrent to some puchasers before it was removed from view, so who knows .......
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jamesc
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Post by jamesc on Feb 11, 2017 16:03:27 GMT
Is anyone able to clarify if you sell a loan that's older than 90 days but not defaulted do you lose the interest accrual ? If so what happens does the buyer receive it ? Is this policy only for new loans or does it include current loans with negative days if so does it mean they are going to default some loans and other loans will not pay interest only accrue it. Some clarity is needed ! The policy only starts on the 1st - you accrue interest but will only have it paid to your account when the borrower 1. sends interest to cover that period, 2. the borrower repays in full, 3. The assets sell sufficiently covering the cap + interest (if the loan defaults). Of course if the loan defaults and the sale of the assets fail to cover the interest (and capital) you may never see your interest (depends on the PF) Selling on the SM makes no difference - you keep all the interest up to the point it sells, but you'll have to wait for the above (if they occur at all)for the interest that occurred while the loan is in negative 90-days to be paid. Thanks CD that makes sense I guess the big question is what is going to happen to the existing 90+ negative day loans ?
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grahamg
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Post by grahamg on Feb 11, 2017 16:38:23 GMT
Question is , will or can SS apply the new policy rigorously to the whole existing loanbook, or just new loans.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 11, 2017 16:45:48 GMT
Question is , will or can SS apply the new policy rigorously to the whole existing loanbook, or just new loans. Since it occurs on the 1st of the month (so all previous interest has been paid) my guess is the policy will effect all present and future loans.
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ablender
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Post by ablender on Feb 11, 2017 17:13:58 GMT
Question is , will or can SS apply the new policy rigorously to the whole existing loanbook, or just new loans. Since it occurs on the 1st of the month (so all previous interest has been paid) my guess is the policy will effect all present and future loans. This may open a can of worms if people already holding some loans suddenly start accruing interest instead of paying, if these same people do not manage to sell their parts before the new rules kick in. I would surely object if I was in that position. I say new rules because all negative day loans were paying interest unless formally defaulted.
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