Liz
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Post by Liz on Apr 3, 2018 8:20:45 GMT
Paul64 Lendy Support Anyone clever PROVISION FUND FUTURE CONTRACTED INCOME £2,060,594. Where exactly(not an easter pun) does that figure come from? I thought it would be a percentage of what the PF has paid out eg paid out £1.1m and expect half of that to be recovered, so a figure of £0.55m might be what I expect. Thanks
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zedi
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Post by zedi on Apr 3, 2018 13:04:40 GMT
Paul64 Lendy Support Anyone clever PROVISION FUND FUTURE CONTRACTED INCOME £2,060,594. Where exactly(not an easter pun) does that figure come from? I thought it would be a percentage of what the PF has paid out eg paid out £1.1m and expect half of that to be recovered, so a figure of £0.55m might be what I expect. Thanks "Future contracted income is expected future income that is currently being pursued from the borrower, valuer or guarantor etc… through legal avenues. Although there is no absolute guarantee of recovering these funds, this figure includes amounts that the firm is confident in its ability to recover through legal channels." So for example the 200k from PBL123 that they paid from the provision fund to lenders after the auction of the property but which they expect to recover from the other assets of the borrower (which weren´t a security of that loan contract). These assets were valued at 200k.
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zedi
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Post by zedi on Apr 3, 2018 13:13:54 GMT
PROVISION FUND FUTURE CONTRACTED INCOME £2,060,594. Was the value of the future contracted income £2,060,594 when you wrote that comment 4 hrs ago? Because now it has risen to £2,104,224. Can anyone explain that rise? Is it somehow related to the monthly interest that was paid out today?
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Liz
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Post by Liz on Apr 3, 2018 13:36:45 GMT
Paul64 Lendy Support Anyone clever PROVISION FUND FUTURE CONTRACTED INCOME £2,060,594. Where exactly(not an easter pun) does that figure come from? I thought it would be a percentage of what the PF has paid out eg paid out £1.1m and expect half of that to be recovered, so a figure of £0.55m might be what I expect. Thanks "Future contracted income is expected future income that is currently being pursued from the borrower, valuer or guarantor etc… through legal avenues. Although there is no absolute guarantee of recovering these funds, this figure includes amounts that the firm is confident in its ability to recover through legal channels." So for example the 200k from PBL123 that they paid from the provision fund to lenders after the auction of the property but which they expect to recover from the other assets of the borrower (which weren´t a security of that loan contract). These assets were valued at 200k. Yes the figure was correct 4 hours ago. OK I know where upto £1.1m has come from, the total the PF has paid out, but what about the rest? Make no sense. How can they expect to be compensated by nearly £1m more than they have lost? Surely a lawyer on here will confirm that is nonsense. My figure above of £0.55m is surely more realistic.
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Liz
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Post by Liz on Apr 3, 2018 13:44:14 GMT
PROVISION FUND FUTURE CONTRACTED INCOME £2,060,594. Was the value of the future contracted income £2,060,594 when you wrote that comment 4 hrs ago? Because now it has risen to £2,104,224. Can anyone explain that rise? Is it somehow related to the monthly interest that was paid out today? Bonkers, the figure has gone up by £44k and the PF hasn't suffered anymore losses! Is this Lendy accounting? Somebody please confirm that I'm not going crazy. It can't be because of interest because that would be paid to lenders and not the PF.
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elliotn
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Post by elliotn on Apr 3, 2018 13:51:36 GMT
I took it to mean future incomes that borrowers were legally required to make whole ie shortfalls of any disposals not just ones the PF had already coughed up on. Perhaps the latest interest run reflects additional default interest now legally owed by defaulted borrowers? On that reading once all legal avenues had been exhausted (ie the borrower essentially declared bankrupt) then LY would be obliged to admit their first losses or replenish by PF. (Guesswork as Lendy Support have not made crystal clear when crystallisation of their first loss will finally appear despite several capital losses on disposal already). |
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sl75
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Post by sl75 on Apr 3, 2018 13:58:43 GMT
Was the value of the future contracted income £2,060,594 when you wrote that comment 4 hrs ago? Because now it has risen to £2,104,224. Can anyone explain that rise? Is it somehow related to the monthly interest that was paid out today? Bonkers, the figure has gone up by £44k and the PF hasn't suffered anymore losses! Is this Lendy accounting? Somebody please confirm that I'm not going crazy. It can't be because of interest because that would be paid to lenders and not the PF. A couple of ideas: 1. Presumably interest that is charged to the borrower on the defaulted loans that the PF has bought from us now accrues to the PF - we're not expecting to be paid interest on amounts that are no longer owed to us! 2. When interest is accruing on a live loan, a portion of the accrued interest is earmarked to pay lenders, a portion will repay Lendy's costs, and presumably another portion accrues to the PF, but would only be received by the PF as cash when the interest is actually paid. The updates of these accrued balances may well occur on the same monthly schedule as the "real" interest payments.
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treeman
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Post by treeman on Apr 3, 2018 14:09:27 GMT
Was the value of the future contracted income £2,060,594 when you wrote that comment 4 hrs ago? Because now it has risen to £2,104,224. Can anyone explain that rise? Is it somehow related to the monthly interest that was paid out today? Bonkers, the figure has gone up by £44k and the PF hasn't suffered anymore losses! Is this Lendy accounting? Somebody please confirm that I'm not going crazy. It can't be because of interest because that would be paid to lenders and not the PF. Perhaps it's the interest on 'for sale' parts which is forfeited by investors when listing?
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Liz
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Post by Liz on Apr 3, 2018 14:22:21 GMT
I took it to mean future incomes that borrowers were legally required to make whole ie shortfalls of any disposals not just ones the PF had already coughed up on. Perhaps the latest interest run reflects additional default interest now legally owed by defaulted borrowers? On that reading once all legal avenues had been exhausted (ie the borrower essentially declared bankrupt) then LY would be obliged to admit their first losses or replenish by PF. (Guesswork as Lendy Support have not made crystal clear when crystallisation of their first loss will finally appear despite several capital losses on disposal already). If that is the case and it is my guess too, then that is wrong because that money will be paid to lenders and NOT into the PF. sl75 The PF doesn't hold £4.4m in loans to earn £44k in a month. Interesting idea on the "for sale" loans not earning interest, but I bet L are pocketing that.
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zedi
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Post by zedi on Apr 3, 2018 14:42:53 GMT
I don´t think that´s the case but it would be an interesting (and fair) way to fill the provision fund if the interest from the for sale loans was directed towards the PF.
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zlb
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Post by zlb on Apr 4, 2018 21:19:53 GMT
Might be niaive... Does anyone know whether mentioned loans (where pf not being applied) are subject to L suing over the valuation? Can they sue valuers if the valuer wasn't insured?
If a p2p wants FCA approval do they have to eg follow all avenues before using the pf, or are they simply not using the pf for own benefit?
Is there a reason why they can't pay out from the pf, and then legally claim costs?
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rocky1
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Post by rocky1 on Apr 5, 2018 6:23:11 GMT
lots of confusion over PF why cant LENDY just clear every thing up in one of the fortnightly BS and explain to all of us exactly how this PF operates and if and when it ever kicks in.i believe it is interest earning so does that add to the amount each month or do LENDY extract interest as a fee for monitoring it as they do with parts up for sale on the SM. the fortnightly BS would be better off dealing with lenders concerns and giving some honest answers and then at least we would know were we stand.
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Post by loftankerman on Apr 5, 2018 7:46:27 GMT
The ins and outs of the PF have never been of any concern to me as I came into Lendy regarding it as being along the lines of having a fairy godmother. I factor neither into my view of things.
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mary
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Post by mary on Apr 5, 2018 8:36:48 GMT
Might be niaive... Does anyone know whether mentioned loans (where pf not being applied) are subject to L suing over the valuation? Can they sue valuers if the valuer wasn't insured? If a p2p wants FCA approval do they have to eg follow all avenues before using the pf, or are they simply not using the pf for own benefit? Is there a reason why they can't pay out from the pf, and then legally claim costs? Lendy requires that the valuers have insurance, but refuses to disclose in which ways they are attempting to recover any shortfall as it may impact their recovery ability. I don't know of any successful recovery from a valuers insurance by a P2P platform, but I've not done exhaustive research on this. The PF is entirely discretionary, and therefore there are no rules, and where a PF exists each platform is very different in its implementation.
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withnell
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Post by withnell on Apr 5, 2018 14:35:07 GMT
From the way in which the provision fund is/was advertised, I would have an expectation that it would pay out in the event that the disposal of an asset does not realise the full capital value of the loan - clearly indemnity claims would be made but these would then pay back into the provision fund. If the fund never pays out it doesn't fulfil it's stated purpose!
I would expect that the PF be used for example for the shortfall on 155, but not for the majority of defaults where the security is still held
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