GeorgeT
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Post by GeorgeT on Apr 29, 2017 16:20:02 GMT
I note that Para 1.7 of the standard Lendy letter of instruction to valuers states:
However, Lendy's general update to investors email dated 28/4/17, under the section 'The five-step DD process' states:
Aren't these statements contradictory?
If so, could it be because they are encouraging valuers to err on the side of caution?
*Bold font in quotes is added by me.
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ben
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Post by ben on Apr 29, 2017 16:24:22 GMT
God help the banks if lendy due diligence is better.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 29, 2017 16:32:49 GMT
I note that Para 1.7 of the standard Lendy letter of instruction to valuers states: However, Lendy's general update to investors email dated 28/4/17, under the section 'The five-step DD process' states: Aren't these statements contradictory? If so, could it be because they are encouraging valuers to err on the side of caution? *Bold font in quotes is added by me.Yep, you've caught Lendy with their panties down. Well done georget. I now await the spin which will put us all completely at ease, for we have surely misunderstood? 
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mosaic
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Post by mosaic on Apr 29, 2017 17:04:13 GMT
I note that Para 1.7 of the standard Lendy letter of instruction to valuers states: However, Lendy's general update to investors email dated 28/4/17, under the section 'The five-step DD process' states: Aren't these statements contradictory? If so, could it be because they are encouraging valuers to err on the side of caution? *Bold font in quotes is added by me.The spin is that one statement is referring to DD on the property and the other is referring to DD on the applicant. Therefore the statements are not contradictory. (If I could understand smileys, I would obviously use one here).
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Post by Deleted on Apr 29, 2017 17:19:26 GMT
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madpierre
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Post by madpierre on Apr 29, 2017 17:52:57 GMT
I like the fact that mosaic has no face as it does not give me false hope, and the difficulty with smilies is humanising, unlike the other tripe we have been fed today 
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Post by freedommmm on May 1, 2017 9:27:49 GMT
I am horrified after having a look at the list of defaulted loans. The list had grown to 14 to the value of £11 million. Is this a cause for serious concern?
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on May 1, 2017 9:44:34 GMT
I am horrified after having a look at the list of defaulted loans. The list had grown to 14. Is this a cause for serious concern? It should only be a cause for concern provided;1) you can put your trust in the valuations of the property involved and 2) the quality of the legal side as carried out by FY. If like me you have serious doubts about either of these then keep your money in your back pocket. Having said that, you must factor in the return being offered on the loan and the risks as you perceive them.
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ben
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Post by ben on May 1, 2017 9:47:06 GMT
I am horrified after having a look at the list of defaulted loans. The list had grown to 14 to the value of £11 million. Is this a cause for serious concern? I am not quite sure why people are that suprised when loans on Lendy go overdue/into default there is a reason borrowers use Lendy and not a bank and it is not usually that Lendy are quicker at lending the money. A quick caculation on most of the loans and you can easily work out that:-
a) We are the one the ones taking the risk not the borrower
b) Everything has to go to plan for the borrower to make any money
c) Which loans are not worth the borrower the paying back (i.e certain office block but not the only one)
Although there is a few good loans on Lendy they currently far and between.
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adrianc
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Post by adrianc on May 1, 2017 12:56:53 GMT
Other loans such as the Leatherhead Loan (Bad PP) Point of order, Sir. The problem there wasn't the PP. It was that the builder built something that wasn't what they had PP for...
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on May 1, 2017 13:07:57 GMT
Official response link |
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sussexlender
Member of DD Central
Cheat seeking missile
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Post by sussexlender on May 1, 2017 13:43:21 GMT
The good thing is that we have the process in writing so we can see it and ask questions, which is helpful and constructive  . Failing Customers had no obvious / disclosed process of DD. It seems to have become "let's get investors to give these borrowers lots of cash and if they don't pay it back it is no loss to FC and we will stay silent and do nothing"  . Well done Lendy for publishing this process in public. |
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Post by Paul64 on May 1, 2017 13:48:41 GMT
LY deal with high-risk borrowers, which doesn't mean they should accept all applications, but there is an acceptance (as far that I am concerned) that these are borrowers who struggle to find finance elsewhere for a reason. I don't see why LY shy away from this; they should have that statement from that instruction letter on the website, on the T&Cs, maybe on every loan. What they should say is " We deal with borrowers with a high-risk level, and when you invest you should understand this" instead of trying to convince lenders that everything is dandy with regards to borrowers. However, now that rates are falling, LY probably feels that they need to argue that they are vetting borrowers more thoroughly. Security should be paramount; this is where LY should concentrate their efforts. To seek an accurate MV and only offer loans that have adequate security. From some of the current security that is listed online (and the garden centre sale), I think that LY is failing in this regards. They need to improve this side of their DD procedure because there is only so long they can hide behind the PF.
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Post by Paul64 on May 1, 2017 13:49:19 GMT
Hi, it is important that we stress this in the general instruction letter to put the valuer on notice that we rely more on the security value than a normal high street lender would. The valuer is therefore reminded to bear this in mind and to be additionally cautious when putting a value on a property.
Our DD is no less than a mainstream lender would carry out, given that the companies undertaking the DD are from mainstream lenders.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 1, 2017 14:17:49 GMT
Hi, it is important that we stress this in the general instruction letter to put the valuer on notice that we rely more on the security value than a normal high street lender would. The valuer is therefore reminded to bear this in mind and to be additionally cautious when putting a value on a property. Our DD is no less than a mainstream lender would carry out, given that the companies undertaking the DD are from mainstream lenders. I think, with certain scenarios to date, that you'd have a constructive argument on your hands with that brave statement Paul. And a bit more than simply "Instructing" and " Reminding" I suggest is also required. How about "Enforcing" for starters ?
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