hazellend
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Post by hazellend on Sept 22, 2019 19:38:10 GMT
I've no idea how MT can move forward and create a viable business model from here (whatever actually happens to this particular loan). I just can't see how MT will regain lender confidence to fill loans moving forward even if new loan opportunities do start presenting themselves. I am surprised that you have only been around six months, yet you hold some of this loan, and others you do, what on earth possessed you to buy on the secondary market? My condolences.... at least some of us benefited from MT's good times, you do not have that, you just have their 'dog' loans. To be fair, this loan was available at a large discount and news had a positive turn to it. Unfortunately, for me I’m significantly overweight in this loan so really hoping for a speedy resolution.
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upperdeane
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Post by upperdeane on Sept 22, 2019 21:11:49 GMT
I've no idea how MT can move forward and create a viable business model from here (whatever actually happens to this particular loan). I just can't see how MT will regain lender confidence to fill loans moving forward even if new loan opportunities do start presenting themselves. I am surprised that you have only been around six months, yet you hold some of this loan, and others you do, what on earth possessed you to buy on the secondary market? My condolences.... at least some of us benefited from MT's good times, you do not have that, you just have their 'dog' loans. In hindsight it maybe was a mistake to have bought into this one and some others I have on MT, but I did get this particular investment at a discount. Sadly no new loans coming along so you are really only limited to secondary market with MT. In my opinion this can't continue if MT is to survive. But without getting some smaller loans coming through to get investor confidence to start filling I can't see how MT will turn this around any time soon. I've no problem with the odd loan going pear shaped, but with MT since I've been on board most seem to go that way sadly.
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upperdeane
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Post by upperdeane on Sept 22, 2019 21:18:13 GMT
I am surprised that you have only been around six months, yet you hold some of this loan, and others you do, what on earth possessed you to buy on the secondary market? My condolences.... at least some of us benefited from MT's good times, you do not have that, you just have their 'dog' loans. To be fair, this loan was available at a large discount and news had a positive turn to it. Unfortunately, for me I’m significantly overweight in this loan so really hoping for a speedy resolution. Indeed re news/discount you mention. For a period it sounded pretty positive. Fingers crossed for all of us it turns out well. At least the truth seems to be coming out now, which should lead to MT making more informed decisions on the best way forward next week. Part of the reason I'm a fan of more reqular updates is that I feel it gives investors a better feel of the loan itself as well as the way the platform and its staff operates. To me personally both are needed to make a more informed decision. Sadly, my recent suspicions have become true on this particular loan as some truths have begun to emerge here. Fingers crossed.
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cedarcourtcapital
Member of DD Central
Listening is not the same as understanding
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Post by cedarcourtcapital on Sept 22, 2019 22:07:24 GMT
Following the logic about informed lender decisions, it could be argued that when a loan's secondary market trading is suspended, so no decision/actions can be taken, there is no need for MT to release information.
You could also argue, and this is a bit more of a stretch, that MT did not ought to be releasing information which might affect perception of a loan, that they are not 100% sure is accurate. Clearly following this edict would have had them silent on the two loans, the repayment of which they are currently mis-managing.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Sept 23, 2019 8:55:30 GMT
I offloaded the vast bulk of my holding in this one at 98.5%, but at a time when the spin was fairly positive. However, I looked at it quite simply in as much as "if this loan repaid tomorrow at 98.5% would I be happy/relieved?" I had to answer "yes" so sold as much of my holding as I could.
Honestly, I'm not gloating as if this does repay I'll have lost some capital but having been with MT from the start my trust and faith is quickly draining away.
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corto
Member of DD Central
one-syllabistic
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Post by corto on Sept 23, 2019 10:36:07 GMT
Following the logic about informed lender decisions, it could be argued that when a loan's secondary market trading is suspended, so no decision/actions can be taken, there is no need for MT to release information. You could also argue, and this is a bit more of a stretch, that MT did not ought to be releasing information which might affect perception of a loan, that they are not 100% sure is accurate. Clearly following this edict would have had them silent on the two loans, the repayment of which they are currently mis-managing. Suspended loans have a high impact on platform risk perception. No information increases pressure to sell in line with elapsed time. Yesterday you could have had Pawn at a discount. A relief every now and then may help to keep the lender base calm.. .. or the opposite
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upperdeane
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Post by upperdeane on Sept 23, 2019 20:27:49 GMT
Update on MT platform.
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Post by brianac on Sept 23, 2019 20:54:36 GMT
Not unexpected.
But a "tight lipped" update nevertheless.
Surprised it not actually in default yet.
Brian
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upperdeane
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Post by upperdeane on Sept 23, 2019 21:00:24 GMT
Not unexpected. But a "tight lipped" update nevertheless. Surprised it not actually in default yet. Brian Indeed. More going on than MT released to us tonight I suspect
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Post by Deleted on Sept 23, 2019 21:15:50 GMT
To quote Blackadder,
"This stinks like a pair of armored trousers after the 100 year war"
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bulletbill
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Post by bulletbill on Sept 24, 2019 11:33:42 GMT
Interest not paid as promised. Is anyone surprised?
what is surprising is what the borrower or buyer hope to gain by continuously lying only for their promises to be exposed as a lie the very next day.
“We continue to work towards swiftly concluding the matter.”” Really? In what way?
I know we shouldn’t let emotions creep in but seriously enough is enough.
Default the loan. At 62% LTV why wouldn’t we have the upper hand and be confident of a full recovery. I think sadly we all know the answer.
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bulletbill
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Post by bulletbill on Sept 24, 2019 13:25:52 GMT
Interest not paid as promised. Is anyone surprised? what is surprising is what the borrower or buyer hope to gain by continuously lying only for their promises to be exposed as a lie the very next day. “We continue to work towards swiftly concluding the matter.”” Really? In what way? I know we shouldn’t let emotions creep in but seriously enough is enough. Default the loan. At 62% LTV why wouldn’t we have the upper hand and be confident of a full recovery. I think sadly we all know the answer. If you think that by defaulting the loan and entering into an Administrative process you will get full recovery then you are very sadly mistaken. History shows, especially in Liverpool that "distressed" sites will sell at something approaching less than 50% of current valuation. Add to that the costs and fees associated with this process and you will be lucky to see 35% to 40% of your capital returned. The time has come for lenders to be calm and let MT get on with managing the process. They are being told the truth by the Borrower's solicitor and that is now a step forward. The people proposing to fund the site purchase are a well respected company and we need to respect MT's handling of this situation. Whilst some lenders are complaining about no interest payments being received for 4 months, I would point out that the Scottish Holiday Camp loan has paid no interest for over a year and that is now, hopefully, progressing to a conclusion. Lenders should stop pestering MT for continual updates and let them manage the successful conclusion of this loan and that will not be done by defaulting it. I’m ok to expose my naivety here, but I didn’t understand that even when LTV are correct we lenders could expect a 65% loss in a default scenario. Where LTV are incorrect we lenders could expect up to 100% loss in a default scenario. It seems at no point in time are lenders in a position of power when a borrower decides they can’t or won’t pay back.
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cedarcourtcapital
Member of DD Central
Listening is not the same as understanding
Posts: 190
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Post by cedarcourtcapital on Sept 24, 2019 15:08:06 GMT
I’m ok to expose my naivety here, but I didn’t understand that even when LTV are correct we lenders could expect a 65% loss in a default scenario. Where LTV are incorrect we lenders could expect up to 100% loss in a default scenario. It seems at no point in time are lenders in a position of power when a borrower decides they can’t or won’t pay back. Welcome to the current state of property development P2P! Unfortunately we started to see the end of the all too brief 'good old days' of P2P property loan origination about 2 years ago. Since them platforms have brought dross, the lowest of the low, to the market. This was because in the boom times anything got away, and platforms got greedy. Their own action have brought the current situation where the loans they have made have no viable exit strategies, so cannot be repaid. When was the last MT loan that repaid on time?
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bulletbill
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Post by bulletbill on Sept 24, 2019 15:35:31 GMT
I’m ok to expose my naivety here, but I didn’t understand that even when LTV are correct we lenders could expect a 65% loss in a default scenario. Where LTV are incorrect we lenders could expect up to 100% loss in a default scenario. It seems at no point in time are lenders in a position of power when a borrower decides they can’t or won’t pay back. And now you understand the risks associated with p2p lending. It is for many borrowers the last resort. They may be paying up to 25% interest (or even more) as they can not raise the funds through other commercial channels. Valuations carried out on behalf of p2p platforms are notoriously inaccurate and generally err on the side of the borrower There’s no doubt that some of these borrowers have no intention of repaying right from the off. These are not viable investments, I believe as the more naive lenders, like myself, finally wise up (learn the hard way) the platforms will see availability of funds dry up.
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upperdeane
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Post by upperdeane on Sept 27, 2019 17:31:50 GMT
Brief update on MT site.
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