oik
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Post by oik on Feb 20, 2018 13:56:56 GMT
every few months we go though this, "there are too many loans on the SM" then a little later "there are not enough loans on the SM" if you didn't want to invest in the loan why did you? Why are you trying to off load the loan if you wanted it? Maybe a spot of confusion sometimes with 'instant access' accounts. Taking on a loan you don't really like with the intention of off-loading it onto someone else later is fine if aware of the risks in doing that. "The best laid plans of mice and men..." and all that. For most of the loans on the SM nothing has changed other than greater availability. Wanting to sell loans because we can't sell them may not be entirely logical.
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bugs4me
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Post by bugs4me on Feb 20, 2018 14:05:39 GMT
Back to topic - all platforms are suffering (or appear to be so) from a lack of confidence. Whether it’s those perceived spurious LTV’s, lack of on-going loan monitoring, borrower background checks, etc - the list is endless.
The quickest way to sort this out IMO is for the platform to have skin in the game. Well aware the FCA discourage or prohibit platforms from being directly involved but there would be nothing to stop say Ed (as an individual) from pledging say 5% into every loan on a first loss basis. The funds would not have to be actually injected but as an IOU against any future shortfall.
That would, again IMO, regain a certain degree of lender confidence and get these loan opportunities funded. The current slow ebbing of lender confidence needs to be stopped before it gets totally out of hand.
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Post by Deleted on Feb 20, 2018 14:14:18 GMT
A transaction fee would certainly discourage me from selling loans on the SM...
... by ensuring that I never bought any loans in the first place!
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IFISAcava
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Post by IFISAcava on Feb 20, 2018 14:16:17 GMT
Back to topic - all platforms are suffering (or appear to be so) from a lack of confidence. Whether it’s those perceived spurious LTV’s, lack of on-going loan monitoring, borrower background checks, etc - the list is endless. The quickest way to sort this out IMO is for the platform to have skin in the game. Well aware the FCA discourage or prohibit platforms from being directly involved but there would be nothing to stop say Ed (as an individual) from pledging say 5% into every loan on a first loss basis. The funds would not have to be actually injected but as an IOU against any future shortfall. That would, again IMO, regain a certain degree of lender confidence and get these loan opportunities funded. The current slow ebbing of lender confidence needs to be stopped before it gets totally out of hand. That would put MT above the pack. Anyway, enough of my ramblings - what do you think Ed MoneyThing ? Kuflink do 20% via sister company, HNW do 5-10% via directors funds, so it is doable whilst still being FCA compliant
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Jeepers
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Post by Jeepers on Feb 20, 2018 19:33:41 GMT
When's the cashback coming then ?
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Post by Badly Drawn Stickman on Feb 20, 2018 19:37:04 GMT
When's the cashback coming then ? I have forgotten the current 'playbook', on the last loan was it.......carrot stick white Knight or stick carrot white knight
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Post by elephantrosie on Feb 20, 2018 21:49:54 GMT
please dont make it another CB loan to attract investors. too many of these recently.....
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Jeepers
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Post by Jeepers on Feb 20, 2018 21:59:06 GMT
Well if it continues filling at it's current rate, it'll take about 26 days to fill.
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elliotn
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Post by elliotn on Feb 21, 2018 0:36:57 GMT
please dont make it another CB loan to attract investors. too many of these recently..... MT have a business to run. Most lenders appreciate any tax free income. If a loan is filling slowly, lenders that do not like tax free income can wait to to see if CB is added and make their investment accordingly. Disclaimer: I'm a non tax payer and only invest in MT loans for the amount I expect to hold to term.
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Post by westcountry on Feb 22, 2018 17:32:53 GMT
£680,000 2nd advance against a Holiday Park Development in Scotland 1% Cash Back Offer There is now 1% cash back available on this loan. The cash back will be provided to all lenders that participate in this loan, including those already invested. The cash back will be paid once the loan has drawn down. Not for me, even with the added cashback. I've got some money in the defaulted MTAI hotel, and quite a chunk in a suspended MTAS loan, and want to see what the outcome is with these (and any more of my loans that may default before these two are sorted out) before I invest in any more property loans with MT.
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hazellend
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Post by hazellend on Feb 22, 2018 17:56:06 GMT
This is a good loan. I’d buy more into this tranch if I had available funds.
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Post by mrclondon on Feb 22, 2018 18:20:17 GMT
With what appears to be a reduction in the appetite of lenders across all the 10%+ platforms in recent weeks, it occurs to me that there may be hidden risk factors with respect to multi tranche development loans that have as yet been given little credence, namely a future inability to raise all the funds needed to complete the development. We've seen incomplete development projects pass (refinance) between p2p platforms, but rarely (if ever) to a more mainstream source of finance.
The most recent development tranches for the Bolton loan on COL have stalled with c. £490k of the £647k still available despite 15% yield on an ostensibly nearly complete development. Without underwriters willing to hold to term, it seems it is going to be increasingly difficult for large development loans to be satisfied on p2p platforms. And faced with holding to term, some underwriters (or institutional investors) would likely wish to commission their own independent QS / VR reports prior to investing (a cost that needs meeting from somewhere). New retail p2p lenders don't seem to be appearing at a rate anywhere near enough to soak up subsequent tranches, and all apart from the very largest lenders normally receive their desired per loan exposure from the first tranche.
It would be informative to know what clauses (if any) there are in borrower agreements covering the situation that subsequent tranches can't be filled by the platform. I'd hope that the platforms do have something in them covering their own backsides (i.e. that they aren't promising something which may turn out to be impossible to deliver).
In the extreme if a borrower can't finance the later tranches from the p2p platform, or refinance the whole loan elsewhere, the loan would essentially be in default but through no direct fault of the borrower. And we all know that having to realise a partially completed development is bad news.
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Jeepers
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Post by Jeepers on Feb 22, 2018 18:32:56 GMT
Correct me if I'm wrong but the biggest problem I see with DFL's (mainly on lendy) is that we're shown Loan to GDV and assured it won't go above say 70%.
There's also the risk that we'll never see that GDV if they cant obtain further funding or the developer just walks away leaving us 'holding the baby'.
What I like about this loan is that the LTV is based on todays current value and any works carried out will increase the value and therefore decrease the LTV.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Feb 22, 2018 19:41:08 GMT
The platforms could all do as assetz do with multiple drawdown loans. Don't tell investors. They list the whole loan for funding and wait for it to fill. It is then accepted and the initial drawdown goes to them in accordance with the now visible sequence. Where the residual goes and how it gets interest goodness knows. When the next tranche is due its already there to be drawn upon.
Everyone gets the quoted interest rate so all is hunky dory. No waiting anxiously for last tranches to fill in order to complete a project.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 22, 2018 20:38:30 GMT
The platforms could all do as assetz do with multiple drawdown loans. Don't tell investors. They list the whole loan for funding and wait for it to fill. It is then accepted and the initial drawdown goes to them in accordance with the now visible sequence. Where the residual goes and how it gets interest goodness knows. When the next tranche is due its already there to be drawn upon. Everyone gets the quoted interest rate so all is hunky dory. No waiting anxiously for last tranches to fill in order to complete a project. Except that's not how AC do it, each tranche is announced (supported by IMS report) & funded by the QAA and then released to the SM for MLIA to fund or not. The QAA is the defacto underwriter that allows the DFLs to work
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