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Post by jevans4949 on Aug 29, 2017 15:04:24 GMT
... which leads one to ask: if full recovery was a prospect, why would Assetz ask users to vote on a debt forgiveness proposal? Also, how do Provision Fund trustees decide whether full recovery is/was a realistic prospect? would it be possible to make it clear in every vote request if this scenario occurs so lenders don't inadvertently fall foul of this clause? One problem I foresee is that Assetz would need to express an opinion along the lines of "this guy has asked for a debt forgiveness deal, but we believe that if we called in the receivers we could get the lot back". BTW, I should state that I am not personally invested in any of the provision-backed accoiunts, only MLIA.
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Post by crabbyoldgit on Aug 29, 2017 17:37:05 GMT
Sorry i dont,well can not think of any deal in which I will do debt forgiveness. The lack of financial consequence of failure is what got us all in this mess and sadly no lessions appear to have been learnt.However any package that a borrower can put together, extended terms even lower interest rate maybe, i am more than interested in looking at. My personal thoughts are if AC present a plan offered by the borrower for a full recovery then they must feel there is a least a reasonable chance of success even if the nose must be held a little.I do not think AC would waste our time or their reputation on some fantasy plan with no chance of its success.So if a plan is offered in my opinion the protection fund is off the table if the deal is rejected.
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Post by elephantrosie on Aug 31, 2017 23:20:32 GMT
im even more surprised that 6.5% manual loans exist. why do people invest in them when they can get PF on 7% accounts?
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jonah
Member of DD Central
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Post by jonah on Sept 1, 2017 5:34:24 GMT
im even more surprised that 6.5% manual loans exist. why do people invest in them when they can get PF on 7% accounts? Diversification.
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Post by chris on Sept 1, 2017 6:06:13 GMT
im even more surprised that 6.5% manual loans exist. why do people invest in them when they can get PF on 7% accounts? Diversification. And loan availability, and risk profile, etc. A 6.5% MLIA loan will not be in the 7% accounts, so it's not like you'd earn more in the 7% accounts on the same loans. MLIA rate is the maximum any lender can earn for a given loan.
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jlend
Member of DD Central
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Post by jlend on Sept 6, 2017 12:48:50 GMT
... which leads one to ask: if full recovery was a prospect, why would Assetz ask users to vote on a debt forgiveness proposal? Also, how do Provision Fund trustees decide whether full recovery is/was a realistic prospect? would it be possible to make it clear in every vote request if this scenario occurs so lenders don't inadvertently fall foul of this clause? Just FYI. I emailed the question to AC. They have just confirmed back that on future votes it will be made clear if this clause applies. "In a situation where Lenders vote to accept a proposal from a borrower for debt forgiveness when there is a clear alternative that offers the prospect of full recovery of Lenders' funds, the Provision Fund will not normally cover losses for those individual Lenders who voted to accept that loss. Lenders that did not vote or that individually voted against taking a loss should expect to be covered by the Provision Fund irrespective of a majority decision to take a loss."
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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 Sept 6, 2017 13:00:06 GMT
And loan availability, and risk profile, etc. A 6.5% MLIA loan will not be in the 7% accounts, so it's not like you'd earn more in the 7% accounts on the same loans. MLIA rate is the maximum any lender can earn for a given loan. It will also not be in my MLIA!!!!! 
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