elliotn
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Post by elliotn on Nov 1, 2018 8:27:48 GMT
Read MrCLs post, he explained it very simply. I did read it, and my question still stands. "the minimum prevents the marginal undercutting of those who wish to attempt to sell at par" That's called rigging the market. What's wrong with someone offering to sell at a 0.1% lower price than par rather than 1%? Mr CL may be referring more to old FC practice of lenders in a beggar thy neighbour 0.001 increments (still practiceable on HC). 0.5 steps cuts out all such shenanigans with a more efficient sifting of genuine sellers from silly buggers. Just my opinion (and ACs), I will ignore yours too.
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elliotn
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Post by elliotn on Nov 1, 2018 8:08:51 GMT
Agree with all MrCL points. One way to prevent tax avoidance abuse would be to prevent sellers buying their own loan parts for a predetermined amount of time (flagged by loan part ID). It would be a shame to limit discounts because of market abuse, 1% then 0.5% steps also reduces the other types of gaming MrCL/AC identified. How is it "gaming"? it's just a way of finding the true market price between buyer and seller - an artificial minimum discount prevents that. Read MrCLs post, he explained it very simply.
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elliotn
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Post by elliotn on Nov 1, 2018 3:51:57 GMT
Agree with all MrCL points. One way to prevent tax avoidance abuse would be to prevent sellers buying their own loan parts for a predetermined amount of time (flagged by loan part ID). It would be a shame to limit discounts because of market abuse, 1% then 0.5% steps also reduces the other types of gaming MrCL/AC identified.
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elliotn
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Post by elliotn on Oct 29, 2018 7:33:49 GMT
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elliotn
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Post by elliotn on Oct 28, 2018 12:25:47 GMT
Thank you for a detailed explanation of your MO.
One thing I struggle with for your platform is the flat rate, not all projects have the same risk so there may be at least some mis-pricing implicit within the model.
Do you reject projects that would have been priced at 7% or 9% as too conservative/risky for your risk appetite?
Of course, as with Lendy (although pitched at a different segment of the market), this allows experienced lenders to arbitrage a simplistic, one price fits all model.
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elliotn
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Post by elliotn on Oct 27, 2018 13:40:54 GMT
Following for Offers:
- to make a sale against Bids whilst having an Offer listed - amend Offers within Trading page
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elliotn
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Post by elliotn on Oct 26, 2018 2:31:41 GMT
Great description of Proplend, mrclondon - thanks for it.
A couple of points to bear in mind - not all Proplend's loans are structured into 3 tranches; of the 4 currently pending, 2 have just one tranche, 1 has two tranches and the other has 3. Also, fairly tight initial investment limits apply as the loans seem to fill very quickly (much less than 24 hours); these seem to vary from £1k to £3k. Loan offerings also seem to be a couple a month although that may be an inaccurate guess.
Apologies to MT as well!
Yes, the upper tranches are only necessary if the ltv is high enough, so A only loans are sub 50% which supports cedar’s request for lower ltv’s (although priced accordingly). (No apologies but happy for this to be moved to the correct thread.)
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elliotn
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Post by elliotn on Oct 25, 2018 17:19:59 GMT
should have got the folk setting the auction reserves to do the valuations such jokers Perhaps we should follow up these loans and see who actually bought the properties and if they had any connection to Lendy or employees . Someone got a good deal. Is there no God?
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elliotn
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Post by elliotn on Oct 25, 2018 17:16:03 GMT
The two most recent loans are 8% and 10% and the one loan in upcoming is 9%. Whilst some of the loans earlier in the week were lower I's say the picture is mixed rather than falling. And with 1% cash back if you invest new money in the next few days and hold it for a couple of months. And in the previous 2 weeks there were 2 renewals at highly reduced interest rates. One went from 8.5% to 5.5 and another 8 down to 6. Increased ltv and ill considered valuation and credit reports imo. Being more choosy now on the renewal loans. But did you like the collateral?
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elliotn
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Post by elliotn on Oct 24, 2018 1:48:01 GMT
First, I’m only in this loan for a negligble sum and had already written in down, so I’m not up to date with the specific sorry story. I think, however, that the above posters have already pointed out some very solid reasons why the lending syndicate cannot be held liable to fund further tranches. I would add that these are not bilateral loans but were tradeable loans. I know of no precedent where someone who bought a loan in a secondary market via a novation or tear-up/replacement contract has ever been made liable to fund further tranches. This clearly would make no sense. Moreover, such as strange condition, if required, would need to be very clearly identified at the point of sale. I see this as a complete nonsense brought by the borrower to attempt to scare lenders. Ignore it. They echo my thoughts and I have updated my details to make ignoring it easier. However, lenders served with a claim should be aware that doing so would expose them to a judgment in default.
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elliotn
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Post by elliotn on Oct 24, 2018 1:44:19 GMT
How can an investor be accountable full stop, particularly if they never get to see the loan contract? Unfortunately, this is how, per Lendy T’s&C’s... Appointment of the agent and security trustee
When you agree to lend money using the Lendy Platform you:
irrevocably and unconditionally, appoint Lendy to act as agent on your behalf in relation to the loan and instruct Lendy to sign and/or approve the Loan Contract, any novation, and any Finance Documents as agent on your behalf;
irrevocably and unconditionally, appoint Saving Stream Security Holding to act as security trustee on your behalf in relation to the security documents set out in clause 12 and instruct Saving Stream Security Holding to sign such security documents as agent on your behalf using Lendy’s standard form security documents;
irrevocably and unconditionally, authorise Lendy to instruct Saving Stream Security Holding in relation to the Finance Documents, including without limitation the security documents and their enforcement; and
irrevocably and unconditionally, appoint Lendy to act as attorney on your behalf for all matters in connection with any novation and/or any Finance Documents
While I also think that the claim is likely vexatious, Lenders have certainly given Lendy fully authorisation to drop them right in it! You’d almost hope that Ly subrogate so much power as ‘agent’, making sole decisions at their own discretion on their direct loan dealings with the borrower, that a judge wouldn’t allow individual lenders to be sued for decisions they played no part in and were effectively only passive possessors of debt .
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elliotn
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Post by elliotn on Oct 23, 2018 10:48:12 GMT
well bling making 70% on average on other p2p sites...less another 20% for fees and sarnies....reckon on 50% and you may be ok. Bling is very hard to sell. Much riskier than property in general. I hope the bling has been reasonably valued. I don’t hold any bling after experience of trying to sell some and realising it is not worth anywhere near its “value” Don't tell unbolted that! Joking aside, I got full recoveries from all their auction sales
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elliotn
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Post by elliotn on Oct 23, 2018 1:04:25 GMT
I think the bigger issue here is the news that investors (us) have potential legal liabilities to the borrowers. I am fine with taking risks on my capital in return for a high interest rate. But the idea that I might have practically unlimited (or at least greater than my total assets) liability and court costs as a result of making the loan on a P2p site is quite a shock. Thankfully I'm not in this loan but I fail to see how a lender could have any outstanding and legally enforceable obligation toward a borrower. What legal duties have lenders failed to meet - that they chose not to fund a new tranche? How does the borrower even know who the existing lenders are? If Lendy has provided the borrower with that information then it must surely be in breach of customer confidentiality regulations. You must think that a borrower felt there was a contract with lenders to fund a development. The failure to honour the contract would cause them loss. Presumably lenders’ details would only be provided at the request of a judge in compliance with GDPR and Lendy would not normally provide these upon a borrower’s request. Legal Disclaimer - for the avoidance of doubt, I am referring to the implications of such lender agreements in general, not about any specific borrower or loan.
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elliotn
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Post by elliotn on Oct 23, 2018 0:39:22 GMT
So they can take as long as they want and charge what they want. I think you might have overlooked the relevant bit there. The sandwich filling?
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elliotn
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Post by elliotn on Oct 22, 2018 8:35:01 GMT
Hi, anyone have link for this? I only get FAQ which says £50 for £2k - trying to confirm member of household, term, when paid, thanks. Try, www.zopa.com/promo/member-referral-april-2016Found from logging in, clicked refer a friend from dashboard then hit terms & conditions. Brilliant, long time since I logged in Thanks!
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