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  1. #361
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    Quote Originally Posted by joker View Post
    Well that didn't last very long. 5 hours later and I can't see where $700k has gone! Certainly wasn't picked up by SM lenders.
    Attachment 9253
    @joker... Your were looking at 5 Year loans only whilst icyfire was looking at all the terms of loans!

  2. #362
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    Quote Originally Posted by icyfire View Post
    SM has got to make money somehow. SM is a business with employees, rent, etc to pay as well as a platform to maintain and marketing expenses and the list goes on.
    That's what they charge a service margin for, isn't it?

    BTW Saamee, I was asking a question, not making a statement...

  3. #363
    Advanced Member Entrep's Avatar
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    It looks like as more money comes into SM from investors, interest rates you need to bid to get invested come down (logical I guess), shame it doesn't work the other way as more borrowers come onto the platform.

    Here I am looking AGAIN for somewhere to invest my money easily.

  4. #364
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    Quote Originally Posted by Entrep View Post

    Here I am looking AGAIN for somewhere to invest my money easily.
    Exactly.. We all got the Email from SM yesterday, saying "Don't Give Us Any More $$$ Right Now"!
    Last edited by Saamee; 26-10-2017 at 09:17 AM.

  5. #365
    Squirrel Mortgages (Verified) JB@Squirrel's Avatar
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    Quote Originally Posted by beacon View Post
    Interesting that Squirrel issues loan to borrowers at fixed listed rates (average 12.56% according to the site currently), takes its 2% cut, deducts its 2% shield buffer, but then also keeps the Investor rate difference (loan bought first by squirrel at 9%, then onsold to investor at 8.5%, due to lack of sufficient loans causing investors to undercut each other). Isn't this a hidden unadvertised fees on loan, or have I misunderstood this model?

    Sorry Beacon hadn't been on here a while so just picked up your query.

    The borrower rates are carded based on their risk (including applied risk premium) and assuming the high end of the investor bid spread. The borrower always gets the advertised rate. The Squirrel margin is also always the same (1% on A grade, 2% on B grade ....) If investors bid down their return we pass the difference to the reserve fund which benefits all investors and covers any potential losses.

    At the moment we've had a bit of a surge in investor activity so we have surplus funds in the platform and investors have started to bid rates down a bit. This will be good for growing the reserve fund.

    We've got about $1m of borrowers coming through monthly and whilst that is growing, it's only growing slowly. The joys of 100% retail funding and wanting to keep acquisition costs sustainable!

  6. #366
    Squirrel Mortgages (Verified) JB@Squirrel's Avatar
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    Quote Originally Posted by beacon View Post
    Free market in the ability investors have to undercut each other and jump the Q. But if you are Squirrel, and you buy a $100,000 loan at 9% for 5 years and sell it a microsecond later to 10 investors at 8.5%, you are reaping 0.5% on the life of the loan with no money down. In my understanding it is called Fee, not Free Market... but maybe that's not what Squirrel is doing... Or is it?
    We don't bid on any loans for 24 hours and then we only bid in at the maximum investor rate to settle the loan, so Squirrel never makes any money on the secondary market and the investor return is maximised. We essentially only bid in where there is a shortage of investor funds to get the loan settled. We're not bidding at all at the moment as plenty of investor bidding going on. Hope that clarifies.

    We've had a big week of loan settlements this week, so will hopefully clear surplus investor funds over the coming couple of weeks.

  7. #367
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    Thank you JB. Refreshing to see your engagement and transparency - to educate and clarify ...

  8. #368
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    Not much going on at Squirrel lately. I've had 3K waiting to be invested for 5 years at 8.75% now for over a week and it's still sitting there. Longer term, there needs to be a better re-investment process than this otherwise surplus cash is just sitting around too long.

  9. #369
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    Quote Originally Posted by morphs View Post
    Not much going on at Squirrel lately. I've had 3K waiting to be invested for 5 years at 8.75% now for over a week and it's still sitting there. Longer term, there needs to be a better re-investment process than this otherwise surplus cash is just sitting around too long.
    Clearly it is related to the availability of loans rather than the "reinvestment process"

  10. #370
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    Quote Originally Posted by morphs View Post
    Not much going on at Squirrel lately. I've had 3K waiting to be invested for 5 years at 8.75% now for over a week and it's still sitting there. Longer term, there needs to be a better re-investment process than this otherwise surplus cash is just sitting around too long.
    Took two weeks for my 2 year offers to be taken and the one remaining on a 5 year-term has been sitting there for almost a month now. So yeah, not much demand there at the moment. But maybe after the holidays ..............

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