To adhere to our regulatory responsibilities in not providing credit to cover shortfalls, Lendy will be introducing a new process within Available Loans (the secondary market), whereby unfunded loan availability will appear above loans parts that have been put up for sale by investors. This is to ensure loans are completely funded, prior to sales occurring.
If a new loan or tranche does not fully fund, the loan will appear above loans parts that have already been put up for sale by investors on the Available Loans or Secondary market page.
Existing loan parts for sale on the secondary market will currently be put on hold in order to ensure the availability of new loans or additional development tranches are completely funded prior to existing sales occurring. Once the newly available loans are 100% filled, then the previous loan parts owned by investors that were currently for 'For sale' will then be eligible to be sold.
As an example, DFLXXX has been funded 95% on a £250,000 loan leaving £12,500 unfunded. Lendy would place this unfunded £12,500 on the Available Loans in order to fulfill the loan ahead of any ‘For Sale’ loan parts. As soon as the loan is 100% filled, loan parts owned by investors that are 'For sale' will then be eligible to be sold.
The change became effective from Friday September 1 2017.