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Post by flobberchops on Feb 11, 2017 11:12:37 GMT
A quick one from me. ReBS loan parts are allocated on a bid system, correct? What I don't get is why some users consistently undercut the going rate by five, ten, or even more percentage points? Surely there's virtually no chance of being outbid at even three points below average, so why would somebody be satisfied with getting, say, 7% when they could just as easily be receiving 17%? Is there some benefit I'm not aware of, such as a preferential place in the pecking order if a loan defaults, or something like that?
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kaya
Member of DD Central
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Post by kaya on Feb 11, 2017 13:05:17 GMT
No conspiracy here, and I think that some lenders are just feeling kind-hearted about lending out their money at a lower rate. The problem with the 'kind-hearted strategy' is that losses are then more likely to eat away your profits, but maybe the pay-off is feeling good about yourself.
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Post by danraj on Feb 11, 2017 14:07:38 GMT
Some lenders have been invited by the borrower and so may prefer to offer to lend at a lower rate.
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