A default under this section refers to loans that;
- are no longer reasonably expected to be paid; and/or
- are no longer reported to the lender(s) as due to them, whether or not funds may still be recovered from the borrower by other means such as debt collection procedures; and/or
- have been sold pursuant to a debt collection procedure.
Here we look at the number of loans that we have taken through the mortgagee sale process and have been sold, some perhaps resulting in a loss (or ‘write off’) of funds to the lender (and therefore our investors). These amounts are aggregated from 1 December 2016 to date.
We look at two key measurements:
|Gross value of default loans, potential loan write off||$378,467.63|
over 1 loan (with such number of loans representing less than 1% of our total loans).
Gross value of loans is the total value of all loans where we have sold the asset(s) through the mortgagee sale process. This is the loan amount owed at the time of sale, including the associated mortgagee and legal costs.
|Net value of actual loans written off (loss to the lender/investors)||$0|
over 1 loan
Net value of loans is calculated by taking the gross value of write off loans (as above) minus the proceeds recovered from the sale of the asset(s). This amount is what the loss was to the lender and investors after enforcement action against the applicable Borrowers was completed.