With several lenders using the acquisition of high-quality loan portfolios to support their growth aspirations, we are proud to have been involved with successful bidders for loan books for over 10 years.
With some books being acquired at a slight discount to book value, the detailed file reviews which provide information and data to assist in the assessment of the risks involved and ultimately the value of the transaction, often assist the key decisioning process.
Reviewing portfolios has given Rockstead an invaluable insight into the underwriting and processing techniques adopted by many different lenders. This in turn has enabled us to analyse both good and bad practises within the industry and helped us to benchmark parts of the market. The knowledge we have gained over the 10 years of our existence, backed up by the experts in our team, has resulted in significant benefits for our clients.
Firstly, when evaluating loan books, vendors and purchasers are re-assured that our experience with successful bidders helps us identify and highlight potential areas of concern that may not be obvious at the outset. By tailoring reviews to match client needs with our own suggestions, the final scope provides a solid foundation for any review and our philosophy of ‘tell it as we see it’, helps to focus the report output and eliminate any grey areas.
Secondly, potential funders of new and existing lenders benefit from our experience of re-underwriting different loan classes. One of the main general criticisms levied after the global financial crisis, albeit with hindsight, was the lack of independent reviews that were carried out, particularly on the assets involved in forward sale agreements. We have been engaged in hundreds of individual reviews to ensure that the criteria agreed between lender and funder is being followed and importantly reporting our opinion to both parties, with the added benefit of helping improve communications.
Overall the widespread expertise Rockstead has at its disposal clearly benefits potential buyers, sellers and funders operating in the lending arena. To take advantage of that experience and mitigate risks please give us a call.