MMR – Regulators against self-certification
Recent Mortgage Market Review (MMR) consultations seem to confirm the regulators stance that self-certification mortgages should be consigned to history. Rockstead has never been anti self-certification. In fact, our view has always been in line with the Financial Services Authority (FSA) initial consultations, which were announced in their ‘Dear Chief Executive’ letter in February 2004 […]
Portfolio Maintenance – Supplier Review
We speak to numerous holders of mortgage portfolios and discuss how we can help them review their Third Party Suppliers (TPS) and ensure they are complying with their contractual obligations. They are often surprised that it’s not just the Primary Servicer and Special Servicer we are referring to, but also Litigation Solicitors, Asset Managers and […]
Vendor Due Diligence
An interesting development has been seen in the mortgage book trading scene over the past few months. Since 2007 there have been relatively few trades going on, but those that have, have been subjected to more intense scrutiny by purchasers, keen to know exactly what they are buying and how they are going to manage […]
Unsecured Lending Portfolios
The appetite for purchasing unsecured portfolios such as car loans and personal loans is growing, relative to mortgage loans. One reason for this is simply that investors are finding it hard to source mortgage portfolios because those who were looking to sell are now ‘holders’ of assets because “they have already suffered the pain and […]
Challenger banks and financial crime controls
The FCA has recently announced the results of its review of challenger banks anti-fraud processes and controls. It undertook an extensive research programme that included over 50% of relevant firms and a sample that covered 8 million customers. The review focused on the activities of digital banks, a subset of challenger banks, who use technology led onboarding processes to promote quick and easy application procedures.
Buy now pay later products and RMBS concerns
The change in approach and increased level of anxiety regarding BNPL schemes is increasing. So why are RMBS investors becoming progressively more concerned?
1) The HM Treasury consultation on the regulation of BNPL schemes highlighted interesting growth statistics: the value of transactions from the main providers had more than tripled, 11% of consumers had used BNPL since the start of the COVID-19 pandemic (around 5 million individuals) and that an FCA review had identified the size of the market in 2020 at £2.7bn and growing rapidly, possibly doubling in 2021 alone.
DB Mortgages fined £840,000 by FSA
The FSA is not letting up the pressure on lenders as evidenced by another significant fine issued against a UK lender. Yet again the amount was substantial and the resultant customer redress program comprehensive and costly. However, there was one noteworthy departure from the regulators language in this decision notice; for the first time the […]
Buy to Let Equity Erosion
As long ago as December 2001 John Tiner, the then Managing Director of the FSA, referring to buy to let lending at a CML conference, said “We would not wish to see, for example, a relaxation of loan to value or rental cover without lenders first making a clear analysis of the risks.” Clearly such […]
Data held by Institutions
It didn’t come as a surprise to us when we saw the recent comments by the chair of the Committee of Public Accounts where it was stated that both RBS and Lloyds Banking Group “found it difficult to provide the Treasury with appropriate and robust data on their assets”. We find that holders of assets […]
Missing Data
It didn’t come as a surprise to us when we saw the recent comments by the chair of the Committee of Public Accounts where it was stated that both RBS and Lloyds Banking Group “found it difficult to provide the Treasury with appropriate and robust data on their assets’’. We find that holders of assets […]
