Mortgage lending – managing workflow and margins
2019 has been an interesting year for mortgage lenders and despite generally pessimistic predictions at the end of 2018, most lenders we work with seem satisfied with their net book growth. However, three factors have presented lenders with significant challenges this year; the management of flow rates, net interest margins and cost controls. Flow rates: […]
The RMBS market is alive and kicking
It also reinforces the continued support for specialist or non-bank mortgage lenders, particularly from global pension funds and debt investors when a number of them are understandably unhappy about the recent lack of central bank funding support. Investors in UK based RMBS have, over the last decade or so, become more confident in the underlying […]
The cost of compliance failure
The FCA website shows the level of fines imposed during 2019 currently stands at a shocking £392 million. That number is significantly up from £60m in 2018 and £229m in 2017. The total cost of failure is, of course, substantially higher than just the fine! It needs to include the investigation costs, administration costs of […]
Risk mitigation in funding later life lending
Later life and ‘last time’ buyer lending is a product area where growth rates are outstripping traditional lending. Some commentators are genuinely surprised at the growth and innovation over the last 6 months But looking at the drivers, it is not surprising to see why. Many lenders are looking to develop product ranges away from […]
NPL trades are not dead
Some commentators have suggested that 2020 will be a quiet year for portfolio trades, on the basis that any holder of an asset who might have been minded to dispose of part or all of a portfolio would have done so by now, particularly if it is in the NPL category. We do not share […]
CBILS rule breaches under the spotlight
The timing may seem a bit strange, but the focus, as the scheme is about to come to an end, has been redirected to the issue of compliance. We suggest this should have been done earlier in the process. The early focus of CBILS funders and lenders was the quick processing of loans to assist […]
Rockstead – Staffing Services in 2020
We are very wary of random statistics predicting annual market outturns, especially at the start of a year, but the early 2020 signs indicate that pent-up demand might finally be released. So why are we feeling positive at this time? Firstly, in respect of lending, UK Finance has reported that December 2019 lending saw an […]
‘Buy now, pay later’ market is an FCA target
Followers of FCA regulatory trends know that what appears in a consultation today is likely to become the rule tomorrow – or at least remarkably close. This shows the detailed thought process and analysis the FCA carries out before going public. The same can be said for information contained in FCA annual reports or outlooks. […]
P2P funders seek access to independent reviews
Over the last 12 months the loan based P2P industry has seen substantial change – partly driven by the many high-profile platform failures, coupled with the resulting contagion in the industry, and also partly due to increased regulatory scrutiny. The latter was described as a watershed moment for the industry and it is fair to […]
Lifetime mortgage providers under the regulatory spotlight
Regulatory guidance lands on lenders’ desks in a variety of formats; guidance notes, consultation documents, policy updates, notifications of regulatory fines, Dear CEO letters and, on occasions (in respect of key concerns) letters addressed to the whole Board of Directors. The latter should currently be a focus of Lifetime Mortgage Providers’ Boards as they received […]
