Consultant Zone

Risk Identification

When driving a car it’s obvious that you need to keep your eyes on the road ahead, but it’s a poor driver who does not look in the rear view mirror from time to time or learn from past driving experiences.

Similarly within the mortgage industry we are all focused on the way ahead, hoping that gross lending will increase; more people can buy houses or obtain affordable re-financing, but have we learnt the lessons from the past? Has TCF really been embedded into our businesses and are we servicing existing customers correctly?

The rising number of cases in longer term arrears continues to be a problem. The pressures on the economy, the increasing amount of austerity measures which have had to be imposed means even more borrowers are likely to fall into arrears.

An important factor is that all parts of the market pull together to ensure the latest forbearance strategies, regulatory guidance and prudential management are correctly adhered to from a customer and lender perspective. As part of that collective strategy is the need for constant review against the in house policy and procedures which have been set. We often hear the cry “I don’t have the time” but that’s where independent help can resolve any issues.

As experts in risk identification and a provider of third party oversight, Rockstead can ensure that the correct policies and procedures are being implemented, meaning that holders and investors of loan assets can gain an early insight into any potential risks they may be exposed to.

2013 will undoubtedly provide interesting challenges and opportunities within the lending arena. It makes sense to ensure that lessons learnt from the past are embedded into current policies and procedures and the increasingly demanding rules and regulations laid down by the financial services regulator are thoroughly adhered to.