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.
The risk of sole supplier audits
In the 2009 government review into banks corporate governance, led by Sir David Walker (former chairman of Morgan Stanley) one of the views expressed was that banks and other financial institutions should set up a separate risk committee with responsibility for oversight and advice to the board on current risk exposures and future risk strategies. […]
Capita v Drivers Jonas
The recent Capita -v- Drivers Jonas decision seems to have been largely missed by the mortgage trade press despite receiving some coverage in valuation related publications. However, in our view, the decision (unless overturned on appeal) has significant ramifications for lenders (residential and commercial) as well as for valuers. The claim related to a substantial […]
Mitigating risk
Standard and Poor’s have recently commented that the securitisation market during 2012 will remain slow due to wider market pressures, the fragile economic backdrop and subdued underlying mortgage lending, which will likely hold back RMBS issuance volumes. In addition the costs of all types of funding remain high, and combined with tougher regulatory capital requirements, […]
Can TPAs survive the downturn?
The mortgage market has changed hugely since the seismic shocks of 2007/8 and it is not just lenders and borrowers who are experiencing a very different playing field from that which existed before the crash. Consider the plight of Third Party Mortgage Administrators (TPAs) who between 2000 and 2006 gorged themselves on a regular supply […]
