Sub Prime lenders

homer_j_3 · 26 April 2006 at 4:58PM

emmaHarris wrote:

Brb I promise in the meantime can I suggest you look at KMC accounts:)

What has KMC got to do with my post. If you are referring to the section where I said KMC are not huge players in the securitisation field then the accounts wont disprove that. I didnt say they didnt do it, I just dont think its the staple of their buisness.

I do look forward to the responses to my points and not further political statements about HM treasury/the government/general subprime market.

emmaHarris_2 · 26 April 2006 at 5:39PM

I have got to say that if you are trying to debate something, you should be debating on facts not generalisations and assumptions gained through poorly supplied information. I couldn’t sit back and watch some of this tripe be provided to the forum any longer.

You clearly have a political agenda here and I am not bothered that you have one, I just don’t like the way you are trying to promote it. Lets hope this thread gets removed sooner rather than later.

For the record unbiased research has been continuing now for over 2 years, meetings with the FSA, Treasury, CML & FOS have taken place on many occasions. We have met with Lenders (both prime and sub prime) at very high levels We have met with SPV's and subsidiary and have been provided (some through the Freedom of Information Act) a volume of information pre and post FSA.

I would hope again that this site will enable mature and well balanced debate towards providing consumers with further information. It seesm you wish to respond but at the same time bully someone off the site.

We have met with Shelter, CAB, the Consumer Association, and other active organisations. We have visited over 35 County Courts throughout the UK. We have spoken to Judges and borrowers alike. We have met with legal entities, solicitors and law firms.

We have met and interviewed Mortgage Advisors, Brokers and IFA’s throughout the UK.

We have carried out controlled surveys and used mystery buyer techniques to ascertain well-balanced overview of the market. Of course, we always think we can learn more and open to this too. We do not have a political or private agenda and there is a high level of investment being placed in the consultations being carried out.

We have met with borrowers from all walks of life and will soon be publishing records of all these meetings in due course. As previously stated we only have the UK consumer interests are heart and we see a huge imbalance in today’s mortgage relationships. As I said we are just starting.

payless · 26 April 2006 at 5:42PM

who are "we"

emmaHarris_2 · 26 April 2006 at 5:45PM

'we' are a team of private individuals and business consultants who are being paid to carry out the research and present our findings to those who are paying for the research to be carried out.

birmanza · 26 April 2006 at 5:54PM

Wow , what Madness!! Emma, if you had a point to make in the beginning it has been completely lost ! Seriously you should call it a day!

homer_j_3 · 26 April 2006 at 5:55PM

emmaHarris wrote:

We do not have a political or private agenda[/qote]

So why did you tell me and the forum that you have been lobbying my local MP? Are you not trying to change laws and regulation through the government?

We have met with borrowers from all walks of life and will soon be publishing records of all these meetings in due course. As previously stated we only have the UK consumer interests are heart and we see a huge imbalance in today’s mortgage relationships. As I said we are just starting.

I look forward to seeing these details being published. I am not sure how this will be proven to be a conclusive or reliable report though due to the nature of statistical data. As they say, there are lies, damn lies and statistcs.

Anyway, you are still failing to answer why there have been no posts supporting what good the subprime market has done or justify your generalised comments. You say you want well balanced debate but you dont try and resolve a point in full, you simply open up another topic when you get any comeback.

emmaHarris_2 · 26 April 2006 at 5:57PM

I still don’t understand what you mean by this. How can you say for sure that the original lender would have dealt with this life changing occurrence any better? Sometimes a smaller company might be better at dealing with customers than a larger one?

I am not saying an original lender can or would deal with it better. I am saying however there is a stark difference between the prime market and sub prime market:
Prime lenders:
1. have high street shops (you could actually picket them if you were unhappy)
2. they have reputations to lose
3. they carry savers and current bank account holders
4. they provide mortgages from these investments
5. ROI on a mortgage account to become profitable is circa 7 to 12 years
7. They employ Mortgage Advisors both pre sales and post sales
8. Repossessions is normally the last resort
9. Average default time for repossessions is 6+ months and sometimes longer
10. They have direct reputations to lose as they did back in the early Thatcher years of 1990's when interest rates were sky high at 15% and repossessions were at their highest levels.

Sub Prime:

1. Do not have high street presence
2. They will sell your mortgage to specially created subsidiaries with no reputations to lose
3. These company’s only operate to administer the mortgage account
4. They do not or seldom employ Mortgage Advisors post sales
5. Only FSA regulated Mortgage Advisors are able to discuss and advise borrowers on their mortgages or a change of the contractual terms
6. ROI on a mortgage account once securitised or through whole loan sales (same) is circa 3 years
7. Average default time to repossession 2 months

homer_j_3 · 26 April 2006 at 5:58PM

emmaHarris wrote:

'we' are a team of private individuals and business consultants who are being paid to carry out the research and present our findings to those who are paying for the research to be carried out.

Come on mods... remove the post - the poster has admitted that their is a commercial gain to what she is doing here.

emmaHarris_2 · 26 April 2006 at 6:04PM

I don’t think Kensington are major players in securitisation. They certainly do not set out knowingly that Mr Smith will be sold as soon as possible. I believe that Kensington are a mortgage company that lends money to people who do not conform to the lending criteria of the high street banks.

This does surprise me immensely. KMC are the largest of the sup prime entities. They sell over 500 mortgages per month and the only ones listed on the stock exchange. They securitise 100% of all their mortgage accounts. This is why I said read their annual accounts.

emmaHarris_2 · 26 April 2006 at 6:05PM

Quite the opposite there is NO commercial gain only outlay and investment. Where did you get that from?

Sub Prime lenders

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