Sub Prime lenders

emmaHarris_2

1. Does anyone know what the current repossession/eviction rates are in England & Wales? The CML site is out of date by nearly a year.
2. Does anyone know Beacon Homeloans...what do they do?
3. What does anyone know about Redstone Mortgages, who are they?

Garry_Anderson

emmaHarris wrote:

1. Does anyone know what the current repossession/eviction rates are in England & Wales? The CML site is out of date by nearly a year.

I had a quick look for you - unfortunately, could not find anything.

I found this for London December 2004 - quote:

Around 10,000 mortgage borrowers in London face repossession orders each year. About 8,000 households in London are more than three months in arrears with their mortgage payments.

http://www.london.gov.uk/mayor/housing/docs/housingadvice.rtf

I did not realised the situation was so bad - I wouldn't have expected this to be the total repossession orders for England.

Please answer a question for me if you will - are Sub Prime Lenders like the semi-respectable loan sharks of the mortgage world?

WoolwichSucks.co.uk - skilful.com

emmaHarris_2

Garry_Anderson wrote:

I had a quick look for you - unfortunately, could not find anything.

I found this for London December 2004 - quote:

Around 10,000 mortgage borrowers in London face repossession orders each year. About 8,000 households in London are more than three months in arrears with their mortgage payments.

http://www.london.gov.uk/mayor/housing/docs/housingadvice.rtf

I did not realised the situation was so bad - I wouldn't have expected this to be the total repossession orders for England.

Please answer a question for me if you will - are Sub Prime Lenders like the semi-respectable loan sharks of the mortgage world?

WoolwichSucks.co.uk - skilful.com

1. Hi, The Daily Mail & other Media advised that today’s high increase in house repossessions were at a 10 year high and growing, they reported that there were over 10,000+ in 2005. This is the figure on the CML web site but last updated July 2005.

2. The figure although extremely high (and we do not have interest rates at the 15%+ as per the early 1990's) does not account for sub prime lenders and certainly not for the ever increasing SPV's/Subsidiary company's.

3. Hence, the question, if anyone knew of any other source of information. The media are reporting incorrect figures and in fact the volume could be much higher.

4. In regard to your last question, I would not presume myself to accuse them of being like that but ask visitors here to really look at the business module they operate before entering into a contract. My opinion it is very clever practice and you can see examples of this in the earlier pages of this thread.

5. If Mortgage Advisors also advise this should be the very very last resort then maybe there is something of what we say being true. All is not what it says on their can!!

emmaHarris_2

I found this for London December 2004 - quote:

Around 10,000 mortgage borrowers in London face repossession orders each year. About 8,000 households in London are more than three months in arrears with their mortgage payments.

http://www.london.gov.uk/mayor/housi...singadvice.rtf

Thank you for this, we will take a look as well:)

emmaHarris_2

Please answer a question for me if you will - are Sub Prime Lenders like the semi-respectable loan sharks of the mortgage world?

There are some that I wouild certainly class as this. Ligitimate loan sharking. Remember they are in the business of 'buy & sell' of mortgages portfilios and cosied up to the FSA, CML, FOS & HM Treasury and are members of all progress consultation groups and other industry bodies. All profits are made very early in the process and everyone else has their commissions and the portfolio purchaser is left with a no-lose situation.

It is the borrower who has in my opinion been misled and find themselves in an environment that they never would have gone into given the choice and the right information up front.

emmaHarris_2

Around 10,000 mortgage borrowers in London face repossession orders each year. About 8,000 households in London are more than three months in arrears with their mortgage payments. About 10,000 outright possession orders are granted by county courts in London each year and at least 45,000 households face a possession order each year
What we do not know is how many of these are prime and/or sub prime etc. I will ask the questions of them. Great find Garry!!

emmaHarris_2

In London about 9,000 people each quarter are accepted as homeless by London local authorities, but this represents only about 45 per cent of homelessness applications. At the end of July 2004, London boroughs were housing almost 67,000 households in temporary accommodation.

The results of repossession and during the process borrowers are advised very early on to seek advice from their local councils and to inform them of the need to be re-housed. Considering the 'real' business module of sub prime lenders and their portfolio purchasers, their quickness to repossess without recourse, the denial of any Mortgage Advice or available Mortgage Advisors then you can start to see the real social effects that this can have on local tax payers and local government housing associations. Multiply this by 67 Counties in England & Wales and note....they know that their figures are not counted in the repossession statistics. Not all of the above will be attributed to these issues but I am sure forum members will hopefully start to see the point and the social economic ramifications.

emmaHarris_2

In Scotland they have just started to incorporate sub prime lenders repossession figures but again they have not gone far enough but it's a good start.

emmaHarris_2

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Original Message

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From: XXXXXXX
Sent: 30 April 2006 16:27
To: mayor@london.gov.uk
Subject: Freedom Of Information Enquiry - Homeless - Causes & effects - Sub Prime Lending

Dear Mayor,

We have read with great interest your document: The London Housing Advice Strategy as seen here: http://www.london.gov.uk/mayor/housing/docs/housingadvice.rtf

Our enquiry:

In the first instance we would welcome your confirmation of receipt of this email and to which department/person (including contact details) will be handling our enquiries below by return email.

Background
Our interest stems from current research being carried in the UK Mortgage Industry and specifically within the growing sub-prime sector and the possible causes and affects that this may have on the UK society as whole and I hope that your office will be able to provide more information and advice accordingly.

Your document above advises that “57% of the 3m separate households are ‘owner-occupiers equating to 1.7m possible mortgages”.

Your document continues to advise that:

“Around 10,000 mortgage borrowers in London face repossession orders each year. About 8,000 households in London are more than three months in arrears with their mortgage payments. About 10,000 outright possession orders are granted by county courts in London each year and at least 45,000 households face a possession order each year”.

The reported National figures advise and recognise that repossessions/evictions are at an all time high and has increased by 70% in 2005/2006. The Council of Mortgage Lenders report as of July 2005 that there were 10,000+ UK wide - http://www.cml.org.uk/cml/statistics .

The Daily Mail (for example of many of the Media) reported on Wednesday 05 February 2006 on page 5, as part of an article regarding Mr Ian Beech (who sadly took his own life because of being placed in a repossession situation) the same figures (albeit them being out of date).

The figures therefore become confusing, as does the reality of the current actual Mortgage repossessions and evictions rates being carried out today. As such, your own figures become disproportionate to the National figures even comparing to 2004, the date of your data.

1. Your comments are welcome in regard to the differencing and varying figures?
2. What basis have your figures been applied from and sources?
3. What are the London statistics for (a) 2004-5 & (b) 2005-2006 to date?

We are sure that we do not need to fully explain the real affects on individuals, families and communities experiencing home repossessions. We also realise that there are those who are probably more deserving of this action than others. We are sure also that the social-economic factors of repossessions/evictions are fully realised by County Councils throughout the UK and of course the real & sometimes high costs to the tax payer of picking up the pieces as a result of these actions.

We fully understand lenders that in both markets, different lenders will have their own and varying criteria’s set in regard to when and at what point/stage should repossession action be taken. It is commonly understood that repossessions/evictions should only be instigated as a very last resort, where an agreement between the lender and borrower cannot be reached.

However there is an escalating debate and/or argument in England & Wales and Scotland in that the Sub Prime Market Lenders are by way of their business modules & practices could now be having a severe and serious economic and social affect in the UK and regional communities. Indeed as this high growth market continues, be a high contributor to the costs of re-housing and other social services. It is only when these operations are further scrutinised in more detail an awareness of the real impact becomes apparent.

Repossession Statistics:

1. Do not include sub prime lenders
2. Do not include the increasing Special Purpose Vehicles/Subsidiary Company’s created specifically to managing/administrating mortgage portfolios (although these are legal entities that legitimately apply for repossessions and evictions in their own rights and parent companies are not identified)
3. Scotland is taking the lead and has started to incorporate some sub prime lenders repossessions but still does not go far enough
4. Sub Prime Lenders are aware of the current reporting status
5. Repossessions/evictions of borrowers in the Sub Prime market are much faster implemented (proceeding start at month 1 default) than Prime market

There are reasons other than the perceived understanding that this market will rush towards repossessions/evictions much quicker due to the nature of the borrower.

Our continued research & findings show that there are alternative reasons based predominantly on commercial interest. Once the business module & practice is analysed in more detail then it can be recognised fully the true extent of the balance between the borrowers interests, lenders interests, and social impact. Considering also the now mixed nature of the borrower from Prime (no adverse credit), Near prime (1 x CCJ in last 6 years under £2000) and extreme sub prime (multi CCJ’s etc).

Although this is not the time to provide our full findings supporting our belief to date that, the sub prime has and continues to have a discreet but substantial impact on society, our first priority is to establish the true nature of today’s repossession & eviction figures and evolve the debate further. It is however evident that the true status of home repossessions and evictions are not being reported

We have written and been in discussions with:

HM Treasury
FSA
CML
FOS
Her Majesties Court Services
Office of National Statistics
The Department of Constitutional Affairs
Consumer Groups

Please find below a list of questions that have been asked: We would be obliged if you can respond in details (without generalisation) to each also considering your reported statistics in your document referred above: (Please regard and adapt for LONDON)

In England & Wales:

Statistics for: Repossessions and Eviction Orders (including repossession
applications versus actual evictions figures)


1. Who is responsible for the collection and collating of mortgage repossession orders & evictions statistics?

2. Where can we find 'up to date' information for the above?

3. Is this information available from any 'body' or 'organisation' broken down by County or Region?

4. Is this information available from any 'body' or 'organisation' broken down by lender?

5. Where can consumers for example find information on a lenders repossession and eviction rates per annum?

6. Is there a responsibility of a 'body' or 'organisation' that carries out the collection and collating of these figures to report to The HM Treasury/Government?

7. How often are the statistics collated and published?

8. Where can these statistics be found and how up to date are they?

9. Are statistics collected and collated for all Prime Lenders (mortgage providers/lenders)?

10. Are statistics collected and collated for all Sub Prime lenders, originators of loans, (before securitisation and whole loan sales are implemented) and those who retain and administer the mortgage portfolio? Such as Kensington Mortgages for example?

11. Are statistics collected and collated or include all subsidiary companies, SPV's created to administer only mortgage portfolios purchased through securitisation or whole loan sales and FSA authorised as 'lenders' but do not extend further lenders or originate loans but have the ability to claim for repossessions and evictions in County Courts? For example only: Redstone Mortgages, (Mortgage Agency Number Six & Seven (MAS 6 & 7) (Britannia Subsidiary)?

12. Are the above (11) calculated in the figures of any parent company, as it seems they are not recorded as such on county court documentations?

13. As the creation of legal subsidiary company's/entities are increasing, to accommodate for the administration of mortgage portfolios only, and have the ability and company legal stature to instigate court repossessions and evictions (due to the increase in sub prime lending in recent times/periods) but are not originators of mortgage loans or provide any further advances so as not to change the contractual relationship, but again FSA authorised as 'lenders'… Are there any plans for a 'body' or
'organisation' to commence recording figures of this nature to be incorporated into current reported statistical figures, if they are already not being reported?

14. Are current reported repossession figures in the media accurate considering the above?

15. Does the HM Treasury have a responsibility to ensure that all statistics are repossessions and evictions are accurately recorded and published?

16. Where can year on year, quarter on quarter comparisons be found by: National, regional and/or county?

17. Could you provide contact information for each county/region so as to request statistical information by lender and dates?

18. Is this information freely available through any entity on enquiry being made or it is subject to any confidentiality?

19. If 'statistics by lenders' are not available are there any plans to introduce this going forward?

20. Does Her Majesty's Courts Service collate all statistics by county/region of this nature and report this information periodically to a 'body' or 'organisation'?

Statistics - Mortgage Lenders - Market Share

1. Are up to date statistics available to ascertain the market share of UK lenders of residential mortgages?

2. Is there any information available to provide information of the size and market share of sub prime lenders, SPV portfolio sizes?

3. Where can these statistics and information be found?

4. How often are these updated?

We look forward to hearing from you and we would like to thank you for your valuable time and serious consideration to supporting our enquiries. We in turn will only be too happy to share our research and findings with you in due course. Our aims are to evolve the process and debate and to ensure that a fair and balanced relationship is secured.

Kind Regards,

Address & Contact Details supplied

emmaHarris_2

See what you did now Garry LOL:)