Post by CrowdProperty Representative on Dec 5, 2018 12:01:29 GMT
Hi all
We're proud to announce that CrowdProperty (www.crowdproperty.com) has become the latest peer-to-peer loan originator to disclose their lending performance using Brismo’s methodology (www.brismo.com) and in doing so we have become the first real estate development / bridging lender to open up for Brismo's leading independent performance standard, Brismo Verified (formerly Altfi Data Verified).
Brismo recently added a series of property-specific metrics to supplement their existing analysis of consumer, SME, and receivables loans. This enables the performance of real estate loans to be compared alongside other asset types. As a result, the performance of loans originated by CrowdProperty can now be compared alongside loans from other leading originators. This will enable investors to make more informed investment decisions based on standardised performance metrics across platforms. Brismo’s thorough analysis of CrowdProperty’s loan book and loan cashflows reveals significant outperformance vs the UK Index of peer-to-peer lenders and verification of the 100% capital and interest payback track record. Please see the Brismo Verified returns chart on our updated statistics page at www.crowdproperty.com/statistics.
Brismo’s methodology is explained in detail on their website, but in summary, Brismo analyse each and every loan, tracking loan cashflows against initial capital, expected interest and the loan term originally contracted. Loans which are later than the FCA proposed and P2PFA definition of technical default (180 days for property development) or otherwise marked as defaulted for any other reason by CrowdProperty, have industry standard capital write down assumptions applied to them as an impairment, thereby suppressing the returns line. If such loans are subsequently recovered to a level above which they have been impaired, the returns line will lift at the time of recovery to reflect this. The early-to-mid 2017 dip in the CrowdProperty returns line above shows this effect from the 3 loans in our history that have passed 180 days late (from our 2015 and 2016 loan cohorts). The CrowdProperty returns line then lifts, driven by 100% recovery of the capital and interest for these loans, maintaining our 100% capital and interest payback track record. CrowdProperty has now paid back over £11,000,000 to lenders and Brismo's independently verified, comparable methodology shows the CrowdProperty net return line is significantly higher than Brismo's UK Index.
Commenting on the announcement Mike Bristow, CEO and Co-Founder of CrowdProperty said:
“At CrowdProperty we support the FCA’s recent call for improved and consistent disclosure in the peer-to-peer lending sector. Independently verified performance metrics bring efficiency to the investment process, support our segment-leading disclosure standards, validate our 100% track record and strong returns performance and underline our commitment to be held accountable for the performance of every loan that we originate both historically and going forward.”
Rupert Taylor, founder and CEO of Brismo, explained:
“The FCA’s recent consultation paper underlined how important it is that retail investors should be able to compare the risks and returns of lending between platforms. Indeed this requirement is just as fundamental to retail investors as it is to the institutional market. Standardised performance measurement will allow CrowdProperty to advertise the excellent performance of the loans they have originated in a format that enables investors to make informed decisions.”
If you have any questions, please do get in touch - we always welcome the feedback from this forum.
Kind regards,
Mike Bristow
CEO & Co-Founder
We're proud to announce that CrowdProperty (www.crowdproperty.com) has become the latest peer-to-peer loan originator to disclose their lending performance using Brismo’s methodology (www.brismo.com) and in doing so we have become the first real estate development / bridging lender to open up for Brismo's leading independent performance standard, Brismo Verified (formerly Altfi Data Verified).
Brismo recently added a series of property-specific metrics to supplement their existing analysis of consumer, SME, and receivables loans. This enables the performance of real estate loans to be compared alongside other asset types. As a result, the performance of loans originated by CrowdProperty can now be compared alongside loans from other leading originators. This will enable investors to make more informed investment decisions based on standardised performance metrics across platforms. Brismo’s thorough analysis of CrowdProperty’s loan book and loan cashflows reveals significant outperformance vs the UK Index of peer-to-peer lenders and verification of the 100% capital and interest payback track record. Please see the Brismo Verified returns chart on our updated statistics page at www.crowdproperty.com/statistics.
Brismo’s methodology is explained in detail on their website, but in summary, Brismo analyse each and every loan, tracking loan cashflows against initial capital, expected interest and the loan term originally contracted. Loans which are later than the FCA proposed and P2PFA definition of technical default (180 days for property development) or otherwise marked as defaulted for any other reason by CrowdProperty, have industry standard capital write down assumptions applied to them as an impairment, thereby suppressing the returns line. If such loans are subsequently recovered to a level above which they have been impaired, the returns line will lift at the time of recovery to reflect this. The early-to-mid 2017 dip in the CrowdProperty returns line above shows this effect from the 3 loans in our history that have passed 180 days late (from our 2015 and 2016 loan cohorts). The CrowdProperty returns line then lifts, driven by 100% recovery of the capital and interest for these loans, maintaining our 100% capital and interest payback track record. CrowdProperty has now paid back over £11,000,000 to lenders and Brismo's independently verified, comparable methodology shows the CrowdProperty net return line is significantly higher than Brismo's UK Index.
Commenting on the announcement Mike Bristow, CEO and Co-Founder of CrowdProperty said:
“At CrowdProperty we support the FCA’s recent call for improved and consistent disclosure in the peer-to-peer lending sector. Independently verified performance metrics bring efficiency to the investment process, support our segment-leading disclosure standards, validate our 100% track record and strong returns performance and underline our commitment to be held accountable for the performance of every loan that we originate both historically and going forward.”
Rupert Taylor, founder and CEO of Brismo, explained:
“The FCA’s recent consultation paper underlined how important it is that retail investors should be able to compare the risks and returns of lending between platforms. Indeed this requirement is just as fundamental to retail investors as it is to the institutional market. Standardised performance measurement will allow CrowdProperty to advertise the excellent performance of the loans they have originated in a format that enables investors to make informed decisions.”
If you have any questions, please do get in touch - we always welcome the feedback from this forum.
Kind regards,
Mike Bristow
CEO & Co-Founder