bugs4me
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Post by bugs4me on Sept 21, 2014 9:46:37 GMT
I really don't think they should consider this. The long term future of SS depends on them having money available on short notice whenever a borrower comes along, so they need to be giving their investors as much encouragement as they can. Without significant investor support, they'd likely find themselves in the position that AC seem to be in now, with every loan requiring massive underwriting. I don't know what AC have to pay to their underwriters, but I expect that the huge amount of underwriting they need is costing them a packet. In the case you quote of underwriters and AC , IMO it is not AC that is hurting it is the lenders who are being offered significantly lower rates to compensate. This could develop into a form of the proverbial Catch 22 with ever decreasing returns and a spiral dive to disaster. Similarly for SS if boat loans go down to 9%. It will be interesting to see where AC go from here as whilst they may be able to call on underwriters there is not an unlimited amount of cash available from them. Just look at the AM - it's awash with (I suppose) underwriters offloading. Also a bridging loan being offered at 12% would have filled within minutes a few months ago - is it the potential drawdown delays? Now we've got the GoCardless facility removed so either you need to hold spare idle funds in your account to pick up the odd one here and there on the AM or look elsewhere. Think they are already in a Catch 22 situation. I expect SS are watching this with interest.
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