CrowdProperty becomes the first development lender to provide standardised performance metrics using Brismo

Published on December 5, 2018

 

CrowdProperty has become the latest peer-to-peer loan originator to disclose their lending performance using Brismo’s methodology. In doing so they have become the first real estate development lender to adhere to an independent performance standard.

 

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, both institutional and retail, to make informed investment decisions based on standardised performance metrics.

 

Commenting on the announcement Mike Bristow, CEO and Co-Founder of CrowdProperty said:

“At CrowdProperty we support the FCA’s recent call for 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 that they originate in a format that enables investors to make informed decisions.”

 

Lending Performance Analytics

 

Brismo’s analysis includes a complete historic track record in a format that is free from distortions relating to inconsistent origination growth rates or default profiles.

 

CrowdProperty – Annualised Net Return (Accruals methodology)

 

CrowdProperty – Annualised net return, yield and loss rates

 

Functions available include:
  • Gross origination, net lending, change in outstanding principal
  • Outbound lending rates and loan term
  • Late payments including transition matrices, defaults, recoveries, net losses, and recovery performance
  • Historic PDs and LGDs
  • Net return, loss coverage and risk adjusted return
  • Cohort analysis including return projections

 

Real estate specific metrics include:

  • Debt service coverage ratio
  • House price to income ratio
  • Loan to income ratio
  • Loan to value ratio
  • Loan to gross development value ratio All analysis can be segmented by originator, risk band, asset type etc.

 

About CrowdProperty:

Our vision at CrowdProperty is to build a more rewarding financial era whilst making a lasting and significant contribution to society.

 

Traditional lending is in crisis: SME property professionals are struggling to access the finance they need, and investors are receiving inferior rates of interest due to high overhead banking costs. CrowdProperty’s founders built our business to tackle these fundamental issues. Enabled by our technology and expertise, we provide quick and easy finance to property professionals whilst giving investors inflation-beating interest, all whilst meeting the under-supplied and rising demand for quality residential housing in the process. Our founders are leaders in the property industry. Leveraging decades of hands-on experience, we ensure we select and oversee only the very best projects for investment. We use our advanced technology to efficiently pair investors directly with rigorously due-diligenced projects and borrowers, secured by the first legal charge, enabling many to share in the success of good projects, keeping true to the original fair ethos of peer-to-peer lending.

 

About Brismo:

Brismo (previously known as AltFi Data) is the market leading provider of standardised loan performance data, delivering like for like comparability, improved market efficiency, and the only performance benchmarks in the industry.

 

We work with market leading originators of a wide range of loan assets – from SME and consumer through to real estate and receivables – across all major geographies. We cover over 65% of UK and European marketplace lending and over 50% of US marketplace lending.

 

We bring efficiency to the market in loans by enabling loan originators to create credible performance metrics and investors to deploy capital more productively and cost effectively.

CrowdProperty
Mike Bristow
CEO & Co-Founder
+44 797 630 3921
Brismo
Rupert Taylor
CEO & Founder
+44 207 153 1218
+44 772 044 0329