By doing so, the P2P loan originator will adhere to an independent performance standard.
Brismo – formerly known as AltFi Data – recently added a series of property-specific metrics to supplement its existing analysis of consumer, SME and receivables loans.
As a result, the performance of CrowdProperty’s loan originations can now be compared alongside loans from other leading originators.
Institutional and retail investors will now be able to make informed investment decisions based on these standardised performance metrics.
- CrowdProperty passes £25m funding milestone
- CrowdProperty launches new website
- Industry reacts to slowing annual house price growth
Features available through the service 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
Mike Bristow, CEO and co-founder of CrowdProperty (pictured above), said: “At CrowdProperty, we support the FCA’s recent call for consistent disclosure in the P2P 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, CEO and founder of Brismo, added: “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.”