Oakwood achieve 100 per cent of payments due on distressed debt mortgage books
Oakwood Global Finance LLP says that over the past 12 months it has routinely achieved the collection of over 100 per cent of payments due on non-performing loan portfolios.
The mortgage servicer is consistently helping customers to meet their entire scheduled payment each month, while also assisting borrowers in contributing towards the reduction of their arrears balance and thereby enabling borrowers to repair their credit rating.
These portfolios were purchased by Engage Credit Limited, Oakwood’s affiliated regulated servicing platform, from major banks seeking to remove non-performing loans from their balance sheets.
Typically, over 85% of cases in the portfolios were in arrears when they were acquired. During the past year the portfolio performance has been transformed owing to Oakwood’s case-ownership credit management strategy.
Richard Klemmer, partner at Oakwood, said: “Our success in delivering consistent results is due to our special servicing capability. In difficult times you need experienced servicers capable of assessing individual circumstances who are also able to handle sensitive situations.
“When the housing market was booming mortgage servicing resembled an automated assembly line. In times like these, customers require account handling at a personal level and distressed debt requires a more considered approach.
“Even on loans that appear irretrievable, it is possible to balance the needs of both the customer and the lender if you can offer creative solutions to customers’ problems. The approach needs to be different in every case and such decision-making only comes with professional experience.”
If a customer can’t repay their mortgage now or in the future and needs to exit from the commitment, Oakwood’s asset management team looks for the best possible return for the lender and reduces the debts of the customer, even in extreme circumstances.
On occasions this might even mean Oakwood investing its own money in a refurbishment project at the property in order to deliver a better sale return.