Peer to peer property lender CrowdProperty is now disclosing their performance metrics using Brismo’s (formerly known as AltFi) standardized reporting methodology. CrowdPropert states that it is the first property development platform to incorporate the Brismo process which is described as an independent standard.
Commenting on the announcement, Mike Bristow, CEO and co-Founder of CrowdProperty, said they support the Financial Conduct Authority’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,” said Bristow.
Brismo’s analysis includes a historic track record that is said to be in a format that is “free from distortions relating to inconsistent origination growth rates or default profiles.”
Data points 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
Specifically for real estate metrics, Brismo is tracking:
- Debt service coverage ratio
- House price to income ratio
- Loan to income ratio
- Loan to value ratio
- Loan to gross development value ratio
Brismo states that it recently added a series of property specific metrics to supplement their existing analysis of consumer, SME, and receivables loans.
“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,” explained Rupert Taylor, founder and CEO of Brismo.
Taylor called the requirement fundamental to both retail and institutional investors. An apples to apples comparison with validated data should help investors make better decisions as to how they allocate their capital.