Whilst the background of the two businesses may appear quite different, they share many common values.
Both organisations have a great understanding of risk adjusted returns, the importance of brand reputation over the long term, and the need to make sound commercial decisions based on the fundamentals of asset quality, margin, and performance.
Having been active in this market since the early 1990s, Stroud & Swindon is a long-standing purchaser of UK mortgage assets and is highly experienced in selecting originators that are able to provide mortgage asset that is both valuable and sustainable. edeus is delighted that the Society has become the fifth trading partner this year in its whole loan trading programme.
Michael Bolton, edeus CEO, said: “This deal with Stroud & Swindon shows there is still appetite for good quality mortgage assets in the secondary market. For those originators who take a prudent approach and produce good quality assets, the outlook for 2008 will be a marked improvement on the experience of the second half of 2007.”
David Hill, chief executive of Stroud & Swindon Building Society, however clarified: “Whilst future trades are envisaged, there is no contractual obligation on either party in this respect. Inaccurate reports that as much as £500 million worth of mortgages is to be purchased is not the case.
“We have been conducting whole loan trades for almost 20 years now and this most recent deal is simply a continuation of a policy which has provided great benefit to our members over the years. As with all previous trades, the FSA have been kept fully advised.”
