Both entrepreneurs with unrivalled experience of launching and growing mortgage lending businesses, Knight was previously chairman of GMAC-RFC while Finegold founded Kensington Mortgages.
The new venture, a privately funded vehicle for creating and owning mortgage lenders, will see Knight will take up the position of executive chairman, and Finegold hold an advisory role.
Under the Checkmate stable, Knight and Finegold will set up several new lenders, each focused on a particular distribution channel. The first two will launch in Q4 2008, where growth will be organic, but acquisitions will be considered.
The founders believe that recent market events have helped rather than hindered this opportunity. By Q4 2008, rates are expected to have peaked, the capital markets are expected to have settled down, more profitable margins restored and some over-capacity taken out.
“However bad the storm, the sun always shines again eventually,” said Knight. “This will be my third and final business launch, and I intend it to be the best. Checkmate will rip up the rule-book on product design, distribution management and point of sale technology. I intend to recruit a strong management team and equity will be available to the right people.”
Speaking of his business relationship with Finegold, Knight added: “We have been close personal friends for many years. We trust and understand each other. That will hopefully make us a formidable combination.”
