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Edeus transforms into manager of mortgage assets

Edeus chief executive Michael Bolton has revealed it has reengineered itself into an “asset management” service business for the UK mortgage market.

Bolton says it has not made a final decision on whether it will temporarily withdraw from the mortgage origination market but stresses that it is currently still maintaining its presence.

He also confirmed that Edeus will moving into deposit taking and will be making an announcement on this in due course.

Speaking to Money Marketing, Bolton says Edeus has been reengineering itself over the last four months into an “asset management” servicing business after admitting that this market does not allow for any form of non-balance sheet lenders.

It will be launching this service at the Building Societies Association conference next month. Bolton says Edeus has already had some success in the market and has contracts in place.

He says Edeus will start with offering services to the UK mortgage market which will then expand into areas such as special servicing.

Bolton admits that arrears management will be one of the areas Edeus will look at. “It’s a service that will become increasingly in demand as we turn into the credit crunch. Dare I say we are moving the business towards the growth area of the UK mortgage and housing market.

“It is the growth area which is not a great thing to be talking about but quite frankly I think lenders will be increasingly identifying that they have a worsening arrears situation.”

Bolton adds: “This market does not allow for any form of non-balance sheet lenders. You have to have a balance sheet in order to survive in this market.”

“So a business like ours we clearly have to look at the value that we derive currently from originating mortgages which currently isn’”t great. Luckily for us there are alternatives.”

For more information on Edeus’ plans for the future see next week’s Money Marketing for a full interview with Bolton.

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