Ward says this is a good opportunity but he is concerned about firms with less experience coming into the market to make quick profits.
He says: “There is a concern that they may not evaluate the books of business properly and then fail to manage them successfully.”
Ward says Home Funding is interested in buying these assets and already has some ideas on how to move these loans back into the market.
He says: “This is what we are built for. We are a special servicer. We are continuing to manage a billion of assets for Basinghall and we think that we are ideally placed to buy these types of assets.”
Ward says books of business from US investment banks would be among the main targets for distressed sales.
He says: “This would involve identifying books of business to acquire, managing them and pricing them. There are very few people who were around in the 1990s but we were, so we have the experience.”