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Rooftop plugs £200k gap

Rooftop has again been forced to plug a six-figure hole in one of its securitised pools of loans.

The sub-prime lender has pumped £216,000 into its second securitisation, Farringdon 2. In November, rating agency Fitch put a negative rating on three tranches of Farringdon 2. Last year, Rooftop had to use its reserve funds twice to make up for losses in its Farringdon 1 portfolio.

Rooftop special servicing division director Jonathan Naylor says the losses on Farringdon 2 came from only 10 repossessed properties, with three of the properties comprising 80 per cent of the loss.

Farringdon 1 and Rooftop’s latest securitisation, Mansard 2006-1, fared better in figures released last week. The firm will securitise Mansard 2007-1 during the first quarter.

Naylor says: “Farringdon 1 has been through the negative curve and it is improving. It looked like Farringdon 2 would perform like Farringdon 1 so those losses were predictable.”

see Raising the Rooftop >>

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