New lender about to enter the mortgage market: Nua Money

[Sunny]

Apparently this crowd are close to launching as well. Have raised significant backing.

Nua Money

nuamoney.com

 

[Brendan Burgess]

Here is some stuff about them.

Wexford tycoons invest in Irish mortgages start-up

Brothers sold stake in Slaney Foods for a reported €250 million in 2016

www.irishtimes.com

Nua Money was set up in late 2021 by executive directors Fergal O’Leary (best known in Dublin financial circles for co-founding bond trading firm Glas Securities to trade Irish government bonds at a time of frenetic trading of the State’s debt during the financial crisis), Mark Watson (a former colleague from his time at Citigroup) and three other co-founders.

Would we recommend a non-bank lender after the behaviour of ICS and Finance Ireland?

I doubt that the technology would make up for the risk.

Brendan

 

[MrEarl]

Would we recommend a non-bank lender after the behaviour of ICS and Finance Ireland?

Brendan

Isn't it a little early, to be adopting that position, Mr. Burgess?

Would you not think that more competition in the marketplace, is a good thing?

The Central Bank would like us to believe that the are big on how lenders conduct themselves, and how customers are treated by their lenders, so maybe the Central Bank should be the focus - with people applying pressure, to see the Central Bank (and Government) do more to regulate all lenders, particularly the non-Banks?

From a glance at Nua's website, it looks like they are still waiting for Central Bank approval, btw.

 

[DublinHead54]

Reading the website it is not clear how this technology will speed up the process and make it a better value proposition for consumers.


Arguably consumers are driven to a mortgage provider by the rate on offer as the main variable. I have not seen mortgage providers actively advertising the decision time to get a mortgage. From the website it looks like the credit decision process is still manual which is probably the bit that can take the longest. If I was to build a platform I'd focus on automating the underwriting process.



'Proprietary technology and customer experiences designed to make applying for a mortgage easier. Whether its end-to-end online applications, digital signatures or Open Banking, we work to make your home purchase simpler.'

'Get the speed of technology with the support of experts. Have a direct access to experienced case workers and underwriters, and ensure your mortgage loan process is hassle-free and built around your needs.'

 

[Brendan Burgess]

Isn't it a little early, to be adopting that position, Mr. Burgess?

First of all, it was a question rather than a statement. I would be interested to hear from others whether, as a general rule, people are better taking out loans with mainstream banks rather than funds.

I recommended Finance Ireland to people and, with the benefit of hindsight, I wish I hadn't. When people come off fixed rates, they will be facing very high rates with F.I. and ICS.

Would you not think that more competition in the marketplace, is a good thing?

Are you asking me to argue against motherhood and apple pie?

Competition in general is a good thing. But if ptsb disappeared from the market tomorrow, no one would lose out. They have a long history of predatory lending and I doubt it will change any time soon. But people get attracted by their bells and whistles. So I would be pleased if they went bust and we had less competition.

Of course, I was delighted to see Avant coming into the market and actually bringing down rates. And in its day, the arrival of BoSI shook up the market.

Brendan

 

[Sunny]

I agree with Brendan about non bank lenders. It's extremely difficult for these entities once there is any shock to interest rates and funding. They survive on securitisation because they have no normal sources of funding like banks.

I don't know anything about what they are going to be offering or what their USP will be. They are talking about disrupting the mortgage lending process which is interesting but unless they can compete on price, I am not sure why people would go to them.

Having said that, I do have some knowledge of the individuals involved. They are not cowboys.

 

[NoRegretsCoyote]

If I was to build a platform I'd focus on automating the underwriting process.

I tend to agree that this part could be improved as there are lots of scanned pdfs flying around and people a the lender presumably doing manual data entry. At the same time underwriting should be a time consuming, laborious process if it is being done right.

I'll be in the market for a mortgage next year and the only thing I will focus on is price. I've already once been through BoI's slow and demanding underwriting process and I would do it again if they had the best rates.

 

[DublinHead54]

I tend to agree that this part could be improved as there are lots of scanned pdfs flying around and people a the lender presumably doing manual data entry. At the same time underwriting should be a time consuming, laborious process if it is being done right.

I'll be in the market for a mortgage next year and the only thing I will focus on is price. I've already once been through BoI's slow and demanding underwriting process and I would do it again if they had the best rates.

I don't think underwriting for a Mortgage should be a time consuming and laborious process. I think a computer can provide a yes/no decision based on an agreed set of inputs. It should then just be a manual decision on whether lending to the applicant fits within the lenders risk appetite.

 

[NoRegretsCoyote]

I think a computer can provide a yes/no decision based on an agreed set of inputs.

For sure there are models that lenders use but it’s not at all simple when you try to factor in things like bonus income, self-employed income, divorced people, maternity leave, etc.

Fraud is a big risk and you need humans here.

I think you can automate the data and analytics part but the lending offers will always need human oversight.