As the rest of the world suffered at the hands of the market turmoil in the US, it looked like the secured loan industry had escaped relatively scratch free, up until Thursday night that was.
There was shock among brokers on Thursday evening as the news broke that GE Money Home Lending was increasing rates across both brands and giving brokers very little notice to place cases.
By now I think the majority of the broker community has realised that when lenders to things like this, although it might appear they are working against you, they genuinely have very little choice.
GEMHL it seems was forced to act in the face of a declining economy and the increased rate of borrowing, but the question on everyone’s lips was, does this mean they will withdraw?
The rumours already started to do the rounds, with both packagers and those in the secured market anticipating that this was the beginning of the end for GE.
But fear not – at least not for now anyway, GE has reassured the market that it has no intention of going anywhere, let’s hope for everyone’s sake that this is the case.
GEMHL has in many ways been the backbone of the specialist market and to see it go would leave many a packager and broker struggling to survive.
It is not often that lenders can be 100% trusted, so let’s hope that when GE says it will stay in the market it really does mean it.