Edeus stops lending and cuts 50 jobs

Edeus today announced that it has stopped lending - resulting in the loss of some 50 jobs.

Edeus has today announced that it is proposing to re-engineer its operations to focus on the expanding market for asset quality assessment and special servicing.

As a result its award-winning technology will be deployed to help mortgage asset purchasers and mortgage asset holders to assess the level of risk in their mortgage books. Edeus has already been successfully trading in this new and emerging market for the last two months.

Edeus has also confirmed that it intends to temporarily withdraw from originating new mortgage loans until such a time as it becomes commercially attractive to re-enter. Edeus will continue to actively trade and service its back book of mortgage assets.

All pipeline cases will be honoured and the exact date for receipt of new applications will be communicated shortly.

In light of the above edeus is proposing to reduce the size of its workforce by approximately 50%. This will affect around 50 people concentrated mainly in the sales and marketing departments.

All people affected have entered a 30-day consultation period and the senior management of edeus is committed to supporting its people through this difficult period.

Michael Bolton, chief executive of edeus, says: “This is an unprecedented time for our industry and at present it is not commercially viable for edeus to originate new loans.

“However, the growing market for due diligence services and asset quality assessment is an area that edeus’ award-winning technology and people can add considerable value.”

Alan Cleary, managing director of edeus, adds: “It is very sad that some very loyal colleagues may be leaving edeus but current market conditions dictate that we take decisive action to protect the long term future of the business.”