In an exclusive interview with Mortgage Strategy’s sister title Lending Strategy, he says that while he didn’t predict the credit crunch he did foresee that there would be a big supply side adjustment.
He adds that risk layering led to the downturn affecting the mortgage industry.
Knight says: “What we were doing, forced by competition, was to lend on high LTVs to clients with covenant issues. That’s risk layering and it was a mistake.”
He says Checkmate has been working with credit ratings firm Experian to write credit scores fit for its 2009 launch.