hit counter

Richard Klemmer, partner at Oakwood Global Finance

Line Spacing+- AFont Size+- Print Forward to a friend In The Spotlight
Richard Klemmer, partner at Oakwood Global Finance

In the spotlight

myintroducer caught up with Richard Klemmer, a partner at Oakwood Finance.

myi: What is Oakwood’s particular area of expertise?

We specialise in credit and asset management. We have developed from a very solid base of a high quality, IT driven business process outsourcing service, and layered in many years of expertise in managing credit positions and maximising portfolio performance and asset recovery, to evolve into the business that we are today.

We believe that our offering to clients is uniquely “cradle-to-grave”. We can handle every aspect of portfolio management including holding legal title, deploying a case management operating model and leveraging off the most sophisticated – and proprietary – servicing system in the UK.

myi: How has your business changed in the last five years?

Five years ago we were originating assets ourselves, and the subsequent servicing and asset management was in support of our own in-house lending activities. Today we are a true specialist third party service provider, offering our expertise and infrastructure to a wide range of investor and bank clients.

myi: What do you see as the big areas of opportunity for the future?

Our main opportunities for growth will come both from expanding into other asset classes (such as our recent moves into second charge loans and commercial mortgages), and new jurisdictions. These are most likely to be countries where the Eurozone crisis has seen mortgage books being traded and investors require a compliant service as well as a return on loans that are often non-performing.

myi: What single piece of advice would you share with lenders today?

I would actually venture two! Firstly, control your credit risk. Don’t delegate key components of your firm’s credit risk to the distribution channel. Secondly, make sure your funding model is robust and liquid: the lenders that suffered the worst during the credit crunch were those with an over reliance on wholesale funding lines that evaporated overnight.

myi: What is your biggest point of pride and biggest regret in business? 

We are very proud of the fact that we managed to steer our independent financial services business through the worst financial sector crisis since the Great Depression and have emerged as one of the fastest growing servicers in the UK.

As for regrets: only that I didn’t invent Facebook!
 
myi: Do you have any predictions for the next 12 months?

I think 2013 in broad terms, for our industry, will be similar to this year; we expect to see continuing low interest rates, which means that mortgage affordability will continue at current levels and therefore repossession activity will remain low, because interest rate shock will be deferred.

There will be plenty of activity (and costs) as a result of the Mortgage Market Review, but new lending is likely to remain suppressed, thanks to a toxic combination of low overall demand, restrictive lending criteria, lack of substantial deposits, uncertainty on house price values and latent negative equity for many second time buyers.

In our specific niche of portfolio trading, we expect demand to again exceed supply, so we anticipate modest activity in that space.

myi: What would you be doing if you weren’t in the financial services industry?

Had talent not been so sadly lacking then ideally I would be swinging  golf clubs for a living; however, like many of us, I had to face up to reality and settle for a life in FS!

No Comments

This Article Has No Comments Yet

But You can be first to leave a comment

Latest from Property Reporter

Q4 sees influx of prime properties entering the market for sale

Q4 sees the lowest recorded void period of 2014

Top tips for BTL investors in the auction room

17% of remortgagers pocketed 10K in December


Latest from Commercial Reporter

Challenger bank to launch bridging loans

Fincorp puts pricing power in borrowers' hands with new deal

Regentsmead joins forces with National Federation of Builders

Staying awake at night?


Latest Comments

The reasons for the subsequent drop are clear in light of changes to Funding for Lending. In January, the scheme ceased to apply to home purchase mortgages. The changes were implemented because house purchase...

view article
george morley
george morley 26 Jan 2015

The article says "In the ten years since the first Pensions Commission, significant policy changes have been made" but it begs the question why has the frozen pension issue not been resolved. If this

view article

AMI is delighted that Treasury has listened to the voice of the broker and made changes to take brokers out of the scope of the consumer credit regime for unregulated buy-to-let loans. In addition the

view article

The decision of the ECB to commence quantitative easing starting with €60bn per month from March 2015 until September 2016 represents an important step in helping to put the eurozone economy on a firmer...

view article

In The Spotlight

In the Spotlight with Steve Stone, Commercial Director at Vertex Financial Services

We spoke to Steve Stone, Commercial Director at Vertex Financial Services, about challenges facing the industry post-MMR, and the hot topics in the mortgage market at the moment. Read more

Features

A sustainable approach to equity release

Equity release lending totalled £365.7m in Q4 2014, making it a record-breaking year for the industry, with total lending reaching almost £1.4bn. Read more

Latest Tweets

Subscribe Our Mailing List