The nature of the standby agreement is “cold” at the outset. But should certain triggers occur, the agreement is able to change to “warm”, thus placing Crown in a higher state of readiness to be invoked.
This is the first time an agreement of this nature has been signed as standby servicing continues to increase in popularity and necessity.
Nick Parkhouse, senior director, financial institutions structured finance at RBS, said: “We were impressed that Crown Mortgage Management thought about the need for a standby agreement from both the lenders and the funders perspective and are happy to partner Crown Mortgage Management on this innovative transaction.
“We have the comfort of being able to deliver for our client an efficient cost structure while at the same time knowing that if our risk profile increases, we can move the standby closer to readiness.”
Andrew Doyle, CEO of Crown Mortgage Management, added: “We are delighted to be working with RBS and Norton Finance on this transaction and look forward to building on our new relationship.
“This contract evidences Crown’s innovative way of approaching agreements and demonstrates our desire to innovate services according to the changing needs of the mortgage market.
“We constantly strive to provide value for money for our clients and this type of “dynamic” standby is as a result of our efforts”.