House Crowd administrator reveals development loans are in default

All of The House Crowd’s active development loans have defaulted, the administrator of the collapsed peer-to-peer lender said.

The platform announced on Friday February 26 to have entered the administration “Because of financial problems” the company is facing.

Frank Ofonagoro, Jeremy Woodside and Frank Wessely of the corporate consultancy firm Quantuma have been appointed joint directors with the approval of the Financial Conduct Authority.

Lenders are still waiting for full details of their loan exposure and the amount, if any, of their funds they will recover.

An update showed that investors in The House Crowd development loans could suffer losses.

Read more: House Crowd director leaves

“With respect to the development loan portfolio administered by The House Crowd, we confirm that all loans were already in default on the date of our appointment and remain so,” the update reads.

“Since our appointment, we have evaluated each loan and its associated guarantees in order to assess the recovery prospects for investors.

“This process is ongoing and we will regularly update investors on the progress of The House Crowd website.”

The administrator also revealed that all investors who made deposits shortly before the platform closed and were not loaned out will be returned.

“When this is the case, the directors will contact the relevant investors concerned,” the update reads.

“We have determined that The House Crowd held a relatively small amount of funds in this regard at the date of the appointment of the directors.”

Read more: FCA Warns The House Crowd Investors Against Using Claim Companies

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