Pepper reports loss
Non-conforming lender Pepper reported a loss of $4.2 million for the 18 months to December 2007, a considerable turnaround from a profit of $7 million in the 12 months to June 2006. The firm is one of a handful of funders specialising in non-conforming lending. It had a portfolio of loans under management of about $1.5 billion at December 2007, of which only half is consolidated within the financial statements. Of this, $543 million was funded through a warehouse line and the balance was funded through three securitisation trusts. Pepper reported revenue of $120 million from mortgages over the extended financial year. This included $65 million in interest revenue, $19 million in fee revenue, and $23 million profit from the sale of mortgage portfolios.
Source: The Sheet