After the financial crisis of 2008, a new breed of mortgage providers emerged: marketplace lenders. White-labeled or branded, marketplace lending platforms have taken the owner-occupied mortgage market in the Netherlands by storm. From a market share of ... in 2010 to around ... in 2019, can this shift be attributed to the platforms only, or is there more going on?
We believe one of the drivers behind the shift is the tightened regulation around banks. Capital requirements and stricter lending policies have effectively driven consumers away. But technology has also allowed platforms to promote friendlier application processes. Online applications have been a game changer in reaching homeowners. But also the capital markets played a role. Following trying times in the structured finance markets during the 2008 financial crisis, RMBS markets proved a valuable tool for originators and investors in gaining access to this substantial market for residential mortgages.
Now, in April 2020, Covid-19 poses a new challenge to homeowners and their financiers. While we expect that the experience of the past decade contributes to more stability in the sector than we've seen during the financial crisis, how the Corona epidemic impacts the mortgage lenders, bank or non-bank, has yet to become clear.