All of The House Crowd’s active development loans have fallen into default, the collapsed peer-to-peer lender’s administrator has said.
The platform announced on Friday 26 February that it had gone into administration “due to financial issues” facing the company.
Frank Ofonagoro, Jeremy Woodside and Frank Wessely at business advisory firm Quantuma have been named joint administrators with consent from the Financial Conduct Authority.
Lenders are still awaiting full details of how exposed their loans are and how much, if any, of their funds they will get back.
One update showed investors in The House Crowd’s development loans could be facing losses.
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“In relation to the development loanbook administered by The House Crowd we confirm that all of the loans were already in default at the date of our appointment and remain so,” the update said.
“Since our appointment we have been appraising each loan and its associated collateral in order to evaluate recovery prospects for investors.
“This process is ongoing and we will update investors on progress regularly through The House Crowd’s website.”
The administrator also revealed that all investors who had made deposits shortly before the platform’s closure that hadn’t been lent will be returned.
“Where this is the case, the administrators will contact the relevant affected investors,” the update said.
“We have established that The House Crowd was holding a relatively small amount of funds in this regard at the date of the administrators’ appointment.”