Mortgage lender Edeus rebrands as due diligence firm

UK subprime lender Edeus shelves its origination business and starts offering investors an asset quality assessment service enabling investors to quantify risk in mortgage-backed asset pools

Mortgage lender Edeus, which was set up in 2006 by a group of 47 executives from HBOS to originate subprime mortgages, has decided to reinvent itself, instead offering technical expertise to the beleaguered market.

Alan Cleary, managing director of Edeus, says traditional due diligence procedures, which use information available at the point of origination, cover only 15% of the mortgage pool. Edeus's asset quality assessment service, which checks borrowers' credit scores, their ability to