"Stress in the Residential Market" - Major Lender Exits

By John Honovich, Published Nov 06, 2019, 08:54am EST

The residential security / 'alarm' market is getting worse, at least for traditional players. Now, one of the biggest lenders in the industry has quietly exited.

IPVM Image

In this note, we examine the exit, what is going wrong in the market and how it might get worse.

Exit ** ******* ******* ****

******* ******* **** *** exited *** ******** ******* business. *** ******* (********* referred ** ***************, *********** * ********** ******* *******) *** one ** *** ******* lenders ** *** **** decade ** ******** ********* ranging ****$*** ******* ********* ** ASG **** ** ******$** ******* **** ** Becklar ** *** ******* **** ***** *** to$** ******* ******* ** Mountain ***** ** ******* 2019.

IPVM Image

***** ******** ******* ***** was *** ****** ********** ********* ********* ** industry ****** ********* ***** ********* ******* ** SNG**** ****.

"Stress ** *** *********** ******"

**********, ** ******* ***********, Pacific *******'************* *** * ********** ****** ** *** residential ******, ***** *****:

IPVM Image

**** *********** ************** *************** ****** * ******* dollars ** **** *** eliminated/converted ** **** ** new ***********. ***** *** slide **** *** ******* Amazon, ****** ** **********, by ****, ** ** pretty ***** **** **** group ** ********* *** having ** ********** ******.

Lenders ********* ****** **********

**** ***** ** **** security ******* *** ****** confidence ** *** ******, according ** ***** ***** to *** *******. **** is ***, *********, ** isolated ****** ** *** Bank *** ********** ******* concerns ** *** ***********.

Vicious ***** ****

** *** ****** **** lenders **** ******* ** raise *** **** ** lending, **** ***** ******** the ************ *** *********** residential ***** *********. *** less **** ********* *** the ****** *** *****, the ****** ** ** for *********** ********* ** grow *** ****, *** some, *******.

Economics *********, *** *** ******'* *****

*******, **** ** * problem ** *** ********* of *** *********** *********** model, *** *** ******'* turning ** *** ********. The ***** *** ****** reflecting *** ******* ** changing *********** ********. ** the ***** ********* ***** call ****, *** ****** creation ***** *** ***** margins ****** **** *** traditional ***** * **** lucrative ********, ***** ********** puts ******** ******** ** valuations (*** *** *********, etc.).

Fleeing ** **********

******** ** *** ****** boy ** *** ****** to **********, **** ************ *********** focused ********* *** ********* / ******** **** **** commercial (*.*., ********.*** / ******* ******** **** *****).

***** *** ********** ****** is ********* *** **** impacted ** ***, *** historical *** ********** *******, rather **** *** *******, business ** **** *********** attractive **** *** ************ model. ** *** ***** hand, **** ** *** traditional *********** ********* *** faced **** ********** ** bankruptcy ** **** ******** solely ** ****-****** *********** against ******* ***.

Simplisafe ***** **** '*******'

*** ******** ******* ** the ******'* ****, *** certainly, *******,********** ******** * *** marketing ************** ******** *********** *********** providers ** ******* ********'* blind, ** *** ***** excerpt ***** *****:

Outlook *****

***** ** ***** ******* niches ****** *** *********** residential ****** **** *******, especially *** ******-*** ***********, mass-market *********** ** ****** severe ******** ********. **** ADT *** ****** ******* position ********** ** ***** home ********* ****** *** challenge **** ** *** much ** ** **** / *************** *** **** sustain ** *** ********* who *** **** ************ filling *** ***** *** smart **** *********.

Vote / Poll

Comments (8)

***! *** ***** **** up ** ***%! * would **** ** *** us ***** ****....

Agree
Disagree
Informative
Unhelpful
Funny: 4

* ***** **'* *** late ** **** ***** "blockchain" ********* ** **** name *** ***** $$$

** ** *** ** money ** *** ****, I'd ******** **** **** a ***, *** **** and *** **** ****/****** are ** **. ****'** seemingly ********* ********** ** far, *** *** *** hard ** ******* **** slithering ***** *** **** this ******* **** - and ** **** **, well, **'* ******** **** over *** * ***** of ******* ******* (****** too *****, ** *** big **** ********* ** debt).

Agree: 1
Disagree
Informative
Unhelpful
Funny: 2

**** *** ******* *** also *** *** ********* deals **** ******* ** over **% **** ** the ***.

Agree
Disagree
Informative: 3
Unhelpful
Funny

#*, ****** *** *******. I ***** **** *** but *** *** **** able ** ***** ** down. **'** **** * bit ******* *** ********* / ***** ****** *** we *** ****** ** get **** ******* ** this. ****** *****!

Agree
Disagree
Informative
Unhelpful
Funny

* **** **** ***** that ******** ** ******* out ** *** **** deals *****. *** ** advising *********** ********* ** find ******* ****, *** is *** ******* *** of *** ********** *****.

**** *** **********, **** what * **** *****, are *** ******** ** move **** **** ********* these ***** ******.

********* ** ****** * spoke **, ************* *** ~$650M *** *****, *** the ***** **** * prepayment *******. ** *** of ***** ******* ********* customers **** ** ***** terms *** *** ****** (which ** *** ******* uncommon), **** *** ****** much *****, ** ************* is ***** ** ** unlikely ** **** ** extend *****, ******** **** financing, ***. **** ****** those ********* ******* ** seek * *** ****, from ******* *******, *** then ****** ********** ********* on ***** ******** ****, making *** *********** ******** that ***** ********* *********** being **** **** **** expensive.

* ***** ****** **** overall ** **** ** reduced ********* *** **********, and ******** **** ***** in *&* ******** ** this ***** **** **** as **** ************* *** forced ** **** ** they ***'* **** *** capital **** **** ** the ********** ********.

Agree: 1
Disagree
Informative: 4
Unhelpful
Funny

* ******** ** *** how ****** ***** **** positive ** ****? *** anyone *** *** * case, ******* *** ***** with ** ** ***, on **** ******* ** positive ** *** *********** space? ***** **** ** you **** *** ******.

Agree: 2
Disagree
Informative
Unhelpful
Funny

**** **** *****… “**** is *** ****** ** traditional *********** ******** *********”?
** *******…. **** *** doomed ** **** ***’* embrace *** ******* ** the ******. *** ****** itself ** * ********** opportunity, *********. *** *** trend **** ****** **-**-***-**. One ** *** ********** to *********** *********** ****** is ************* *** ** do ******** ******* *** local ****** ** ***** silent *******. **** ********** will ** ******** *** same ******…. ********** **** not *** ***** ****** monitoring **********, *** *** operate ***** ***** *** monitoring ********, *** *** systems *** *** ******-*******. They ***-**** ********** *** license ** *** ** the *** *********** *****-***** sources…. **** ********** ** just ******* ******** ******** with * *** *********** budget *** **** ** puffery. **** ** *********** if ******** ***.
******: *** *****; ******* Services *****

Agree
Disagree
Informative
Unhelpful
Funny

** ** **** ********** in ****. ** **** from ** ******* **** to *******. **** ***** will **** * ******* with *** (** ***** is ***) ************ (** there ***** ***) **** come **** ** *** market.

** *** ******** ***** on **** ** ** difficult ** ** ******* experience *** *********.

Agree
Disagree
Informative
Unhelpful
Funny
Read this IPVM report for free.

This article is part of IPVM's 6,887 reports, 921 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now
Loading Related Reports