"Stress in the Residential Market" - Major Lender Exits

By: John Honovich, Published on Nov 06, 2019

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.

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

*** *********** ******** / 'alarm' ****** ** ******* worse, ** ***** *** traditional *******. ***, *** of *** ******* ******* in *** ******** *** quietly ******.

** **** ****, ** examine *** ****, **** is ***** ***** ** the ****** *** *** it ***** *** *****.

[***************]

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

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

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

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

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

**** *********** ************** *************** ****** * ******* 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 ***** ****....

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

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

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

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

* **** **** ***** 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 ********** ********.

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

**** **** *****… “**** 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 *****

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

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

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Most Recent Industry Reports

ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...
Gatekeeper Security Company Profile - Detecting Faces Inside Vehicles on Nov 14, 2019
Border security is a common discussion in mainstream US news and politics, as is the use of banned Chinese equipment by US Government agencies....
Hikvision CEO And Vice-Chair Under PRC Government Investigation on Nov 14, 2019
In a surprising and globally covered move, Hikvision CEO Hu Yangzhong and Vice-Chairman Gong Hongjia are being investigated by China's securities...
Camera Field of View (FoV) Guide on Nov 13, 2019
Field of View (FoV) and Angle of View (AoV), are deceptively complex. At their most basic, they simply describe what the camera can "see" and seem...
UK Big Brother Watch: Hikvision Is 'Morally Bankrupt' on Nov 13, 2019
UK civil liberties advocate Big Brother Watch has condemned Hikvision as being 'morally bankrupt' following IPVM exposing Hikvision marketing...
Color Low Light Mega Camera Shootout - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Panasonic, Speco, Sony, Vivotek on Nov 12, 2019
This is the biggest color low light shootout ever, testing 20+ super low light models from 10 manufacturers: Increasingly, each manufacturer...
Wireless / WiFi Access Lock Guide on Nov 12, 2019
For some access openings, running wires can add thousands in cost, and wireless alternatives that avoid it becomes appealing. But using wireless...
Hikvision Global News Reports Directory on Nov 11, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Hikvision Markets Uyghur Ethnicity Analytics, Now Covers Up on Nov 11, 2019
Hikvision has marketed an AI camera that automatically identifies Uyghurs, on its China website, only covering it up days ago after IPVM questioned...
Open vs End-to-End Systems: Integrator Statistics 2019 on Nov 11, 2019
Preference for open systems is on the decline, according to new IPVM statistics. We asked integrators: For video surveillance systems, do you...