I do not have much to say this month. GPS and I have been through uncertain times in the past. It is now a time to be even more selective in loan pipeline, even more diligent in loan assessment, and even tighter in loan management. Due to the hard work put in over the last few months, we find ourselves in a very good position. The sky will not fall down and the sun will rise again.
The GPS loan book continues to be fully performing. I do not have any real concerns about the position of GPS in any of the current loans. We currently have approximately six months’ worth of work in the loan pipeline, it will just be a matter of how many loans will meet our standards.
My largest concern is that GPS may have to think about restricting the amount of funds we accept from new investors. This is if we cannot source a sufficient number of quality loans. It is the same old GPS adage that we would sooner not take investors’ money than not give it back. Basically, we lend because we want to lend, and not because we have to lend.
My wife, Debbie, put me in my place on this concern. She informed me that she has listened to my concerns for over twenty years of lending, and cannot believe that my current complaint is that I now have too much money. It was a short conversation and a good reality check.
I hope all GPS investors had an as sound 2016 financial year as GPS.