In his article, he suggests that mortgage networks were created as a tied distribution channel, which can only be for the benefit of the network principal. He also suggests that appointed representatives (ARs) are reluctant to move network due to the potential withholding of fees and the delay in re-authorisation.
In fact, his article provided no reason for a broker to join a network and will undoubtedly have ensured that any AR that reads it will be permanently concerned about their future. He also stated that more brokers than anticipated went for direct authorisation on ‘Mortgage Day’ – they must all be delighted they did if they read this article.
I appreciate Powell’s article was designed to show how profitable it is to be a network, but did he have to make it so obvious that his ARs are captive money spinners for his own network?
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