Richard Hall, managing director of the Newcastle-based packager has called for the key industry players to do much more than they currently are to help introducers gain the professional qualifications, because if they walk away from the industry after December it will be a severe blow to a major distribution channel.
"Some companies – particularly those that rely on self-employed brokers – could see their sales teams destroyed at a stroke," said Hall. "There are many lenders, packagers and mortgage clubs that fall into this category and I think it is time they acted speedily."
Recent figures from the MCCB have revealed that less than 40 per cent of intermediaries have now passed the exams.
"Most mortgage intermediaries are caught in a Catch-22 situation. They want to be professional and take these exams. But they are under constant pressure from lenders and packagers alike to produce greater volumes of new business. It is of little surprise, therefore, that advisers choose to defer taking CeMAP and MAQ. But if the industry started to look to the long-term, rather than just short-term origination levels, they would realise that it has to be in everyone’s interests to address the situation properly once and for all. For without these brokers, it will be difficult to continue writing greater levels of business.
"What brokers need is encouragement and support – not a host of seminars that tell them how their world will fall apart if they do not get CeMAP and MAQ. What I am talking about is lenders and packagers paying for their intermediaries to take these exams – and providing ongoing support should any of their advisers encounter difficulties along the way.
"As an industry we are only going to get one chance to get the issue of training right. If we do not rise to the challenge then there is a good chance that certain lucrative niche lending sectors we will have problems for a long time to come. On the other hand, the rewards are there for all if lenders and packagers raise the anté over the next few months and start catering for the needs of the introducer community."
