Paul Brett, director of sales and marketing at FastCom Mortgage Packaging and head of Freehold, commented: “The FSA is interested in what non-regulated and smaller packagers do as part of the mortgage origination process. Better understanding can only be a good thing.”
John Rice, managing director, of RAMP commented: “I think that the FSA is trying to do two things. Firstly, it wants to understand exactly what it is that packagers do with a possible view to regulation.
“Secondly, it is policing the perimiter and wants to ensure that unregulated packagers are not carrying out regulated activities.”
He added that RAMP had always held the view that all packagers should be regulated, though he admitted the current FSA thinking appeared to be different.
FSA spokesman Robin Gordon-Walker commented: “We always want to improve our understanding of how the industry works and especially the intricate relationship between lender, packagers and brokers. We have been talking with the relevant people to make this possible.”
Meanwhile Freehold has reported that packagers see becoming a satellite packager as a step down in terms of status. It said the decision to join is in most cases driven by the necessity to secure access to certain lenders.
Paul Brett, spokesman for Freehold said “While we have been researching the needs of packagers, Freehold has spoken to many who are either considering or have taken on satellite packager arrangements.
“The overriding feeling is that they are buying satellite packaging as a ‘take it or leave it’ option but are worried that in the end their brokers might simply migrate to the host with the real lender relationship.”
