The Professional Mortgage Packagers Alliance (PMPA) member said it was making the move as a way of growing its business, with satellites packaging cases on behalf of KGB.
Rachel Bancroft, managing director of KGB Packaging, said: “The big challenge for small packagers is to grow large enough to be able to carry some weight with lenders. Lenders are already starting to restrict their panels to a limited number of larger packagers, and this trend will continue. One way that smaller packagers can start to grow is by undertaking satellite packaging.”
KGB said that satellite packagers would benefit from access to exclusive products available to PMPA members and KGB’s on-site underwriters and earn additional fees from undertaking satellite business.
It is a structure which other PMPA members have adopted and KGB is looking to recruit six firms initially.
Bancroft added: “It is a fairly common practice which other packagers have adopted and it has worked well for them so hopefully it will work for us too.”
Doug Hall, sales director at Mortgage Choice, commented: “As long as the lead packager has the infrastructure in terms of technology and lender on-site underwriting then it can only be a good thing. From a packager’s point of view, you’ve got to have something different which sets you out from the other packagers in that area.
“There are packagers and brokers out there who would like to undertake satellite work but it depends on what they are looking to do. It is okay for the lead packager to offer satellite opportunities but they have go to offer what they need in terms of support.”
