Knowledge is power in the sub-prime market. The arena is becoming evermore diverse, as the specialist market sees an increasing amount of intermediaries and lenders dip their toes into the adverse sector.
With large prime lenders, such as Northern Rock at the beginning of April, developing strategies to facilitate their path into selling adverse mortgage products, what’s becoming clear is that the market is becoming increasingly attractive to a large portion of the broker population. What we’re also seeing is that the sector is becoming more dynamic and specialised, and the regulatory, technological and financial requirements for intermediaries are constantly altering, requiring an ever-increasingly higher level of skill to sell these products.
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The Financial Services Authority (FSA) is always closely monitoring the adverse sector. In a November 2005 survey, the suitability rule was identified by the FSA as an area in which firms could improve. It revealed that 80 per cent of brokers were unable to justify how the sub-prime mortgage product they had supplied to their customers was applicable to their needs. The regulator is currently reassessing this matter and will release the results soon, but what is clear is that staying ahead and knowing as much as you can about selling sub-prime products is vital to success.
Forums
Mortgage Introducer’s Sub-Prime and Technology Forums, in association with The Mortgage Times Group, will bring together key industry figures identify to identify the relevant issues surrounding the adverse market. The three forums will be held in Cardiff, Manchester and Central London and will look at developments in the sector, combined with technological enhancements that can be used to the advantage of the intermediary in sourcing and processing cases.
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Value
Covering everything from the legal implications involved to the important technological enhancements that are taking place in the market place, the Forums offer all the information and guidance necessary to gaining success in the adverse market. On display at the Forums will be the new operational system for The Mortgage Times Group, offering a market-leading front and back office mortgage system.
The system includes an online case-tracking facility, enabling brokers to track the progress of a case at every stage, with online dialogue with your processing team also occurs throughout the case. The system also enables cascading and integration between The Mortgage Times Group’s 25 packaged lenders, ensuring that case details can be transferred between our packaged panel if lenders are altered, and full integration with xit2’s valuation exchange. The system also includes an online sourcing system with the ability to source sub-prime products, and will enable the broker to instruct their own valuations online via an automated valuation model, as well as instructing a solicitor through the online facility.
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The Mortgage Times Group’s packaging arm is thriving currently. The Group picked up ‘Best Packager’ at the Mortgage Introducer Awards 2007 for innovation in the packaging sector. The huge success of the Mortgage Introducer Buy-to-Let Forums in association with The Mortgage Times Group in 2006 proved hugely enlightening to visiting brokers wanting to learn more about niche markets. These forums over two were attended by over 200 mortgage intermediaries and advisers, and provided a platform for those active in the market to show how to maximise the opportunities available in specialised areas.
Success
With the success of the BTL forums, The Sub-Prime and Technology Forums will take place at three locations, at the Millennium Stadium in Cardiff on 4 September 4, Bridgewater Hall in Manchester on 2 October, and The Royal College of Physicians in London on 17 October.
The events are also sponsored by db mortgages, and Mark Bergin, director of sales and marketing at db mortgages, says of the events: “The value of these Sub-Prime Forums should not be underestimated for any brokers who are dealing or looking to deal in sub-prime mortgages. Both db mortgages and The Mortgage Times Group bring a wealth of experience to help brokers understand the complexities of the market, and add value the brokers' business.”
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