The recent Mortgage Introducer Sub-Prime & Technology Forums, in association with the Mortgage Times Group, could not have come at a better time. With the credit crisis impacting on global markets, it is fair to say that, as an industry, we’re experiencing some tough times.
So the recent forums in Cardiff, Manchester and London proved perfect timing for industry figures to get together with MI and discuss the current conditions.
With the market in turmoil, the forums presented brokers with the opportunity to ask some direct questions to a panel of lenders operating in the non-conforming market. What was interesting was the faith that all speakers, and indeed delegates still had in the sector.
A degree of struggle
In the face of adversity, it was clear that while there had indeed been a degree of struggle following the credit crunch, market commentators saw this as a period of correction – a time for brokers and lenders to get their houses in order and perhaps rein in what may have been a world gone slightly mad.
Admittedly, there are still challenging times ahead, with many delegates predicting a further six to eight months of cutbacks across all areas of the market, taking the impact of the credit crunch well into 2008.
Several predicted this could lead to some players opting to bow out of the market earlier than they had perhaps originally planned, while others will simply be casualties of war in the current cut-throat climate.
Tackling the issues head-on
The issue of proc fees and completing transactions was high on the agenda at the forums, and in his presentation, ‘Demystifying the legal process’, Eddie Goldsmith, senior partner at Goldsmith Williams, dicussed many of the issues that brokers face when completing mortgage deals.
Goldsmith admitted that the legal process was rather archaic in comparison to the developments that have been made in the mortgage market, and outlined key technological advancements that would help to streamline the legal process and as a result, attempt to make the entire house purchase process faster.
Speeches from the Mortgage Times Group also proved insightful, highlighting the ways in which lenders have stretched underwriting boundaries in a bid to win business and differentiate themselves from other lenders. While much of this has been reined back in the face of current market pressures, it proved a useful breakdown of lender criteria and the differences within the non-conforming product hierarchy.
Technology
Also on the agenda was technology. There is no escaping the significance of technology, particularly in today’s market, where sourcing systems typically filter up to 60,000 types of mortgage product, when applications are submitted online and when it is the norm to communicate with lenders by e-mail.
While we are all au fait with e-mail, Blackberry’s, and the internet, one problem frequently voiced by delegates was the lack of compatibility between broker and lender systems. This is where brokers felt most frustrated, citing missing applications or problems downloading applications as common and time-consuming.
However, delegates and speakers were all in agreement as to the importance of technology in the mortgage arena, and admitted that while problems were still present, these would be ironed out as technology developed.
All in all, the forums proved useful and insightful to all those who attended and while timing was of the essence, it was excellent to see so many faces at each of the events, especially given the current market conditions. If there was one thing that we all came away certain of, it is that everyone is determined to ensure the market remains strong and weathers the current storm.
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