The new company – to be formally launched next month - will provide regulatory umbrella cover, and training and compliance support, to mortgage brokers.
The deal with Optoma will boost the mortgage income MGM Assurance will pay to its agents, and forms part of MGM Assurance’s strategy to develop a market leading mortgage services operation in the lead up to regulation of the mortgage industry in 2004.
As one of the UK’s most important intermediary distribution channels and successful mortgage processing operations, Optoma is ideally positioned to partner MGM Assurance. MGM Assurance members can expect enhanced procuration fees, exceptional service standards and the facility to make payments on exchange across all lenders.
Optoma has one of the UK’s largest lender panels with 10 processed (or ‘packaged’) lenders, and 30+ on the mortgage ‘club’ panel. Conceived with full insight and knowledge of service issues that plight a mortgage broker’s day, Optoma’s processed panel will give MGM Assurance agents a more superior service than they would receive from a lender-direct arrangement. Optoma’s highly experienced and skilled underwriters are dedicated to individual lenders - having case ownership from receipt to offer – which means MGM Assurance agents can speak directly to them at any time.
Optoma will ensure that lenders provide a range of exclusive mortgage products to MGM Assurance agents and that the best procuration fees are secured. Full details of the business partnership will be announced later this month at a series of joint roadshows across the UK.
Matthew Bright, marketing director, Optoma, said: “We are very excited about providing MGM Assurance with these services and as our relationship develops, we believe we can grow our business considerably from the current level of around £1 billion.
“We have thoroughly enjoyed our discussions with MGM Assurance and believe we have created a model which will have wide application across the industry.”
MGM Assurance offers pension, protection, investment and mortgage related products. It is committed to delivering transparent, straightforward products that can be adapted to suit customer needs. Its mutual status gives it the independence to operate flexibly to provide enhanced levels of services to both business partners and customers.
Stephen Maskens, manager of MGM Home Finance, said: “Optoma is providing us with a great package which will have tremendous appeal to our appointed representatives. We are impressed by Optoma’s flexible approach, and are confident that it will create an environment in which our brokers can achieve their full potential.”
