While the failure of some sourcing systems to perform as promised is a common complaint, the continued failure of the FSA and some lenders to display all registered brokers and the well publicised online lender Key Facts Illustration (KFIs problems have also played a part.
Matthew Bright, managing director of Surrey-based network and packager Optoma, believes there are simply too many barriers for brokers to negotiate in order for them to produce anywhere near the volumes they were doing in the run-up to 31 October.
“The whole process adopted by some lenders and the sourcing systems has been facile to say the least,” said Bright.
“With so much of the industry using Trigold as the backbone to their operations it is no wonder that many brokers are simply too wary or unable to write any decent volumes of business.”
Bill Warren, director of the Complete Network, agreed with Bright but added: “During the last few weeks of October most brokers spent less time on lead generation and considerably more on preparing for regulation.
“This has now filtered through to the business volumes that lenders are experiencing.”
Warren went on to say that his network members had been largely unaffected by sourcing system problems because they used the Homebuyer sourcing system which had not, as yet, experienced any problems.
Tony Jones, managing director of Pink Home Loans, said the general slowdown in the housing market due to interest rate rises had also contributed to the fall in business volumes.
However, Jones said the effect of sourcing system failures should not be underestimated.
“We can expect to see some very competitive products next year as lenders try to reach what I would imagine will be some very ambitious targets,” he predicted.
Jon O’Brien, operations director at Professional Mortgage Packagers Associates (PMPA), predicted that those networks without robust business plans or significant financial backing would soon begin to struggle.
“December and January will be a more or less two week months,” he said.
“If networks are suffering from low volumes now then the next few months are not holding much hope.”
