The firm has emphasised the importance of packagers in the non-conforming market as a way of helping brokers ensure they adhere to the TCF guidelines laid out by the FSA.
Commenting, Glen Smith, managing director at Opal Home Loans, said: “As far as non-conforming mortgages are concerned, packagers are ideally placed to help the intermediary sift through the choices and make a confident recommendation. Packagers are a vital part of the TCF regime, particularly where non-conforming mortgages are concerned”
This view was supported by Paul Brett, spokesman for Freehold. He said: “While pure packagers are not regulated, it does not diminish the importance of the role they play. The non-conforming market requires particular care when trying to apply TCF stance and packagers can help intermediaries to meet those requirements.”
The packaging industry was much maligned before ‘Mortgage-Day’, with concerns regarding the sector’s role in a newly regulated environment. However, Bill Warren, director at Complete Mortgage and Loans Services, said any doubts about packagers post-regulation can no longer be substantiated.
He said: “The quality of most packagers operating in today’s environment is very good and although it may not be a regulated activity, the level to which many operate means they work as if authorised. They also have a great affinity to the non-conforming market and as a result, can certainly add value in terms of TCF.”
However, Mike Fry, director at Halton Insurance Services, said: “For people unfamiliar or new to the market, such as estate agents, a packager may be a good way of using a third party who is familiar with the mortgage market and its workings. However, intermediaries with many years’ expertise are probably better placed to carry out the work themselves.”
