This call to action comes in response to the growing trend amongst lenders to encourage brokers to submit mortgage applications online. Online submission enables lenders to drive down costs and control distribution but, in the medium term, it could make packagers obsolete, by cutting them out of the mortgage application process altogether.
John Lee, Head of Sales & Marketing for Genesis, said: “Packagers are facing a number of issues, including their ‘non-status’ under FSA regulation, which is causing some lenders concern about continuing to use them. The biggest issue, however, is the threat of packagers being side-stepped, as more brokers submit applications online.
“To overcome these issues, a number of packagers are turning towards umbrella organisations, which can help them secure their distribution base by offering an Appointed Representative proposition. However, if the proposition remains solely based on packaged applications, their business is still at risk. A packager deciding to operate under an umbrella organisation should check that it includes a strong direct to lender product offering, which will ensure they receive payment for business submitted via this route.”
