Eddie Smith, operations director for the Alliance of Mortgage Packagers and Distributors (AMPD), warned it would create a two-tier membership that could negatively affect the working of the alliance in the future.
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Smith said: “If you’re not a full member, what are you? Associate membership is not the best way to provide a harmonious group that moves forward in the same way and I don’t feel this is the right way to go. We decided very firmly early on to have one level of membership, as we’re trying to create something that isn’t’ going to break up in the next few months.”
Vic Jannels, chairman of the Professional Mortgage Packagers Alliance (PMPA), added it was looking to recruit new members and would only do so on a full member basis. “We will not appoint associate members as this in effect creates a two-tier structure and our members agree this is not the way to create a fully integrated organisation.”
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However, John Rice, managing director for RAMP, said: “The membership will be different, but all the associate members will go into this with their eyes wide open and a full understanding of what they get out of it. We have agreed to have associate members on the basis that they have to meet our compliance standards and won’t dilute the RAMP brand.
“I believe this will strengthen the alliance. We will be trading more volume, giving us stronger relationships with the lenders on our panel. Practically, it’s the same. The principle difference is ownership, as associates will not own part of RAMP.”
