TFC intends to work with network Principals to provide a cost effective outsourced packaging service, which will compliment and build on the service already on offer to their members.
Wayne Smethurst, Senior Partner at The Finance Centre, said: “We have considered the various strategic options open to us and have decided to focus on what we do best – packaging. We want to work in partnership with lenders and regulated networks to provide a high quality outsourced packaging service and we will, of course, continue to support intermediaries who become directly authorised to help strengthen their proposition.”
Packagers who do not provide any advice to borrowers will not be regulated by the FSA when it takes control of the mortgage market in October next year. Only broker-packagers and packagers who intend becoming network Principals will need to be regulated.
Smethurst continues: “I believe there is a real danger that some packagers will feel pressured into becoming network Principals, because they think there are no other options open to them. Becoming a Principal is not a decision to be made lightly and I have no doubt that some of the new networks will fail because they don’t understand the full implications of running a network. Establishing a new network requires specialist skills and a considerable investment in staff, technology, marketing and training. There are other options available to good quality packagers and they should not feel panicked into making hasty decisions which they may regret in the months ahead.”
During 2003 TFC has enhanced every area of its business to ensure it is able to provide a state-of-the-art packaging service for the future. TFC provides a service throughout the UK (including Northern Ireland) and was the first packager to receive ISO 9001 Quality Accreditation.
Smethurst concludes: “TFC is actively seeking alliances with networks as many of those we have spoken to recognise they do not have a comprehensive packaging facility, particularly in the sub-prime market. Networks should be wary, however, about entering into negotiations with packagers who are setting up their own AR network in direct competition, as this could represent a conflict of interest.”
TFC provides both residential and commercial packaging services in the niche and sub-prime mortgage markets and works with a panel of leading lenders. Intermediaries and networks who require further information about TFC services, can either phone 01925 244466 or visit the company’s website at www.thefinancecentre.com
