In the last few weeks and even months it has been impossible to escape the news pervading the mortgage market – that of the non-conforming crisis. The news has even dominated the television and daily news agendas.
But one factor that some have failed to look at is what impact this is likely to have on the intermediary – the professional at the coal face, completing mortgage applications and dealing with lenders on a daily basis.
As a result of the non-conforming crisis, lenders have been re-adjusting their offerings on a weekly, and in some cases daily basis, keeping up with market trends and reining in their offerings, which will undoubtedly make the job of the intermediary harder, especially in placing adverse cases.
At times like this, the support of a network could prove to be invaluable, with alerts on product updates, company moves and compliance and training support in addition to sought-after help.
Considering a network
Before the non-conforming crisis it was speculated that moves by the Financial Services Authority (FSA) was prompting many advisers to consider using a network, either as a directly authorised representative, (DA) or appointed representative (AR) and now with the recent turmoil affecting the market, suggestions that more brokers will consider the backing of a network do not seem wide of the mark.
Recent moves by the regulator to improve practices with the development of its ‘Treating Customers Fairly’ (TCF) and Continuous Professional Development (CPD) strategies have played their part in making brokers sit up and take notice of their place in the market. Following recent fines handed out by the FSA, and confirmation that it would be taking a harder line with firms falling outside of what it perceives to be good practice, there is no doubt that the network model could become a much more attractive proposition.
While exclusive products and enhanced proc fees and other incentives all help with a broker’s business, it is the increasing role of compliance support, especially in the areas of TCF and Financial Promotions, that has prompted many to look at network opportunities. While some will still view the link up as ‘losing their independence’, this is not the case, with networks providing a whole host of opportunities, for both DA and ARs.
Ad-hoc solutions
Ad-hoc opportunities for those who do not decide to fully submerge themselves within the network model are also available, including helpdesks, which understandably should be under increasing strain as a result of recent market activities.
Networks should also provide solutions in how to grow a business, even in these challenging times, be it looking at new sectors such as equity release or buy-to-let, or alternatively providing brokers with the tools to ‘get their houses in order’ before the forthcoming TCF review.
One thing is certain – even in these troubled times there is no time to rest, and networks will have to stay on top of things if they are to map a way round the current market conditions.
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