During a speech to the IIR Mortgage World conference, Warren said that statutory regulation represented a “giant step forward” for many packagers,
He said: “Evolution is one route forward, offering opportunities for smaller firms to merge or start broking. Acquisition is another option. With smaller firms now possibly looking for a purchaser, there should be plenty of choice for medium-sized packagers to grow in this way. Lenders are also looking to invest in well-run, successful packager firms.”
Commenting on Warren’s speech, Tony Jones, managing director of Midlands-based packager and network, Pink, said: “One thing we will definitely see is consolidation in the market. There will be fewer brokers, packagers and lenders. Regulation will cause a Darwinian shake out, providing those who survive with massive opportunities.”
He went on to say that the FSA was currently considering regulating mortgage administration, which would eventually bring those packagers who were not currently regulated under the FSA umbrella.
John Rice, managing director of RAMP, said: “Bill is absolutely right. Those who are bigger, faster, fitter and stronger will benefit hugely.”
Rice went on to say that working within lenders interpretations of regulation would prove the biggest challenge following regulation.
