“What the Papers say” … a review of regulation
In MI, Duncan Berry, director of mortgage sales at GE Money Home Lending, discusses the importance of broker knowledge to the success of lenders.
Having provided an overview of the influential role brokers play in the mortgage market, Berry concludes that it is important for lenders to maintain their relationships with brokers and conduct research among them, to identify potential gaps in the market for development and further ways of strengthening their relationships with brokers.
Also in MI, Ian McKenna, director of the Financial Technology Research Centre, accuses large lenders of deliberately keeping affordability calculators off mortgage sourcing systems in a bid to maintain market share. Paul Fincham, senior media relations officer at Halifax, responds by saying the inclusion of affordability calculators on sourcing systems was complex, but denied competitive advantage was an issue.
McKenna says that if affordability calculators were built into sourcing systems it would help brokers to see what exactly firms were willing to lend and save time and money.
Griffiths says:
“This issue will run for many years yet. There will be a long transition period as the more enlightened lenders realise the advantage of linking affordability calculators to sourcing systems, while others will hold out until the last possible minute and then be forced into action by competitive pressures.”
In MSL, Matt Smith, creative director at WPB, warns brokers against retirement complacency, and said an exit strategy should be part of any business plan from the outset.
An exit strategy impacts upon everything you do. It is about maximising the value of your business at the time you intend to get out.
In MS, the Association of Home Information Pack Providers confirmed that interest in Home Inspection Diplomas has increased, with over 600 applicants signing up for training and assessment since the beginning of the year.
Also in MS, Alan Dring, sales director at Econveyancer, bemoans the fact that the general negativity in the trade press only encourages brokers to do nothing to prepare for the introduction of Home Information Packs.
In MD, Eddie Smith, operations manager of the Alliance of Mortgage Packagers and Distributors, says that distributors must get a life online if they want to survive. He advocates losing the packager tag, saying it’s misleading and brings to mind the paper-shuffling role of the original packagers. Packagers are at a critical crossroads in terms of how they react to the technological revolution.
Griffiths says:
“If you want a concise and honest assessment of the role played by packagers, and their future, read this article.”
Publications mentioned
Mortgage Introducer MI 10 Feb
Mortgage Solutions MSL 12 Feb
Mortgage Strategy MS 12 Feb
Mortgage Distributor MD January
