This week Money Marketing (MM, 26 October) reports that over the next two years HBOS is to pump £10 million into improving its dominant position in the intermediary mortgage market, over and above its business-as-usual investment.
Philip Grant, managing director of intermediary distribution at HBOS, says that it is generally about enhancing point-of-sale for brokers and case-tracking. Openwork mortgage proposition director, Paul Shearman, says: “HBOS has not achieved its dominance without investment. Many new entrants have strong IT platforms so I am not surprised by the news.”
Griffiths says:
“I wholeheartedly agree with the views of Paul Shearman, whom I know to be a keen observer of the business scene and a shrewd investor. While I would question the relatively small sum of £10m for a company of the size of HBOS, I am sure it will spur on other mainstream lenders to up their game and improve their services to mortgage intermediaries.”
Financial Adviser (FA, 26 October) reported that Manchester BS is on the takeover trail and is in talks to take over the Classic mortgage network. David Cowie of Manchester BS says: “Sooner or later there will be some consolidation in our sector.
Mortgage Introducer (MI, 28 October) carries a lot of comment about the decision of the Office of Fair Trading (OFT) to refer the payment protection insurance (PPI) market to the Competition Commission.
In the ‘Letters’ pages, one correspondent asks: “Why has the Financial Services Authority (FSA) not acted to stop single premium accident, sickness and unemployment insurance?” while another, known only as Bob, says: “The industry has worked tirelessly to make sure brokers and consumers recognise the difference between PPI and MPPI.”
Griffiths says:
“It’s obvious, isn’t it? One has got the word ‘mortgage’ in front.”
On a more serious note, Bob goes on to say that PPI has a place in the market, but the concerns are more prevalent than those posed by MPPI, a sector that has been unfairly tarnished by the same brush as PPI.
Simon Burgess, managing director of britishinsurance.com, comments: “What is perhaps most disappointing is that intermediaries in the mortgage market are not providing clients with any real choice when it comes to MPPI. Many have in place single supplier deals with MPPI providers and simply offer that product to each and every client.”
Over the page, Rob Griffiths, associate director of the Association of Mortgage Intermediaries, says: “This sector is not likely to leave the spotlight for many months to come and brokers must satisfy themselves they are acting compliantly in the sale of these products. The regulators’ eyes are most definitely on you.”
All the mortgage magazines cover the two-year anniversary of FSA regulation. Iain Williamson, head of key accounts at BM Solutions, begins his MI article saying: “Cotton is traditionally the theme for second anniversary gifts, although it will be interesting to see what presents get sent to the FSA to mark its second year overseeing the mortgage market.”
Griffiths says:
“Cotton earplugs would seem the right gift if the FSA wants to ignore the growing clamour from the industry to put its own house in order. Top marks for fining miscreants such as Best Advice and loans.co.uk, and closing down Bali Financial Services, but what about the less than adequate supervision of thousands of other directly authorised firms in the market?”
.
Financial Adviser FA Oct 26
Money Marketing MM Oct 26
Mortgage Introducer MI Oct 28
Mortgage Solutions MSL Oct 30
