MI_16-17_distribution.qxd 27/2/09 11:10 Page 2
16 | Distribution
Difficult
decisions
Bob Hunt, chief executive of Paradigm
Mortgage Services, reviews mortgage
distribution and how it can open up
opportunities
U
ndertaking any review of mort- Some may look at this statement and believe
gage distribution in the current it is impossible to look after all those party's
climate is a difficult task, partic- interests – and given some of the distributors
ularly when we consider the that have existed (and surprisingly, continue to
myriad of changes that have operate) in the marketplace I can certainly
taken place in such a short space appreciate that way of thinking. However, as a
of time. Every part of our distributor we can say it is possible to marry up
industry has been affected - the providers look- the wants and needs of all three – indeed those
ing to secure distribution, the distributors them- that favour one party over another are unlikely
selves, the intermediaries looking to access to be in the market much longer.
products, and most importantly the customer
seeking mortgage finance. It once seemed that New environment
the opportunities for all were limitless; now of Distribution has changed of course and it is up
course all stakeholders are faced with numerous to all of us to deal with the new environment.
challenges in order to meet their targets. Early on, the Credit Crunch and lack of liquidi-
Writing as a distributor, not just of mort- ty in the market meant lenders and providers
gages but many other financial products and had to look at the way they distributed their
services, it may appear difficult to be certain products. Even with the continuous market
about any aspect of the business given the cir- distractions and difficulties they faced, most are
cumstances and events we have had to deal now well-developed with their 'new model' dis-
with. However, there are certain truisms which tribution strategies. In this market, to a larger
were relevant then and are certainly relevant degree, all bets were off and relationships
now, for instance, I can confidently say that dis- which had, up until that point, seemed set in
tributors who genuinely place the consumer, stone were reviewed and sometimes jettisoned. looking for added-value from their distribu-
the intermediary and the manufacturer's inter- With funding limited, lenders could not and tors; they are looking for quality business not
ests at the heart of their business thinking will cannot open their doors to every distributor just a request for product exclusives, enhanced
prosper. who might previously have been sat comfort- proc fees, larger overrides and little else in
ably inside the tent. To this end, the lenders are return. Lenders want to use distributors who
March 2009 Mortgage Introducer www.mortgageintroducer.com
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