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Protection
not the vaguest sense of wrongdoing can be at least initially, to use our members being able to place the business. It used to be a
attributed to a reputable broker, and that all exclusively as a route to market. common call from certain members that the
business dealings are upfront, honest, The fact is that the commercial finance Association should act as a buying group to
transparent and the best available for the market has changed over the last 2 years, secure higher commissions for its
client. to a degree which makes it almost membership. Lenders were unwilling then;
unrecognisable from the market of 2007. and now as many are trying to restrict the
Safe hands Many lenders have left the market: some amount of business coming through their
We recognise how difficult the last 18 months with no notice leaving brokers’ clients high doors, paying extra for introductions makes
have been for all brokers - our members and dry; some have closed their doors to even less sense. In the current climate, the fact
included. But with faith in the financial brokers’ business; all others have tightened that a lender will even consider a broker’s
system at breaking point and feelings running their criteria; and the amateur dabbling in a proposition is a bonus and the NACFB has
high now is not the time to take your eye off bit of commercial business as part of a move concentrated on ensuring that as many
the TCF ball. The Association has been to ‘diversify’ has long since found the grass funders are ‘open for business’, for members
working hard to make sure that lenders who was not, as had been promised, any greener. and their clients, as possible.
are becoming more risk averse look to NACFB And, although it sounds harsh, this is no Whilst many of our members are not FSA
members as safe, introductory hands. We have great loss. Certainly the fact that high- registered it is still imperative that our
launched a back office software system, commission, no-work lenders have left the members follow the TCF ethos. The
CommercialKeeper, in association with market, put paid to the moral dilemma that reputation of the financial services sector is
Bristol-based MortgageKeeper, to our brokers many non-expert brokers found themselves is fragile and it would take far less now than it
so that they can keep accurate and up to date in: either place the business yourself with a would in a healthy market to do irreparable
records of their clients and their deals to no experience required ‘non-status’ lender damage. Grasping for short term gain will
enhance their existing professionalism. In the and earn 2%, or place it through a only ensure that the market’s recovery time is
first quarter of next year we are looking to commercial broker who will put it to the high even slower that has already been forecast, as
introduce new and exclusive opportunities to street and you’ll be lucky if you earn a half trust is worn away. The role of the broker is
our members using this system to allow them percent. not only to find credit for their clients, but
to earn extra income without losing sight of also to ensure that they are getting the best
the aims of TCF. Lenders and funders from Changes deal they can for them. So whether they are
other sectors of the market are starting to see Because the market has changed, brokers have considering margins, arrangement fees or even
a value in our approach; as some look to make changed. Higher commissions and overriders exit costs, our members will be looking to
a tentative return to lending and have decided, have become less of a priority that actually provide the best deal possible.
November 2009 Mortgage Introducer www.mortgageintroducer.com
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