MIp4_0210:MI 2008 21/01/2010 17:14 Page 12
4
News review
News review
A look at the major issues of the
month by Robyn Hall
I
t wasn’t just high street retailers that were and the MI office was deluged with behalf of some 30 lenders with the majority
trying to woo shoppers with a bargain complaints with one broker even threatening thought to operate similar charging structure
during the traditional January sales. to inflict personal damage on the two. to GMAC.
Banks and building societies were also in Elsewhere on the network front the Based on past performance of at least one
on the act and we saw a whole host of mystery over the pre-Christmas decision by large loan pool of the 400,000 customers
lenders reducing their fixed rates – both Personal Touch Financial Services to suspend serviced by HML around 20% will already be
direct and through the intermediary channel. chairman Martin Wilson was resolved with in arrears – which would also mean 80,000
Reductions were seen from the likes of the announcement that he was going to are being unfairly charged each month.
Chelsea, Coventry, Nationwide, Yorkshire, retire, although he would still play an The FSA ruling last year creates a major
Halifax and HSBC as lenders vied to ambassadorial roll for the company. Mystery headache for lenders and not least HML as
maintain market share and all against a solved then. theoretically all other “HML” customers that
backdrop of static Bank interest rates and And it wasn’t just networks in crisis. have gone into arrears since 2004 could also
swap rates at the top of their recent trading January highlighted the plight of many be eligible for a refund if their lender had
range. broker firms that are still surviving on a similar charging structures in place.
With a number of smaller lenders looking knife edge as the credit crunch claimed its Cerris Tavinor, spokeswoman for the
to enter the market it was a sure fire sign that latest scalp, this time in the shape of London- regulator, told Mortgage Introducer: “One of
2010, or at least the start of 2010, would see broker Quantum Mortgages, which was the reasons why we publish enforcement
some competition return to the mortgage forced to shut-up shop. cases is the message that it sends to
market. And while it’s not exactly time for Jonathan Burridge, Quantum managing everybody else in that sector. Every
borrowers to breathe a sigh of relief the director, summed up his feelings in a brief enforcement case is a warning. We published
market is certainly in a better place than it statement to Mortgage Introducer. our findings and the point of that is so
was 12 months ago. “I believed that we had the lungs to see us lenders look at what they are doing and
Indeed research from Moneysupermarket through to the recovery of the sector, ensure that they are meeting our standards
mid-January put the number of products however, we held our breath for two years and rules.”
available past the 2,500 mark for the first and with another twelve months of holding On the whole January was a good start to
time since May last year. on we simply were not able to continue.” the year and I’m desperate not to sound
It was a mortgage milestone that that saw It was another sad loss for the industry but negative as we roll into February. While we
the number of available products increasing one that ended on an upbeat note with every all might be starting to come to terms with
for the third month in a row. Obviously it’s member of staff at the firm thought to have the wider economy there are still a number
still a far cry from pre-credit crunch found new employment within the mortgage of stumbling blocks approaching us. The
conditions when there were 12 times as many industry. possibility of unemployment rising, a
products available but it was some way to the Towards the end of the month Mortgage General Election coming up and the issues it
4,500 total of the late 1990s and the Introducer also exclusively reported on the raises are but two. And then there’s the entire
beginning of the last boom. And as always, fallout still to come from the FSA’s £10.5 issue of quantative easing to contend with
more choice means more competition – million fine on GMAC-RFC towards the end and what exactly will happen when UK PLC
which of course means even more need to of last year for unfair treatment of customers stops printing money. Indeed, it remains to
employ the services of a professional in arrears or threatened with repossession. be seen whether any of this new money has
mortgage broker to champion the consumer An investigation by this magazine revealed been underpinning an already fragile
cause. that over 400,000 mortgage borrowers mortgage market.
More unprofessional was the conduct of exposed to unfair arrears charging by Yet those thoughts are for another month.
former Mortgage Times directors Chris May mortgage lenders and more than 80,000 At the moment, amongst consumers at least,
and Paul Carmody. Within days of the homeowners in arrears could also be due hope springs eternal.
network going to the wall they had seemingly compensation as the FSA cracks down on For brokers it may not be quite time to
launched Carmody & May, a consultancy unfair fees. breathe a sigh of relief, at least not yet, but
which, in their words, is able to “identify GMAC outsourced its administration to January was certainly a month to come up
short and long term risks”. Understandably third party processor Home Loan for air as we sail headstrong into 2010 and
former Mortgage Times ARs were not happy Management which also services loans on beyond.
Februay 2010 Mortgage Introducer www.mortgageintroducer.com
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