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Lenders and brokers should form their own coalition

Partnerships have always been a central part of what it is to be human. Indeed, as the English poet John Donne noted in 1624, “No man is an island”. Yet centuries later we’re still faced with challenges as to how we understand partnership. It used to be the Prime Minister and Chancellor. Now it’s the Prime Minister and Deputy Prime Minister. It used to be one party on the majority benches in Westminster. Now it’s two parties with two colours and two ideologies, apparently working together for a joint idea of “freedom, fairness and

responsibility”. Whether the Conservative Liberal coalition will stand the test of a tough

fi ve years is a matter of debate but the central promise is laudable in principle. Freedom. Fairness. Responsibility. Ideals that we in the mortgage industry are far from right now. The lender broker dynamic has seen the power balance do a 180˚ about turn with lenders holding all the cards and many brokers left feeling shut out in the cold. Credit scoring and criteria are still prohibitive and there is a simmering mood that lenders aren’t playing fair. Dual pricing continues to rear its ugly head, with brokers decrying what is seen as lenders’ tactics for controlling business volumes and taking margin where they can. This is no longer a free market, but one under siege from debt.

The Council of Mortgage Lenders and the Association of Mortgage Intermediaries have also gone head to head in a move away from partnership and into confrontation. The CML believes branch-based intermediaries should be exempt from the FSA’s proposed individual register for mortgage advisers. AMI says if the FSA’s goal is consumer protection and raised standards of responsibility across the industry, then every single person making a material change to a mortgage contract should be on that register. Whatever the fi nal outcome for the individual register, dual pricing and the lender broker balance, the fi ght for freedom, fairness and responsibility is a goal worthy of serious discussion. Lenders and brokers should form their own coalition partnership and work together to achieve it.

Sarah Davidson, Deputy Editor

Issue 23 June 2010

Editor

Nia Williams, 0207 490 0693 Nia@thepublishinggroup.co.uk

Deputy Editor

Sarah Davidson, 020 7490 1365 Sarah@thepublishinggroup.co.uk

Publisher

Robyn Hall, 0207 490 0588 Robyn@thepublishinggroup.co.uk

Advertising Manager

Matt Bond, 020 7490 0588 Matt@thepublishinggroup.co.uk

Subscriptions

Andrew Goldsmith, 0207 490 0622 Andrew@thepublishinggroup.co.uk

Head of Production

Melanie Jones, 020 8290 4999 melanie@mortgageintroducer.com

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4 Buy-to-let news 5 Equity release news 6 Protection news 8 Protection information

4 News Review 6 Specialist Prime News Review 8 Buy-to-let News Review 10 Equity Release News Review 12 Protection News Review 13 Product News Analysis

12 Diary & moves

17 Letters

Have your say

What would your client get without cover?

10 Statistics

A look at house price information around the country, comparing 2009 with 2008

16 Questions from hell

All your regulatory queries answered

14 Questions from hell

All your regulatory queries answered

16 Bridging

17 Opportunities

From challenges to opportunities

18 Be positive

Start adapting from Day One

18 When Red is not enough

Why we must accept the FSA’s judgment

How bridging has been affected by the

24 Fasten your seatbelts

Alan Cleary talks about the launch of Precise Mortgages

28 Verifying valuations

Valuations need to be addressed for equity release

21 Feel-good factor

At least the World Cup is coming

22 Back to FSA basics

The impact of regulation on TCF

24 Unintended consequences

The impact of the past year

25 Focus on the future

Don’t look back with anger

38 Training

26 Wot remortgage?

When will the market pick up?

40 Commercial news 42 All change

30 Applying TCF to repossession sales

Lenders must meet their TCF targets

32 Generate extra income

Wills and asset protection could make you money

34 Boost your income, protect theirs

Why should brokers sell Income Protection?

36 Consequences of the coalition

A look at what the coalition is proposing

28 The wheat from the chaf

What 2010 will mean for short-term fi nance

Sample CeMAP questions for your CPD

29 Time to eat glass

Aldermore gives an economic viewpoint

30 Slow but steady

This is the CML’s view for next year

ADVICE TO READERS

Who is infamous this month?

The Publishing Group Limited, Davina House, Suite 305, 137-149 Goswell Road, London EC1V 7ET

Information carried in Mortgage Introducer is checked for accuracy, but we recommend that you make enquiries and, if necessary, take legal advice before entering into any transactions. Any views or opinions expressed in this magazine are solely those of the author and do not necessarily represent those of The Publishing Group Ltd. All rights reserved in respect of all articles, drawings, photographs etc published in Mortgage Introducer anywhere in the world. Reproduction or imitations of these are expressly forbidden without permission of the publishers. Editorial contribu- tions requiring an answer should be accompanied by a stamped self-addressed envelope. No responsibility can be taken for contributions lost or damaged in the post. Conditions of sale and supply: this periodical is sold subject to the following conditions, namely that it shall not without the prior written consent of the publishers be lent, resold, hired out or otherwise disposed of in a mutilated condition or in any unauthorised cover by way of trade or affi xed to any advertis- ing, literary or pictorial matter whatsoever. All advertising is subject to the terms of our current rate card.

How the NACFB will work with the new regime

46 Hall of Fame

14 The bigger issue

Vote in our poll and see what the experts think

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MORTGAGE INTRODUCER JUNE 2010 317/5/10 15:13:45

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