Contents Compliance clubs may be the future Amid the doldrums innovation stirs
Seeing clients face to face is one of the most important things brokers do. It gives clients reassurance they’re getting advice, helps advisers get a good idea of whether a borrower is try- ing to commit fraud and stops a sale being, well, just a sale. With the industry hammering home how critical this contact with clients is it should be less surprising that lenders are cottoning on. “Know your broker” is spreading like wildfi re. It is mostly
a direct result of the Financial Services Authority’s guidance on fraud - the idea being if lenders know their distributors the likelihood of frauds slipping through the net diminishes.
In principle there is no argument against this move. It makes logical sense. But in practice it may well distort the market. With somewhere in the region of 10,000 brokers in the market it is impossible
for a lender to know everyone. The fallback then has to be technology and a reli- ance on larger umbrella distributors that can focus on monitoring subsidiaries. In the past month we’ve begun to see what this might mean for distribution. Lenders have started to reveal where their allegiances lie. While Nationwide and Lloyds Banking Group have lowered their proc fees into line with other major lenders the move signals pressure on the directly authorised side of the market. The frustration is that there is no evidence whatsoever that business quality from DAs is any different from that of appointed representatives. But the stick- ing point is evidence. While networks can claim to have control over compliance standards of ARs mortgage clubs of the old guard cannot. Therein lies the rub. The fact is lenders are beholden to the regulator and must have evidence. It is not the end for DAs though. An attraction for many in this half of the
market has been independence. They need not sacrifi ce this. A newer model of club may begin to see its turn in this new world - the compliance services club. It may not be a silver bullet, and of course restricted funding and the ongoing direct versus intermediary battle is another knot tangling the distribution web, but it is one answer.
Sarah Davidson, Editor
Mortgage Introducer Mortgage Introducer
Sarah Davidson, Editor
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Issue 42 January 2012 Publisher
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The Roman god Janus is the gatekeeper of the new year, character- ised by his two faces looking back and forwards. It is tempting in January to mull more on the year that has passed than on what the future holds. Especially when the future looks so bleak. I am not going to go over the Europe, unemployment and double dip forecasts here – read on for all you need to know on 2012’s economic outlook. Rather, I want to look forwards at a year I believe marks a
turning point for the mortgage industry. Blind optimism you may well say, but you’d be wrong. Admittedly it ain’t rosy for gross lending this year but there are signs of Spring. Brokers and lenders have pinned their hopes on buy-to-let and with Abbey for In- termediaries fi nally open for business and Paragon launching 50 new products, 2012 looks set to be a dapper year for landlords and those arranging their fi nance. Innovation is often the fi rst sign of the slow way back to competition and this year
4 News Review 7 AMI News Review 8 Property News Review 10 Lending News Review 10 Housing News Review 12 Product News Review 13 Near Prime News Review 14 Specialist Prime News Review 15 Economics News Review 16 General Insurance News Review 18 Buy-to-Let News Review 18 Short-Term Lending News Review 20 Protection News Review 24 The Outlaw
is the fi rst since pre-credit crunch that there is some real progress. Castle Trust is due to launch its partnership mortgage (one hopes in Spring) and lenders including Precise Mortgages, Aldermore and Kensington are trying really hard to lend and offer diversity in a market crying out for it. Mutuals too are throwing their hats in the ring and Leeds is the latest to launch a 100% shared ownership mortgage. Virgin Money, Tesco Bank and Home Savings Bank are all waiting in the wings and
may tread the mortgage boards this year too. Near prime is likely to grow, driven in large part by rising unemployment and the
fi nancial blips that accompany it. Clients in this bracket are often in vulnerable situa- tions and advisers have a critical role to play in helping them sort themselves out. The other area where innovation is opening its sleepy eyes is in the short-term
4 News Review 6 Property News Review 7 Lending News Review 8 Housing News Review 10 Products News Review 12 General Insurance News Review 14 Economics News Review 15 Near Prime News Review 16 Equity Release News Review 16 Packaging News Review 17 Specialist Prime News Review 18 Mortgage Market Review Analysis 20 Protection News Review 21 Scottish News Review 22 Short-term Lending News Review
The good, the bad, the boring and the vulgar
26 The Bigger Issue Vote in our poll and see what the experts think
28 Renting Hot, Mortgages Not It’s not a new question but the balance may be tipping towards renting 34 The Power Hour
market. The FSA has woken up to the potential the bridging market has to grow (and present problems) as lender after lender piles in. Pricing, LTVs and criteria were all beginning to look more interesting in this sector last year and I suspect 2012 will see that continue. Best of all, the brokers in our cover feature on pages 28-33 are fi red up about busi- ness prospects this year not overwhelmed by the fl ames of the economy. In spite of all the gloom it is reassuring to see that people’s spirits aren’t dampened.
Industry experts discuss the seachange within the industry regarding distribution 40 The Interview MI talks to Sesame’s John Cupis 42 House prices
MI talks to Abbey for Intermediaries’ Miguel Sard
42 House prices Numbers reveal the national picture
What has happened over the past month 54 Hall of Fame
44 Bridging and Commercial News Review 46 NACFB News Digest The NACFB shares its latest news
50 Hall of Fame
Who is infamous this month? Cover: Quan Dich / Robyn Hall
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Issue 45 April 2012
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www.exact.co.uk www.mortgageintroducer.com StripintroducerEXACT.indd 1 MORTGAGE INTRODUCER JANUARY 2012 MORTGAGE INTRODUCER APRIL 2012 23 3 13/12/2010 16:25 Fergusson House, 124-128 City Road, London EC1V 2NJ
Mortgage Introducer, Fergusson House, 124-128 City Road, London EC1V 2NJ
44 Bridging and Commercial News Review 46 NACFB News digest The NACFB shares its news from the past month
28 The burning issue How brokers around the UK are faring 34 The Power Hour How to beat fraud 40 The Interview
24 The Bigger Issue Vote in our poll and see what the experts think
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