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The Analysis Editor’s Letter

Should mortgage lenders speak to their customers?

Stephen Kiely Editor Credit Collections & Risk

Welcome to October’s edition of CCR. Those high-street lenders currently

offering direct-to-consumer mortgage propositions should cease, according to a senior industry analyst. A bold statement indeed but, speaking at

the Financial Services Expo, Roger Morris, director of Precise Mortgages, was eager to press home the point: “All high-street lenders should pull out of dealing with the customer direct and that money should be put into dealing with the intermediary market. I also believe that procuration fees should be a minimum of 0.6%, in fact they should actually be more than this.” In a discussion on procuration fees, other

members of the panel felt they were currently at the right level, however there could be some movement upwards. “Our procuration fees are always under

review,” said Louisa Sedgwick, head of intermediary distribution at Leeds Building Society. “I think there may be more parity between the fee paid to ARs and DAs. More lenders might start to pay the same across the board.” Meanwhile Ian Andrew, managing director of intermediary sales

All high-street lenders should pull out of dealing with the customer direct and that money should be put into dealing with the intermediary market

at Nationwide Building Society said that he doubted that there would be any “significant movement” on procuration-fee levels for the foreseeable future. On the issue of regulation for consumer buy-to-let (BTL)

mortgages – which will be introduced via the Mortgage Credit Directive in March next year – the panel felt there were no major issues as long as advisers secured authorisation. Mr Andrew said: “We believe about 10% of our existing BTL

customers will be ‘consumer BTL’ customers. The important thing is that intermediaries get on the register as soon as possible so we are able to deal with them.”

October 2015 He added that the Mortgage Credit

Directive was “MMR-lite” in terms of its potential impact on the marketplace. “I think there will be minimal disruption,” he said. Ms Sedgwick said that the Leeds Building

Society would be “playing in that space”. As is traditional, the October edition of

CCR will be given out at CCR-interactive, in association with Marston Holdings, and the mortgage market is just one of the major industry sectors that will be under the microscope on the big day. As this is the conference edition, we have

the very real pleasure of confirming the finalists of the Credit Excellence Awards, in association with Marston Holdings. Once again, the finalists say a lot about the breadth and diversity of this important industry. Before we announce the winners, I would

like to make two final observations. Firstly, a very deserved vote of thanks to all the judges who have been so diligent in studying the application forms and supplementary questions to really get ‘under-the-skin’ of

the applicants. It is a challenging job which requires both industry knowledge and considerable effort, so thank you all. Secondly, I would like to commend the efforts of our finalists. It

is a founding principle of the Credit Excellence Awards that only the best three applicants reach the shortlist for an award. That means that many extremely strong applicants have not even been named as finalists. As a result, actually making it onto the shortlist is a lasting

achievement – being a finalist in the Credit Excellence Awards is a mark of pride that we hope will show something very special about our finalists. I look forward to meeting you all on the big day! 3

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