A new mortgage network has been formed by a group of packagers. Set up by Solent Mortgage Services, Mortgage Master and MCA Finance, Home Loan Partnerships (HLP) aims to be the first mortgage network to offer genuine member benefits.
HLP claims its raison d’Ãªtre is to help brokers tackle CP98 and is offering a complete compliance back-up service, providing brokers with the necessary software to ensure the mortgage sale is completed in accordance with regulation.
Steve Hoare, managing director of HLP, said: ‘This means, for example, that if the broker does not print off a product confirmation, the system will want to know why ‘ so lenders and packagers dealing with the broker will know why the case is compliant.’
Hoare added that if the proposals in CP98, which state lenders will be responsible for the advice offered by brokers, come to fruition, network membership will become increasingly important to brokers. ‘CP98 lends itself to networks and we may find a situation where lenders may not deal with non-network brokers,’ he said.
Members will also be able to operate under the network’s MCCB code and their professional indemnity cover. Other benefits available to members will include CeMAP training, lead generation, marketing support and PR back-up.
The network will offer access to the entire mortgage market but has negotiated exclusive deals with around 20 lenders ‘ with many in niche markets.
Unlike other networks, members will have a 25% ownership of the company, with the number of shares distributed dependent on levels of business members place.
HLP aims to have 300 members by the end of October, growing to 1,000 in the next 12 months.