Packager, Mortgage Pack Ltd (MPL), a member of Exclusive Connections, has launched a service charter in the face of industry concerns about quality of service from packagers. The charter details the procedure MPL goes through when processing mortgage business.
Phil Green, director of MPL, said: ‘Packagers are currently being slated for not providing a good service plus almost everybody is agreed that, if they are to survive, packagers have to provide value to brokers and lenders alike.’
He added: ‘If I was a broker, what would worry me about using a packager would be if they had sufficient technology in their office to package speedily, including application in principle systems and credit check facilities. Our charter gives brokers the ‘ins and outs’ of how we process a case, and what tools we have.’
As well as giving the specifics of how business will be processed and the tools available, the charter also outlines turnaround times. It states MPL will submit a fully packaged application to the lender in no more than 15 working days.
However, Green said: ‘The reality of the situation is that, if the introducing brokers play ball, then we can do it in half the time.’
MPL is also looking in the lenders’ direction. Green notes that packagers can be a problem for lenders. ‘There are those that do not do the job properly and yet expect to be paid fees. I think lenders will become a little more hard-nosed in the way they deal with packagers. The charter is a statement not only for what brokers can expect, but also what lenders can expect,’ said Green.
Commenting, Chris Fleetwood, managing director of mortgage brokers Paradigm Consulting, said: ‘I think it is an excellent marketing idea, there are some awful packagers out there. I am glad someone has realised there needs to be a standard. It is a shame the lending industry in general does not sign up to proper service standards.
‘To play devil’s advocate, I would ask what the penalty is if they fail their charter and I note guaranteeing 15 days service is not saying much.’
