The Council of Mortgage Lenders (CML) has agreed a £50,000 line of credit for the National Association of Mortgage Brokers and Advisers (NAMBA), which is intended as seed capital to get the association off the ground.
The money is to enable NAMBA to start making progress towards establishing itself as the body representing intermediaries, however, more will be needed.
Bernard Clarke, spokesman for the CML, said: ‘We anticipate intermediary firms will show support of the new body by providing the rest of the cash needed.
‘This facility we have agreed is conditional that the intermediary firms do provide the additional funds needed. I believe the total needed is around £150,000.’
Ray Boulger, senior technical manager at Charcol and member of the NAMBA steering committee, confirmed the deal.
He said: ‘Terms and conditions are attached to the deal and at the last meeting there was still some negotiation on those to do. We have another committee meeting on 26 February, and after that we will be clearer and be able to say more.’
The Association has yet to secure the extra funding from intermediary firms as it is still in the organisation stage. Even Charcol has not yet paid. ‘Certainly Charcol and the Market Place will be joining,’ said Boulger.
‘It is easy to identify the key players and once we are in a position to give concrete proposals, and clear intentions, for Association of Mortgage Intermediaries (AMI) we will approach them. It is early days, but it is not unreasonable to expect most major firms will be signing up.’
NAMBA has also not progressed any further with regards to its name change ‘ the AMI ‘ and is still involved in the associated bureaucracy. ‘It may still be the end of the month, but it will certainly be soon,’ said Boulger.