Mortgage News
Why perfect packaging pays off
Abbey’s admission that it would pay more for better quality business demonstrates that there is still a need for packagers, which has come full circle since the credit crunch.
There is a universal truth about what goes around comes around.
In the case of packaging, that value has been identified already by a number of forward thinking lenders looking at the new market conditions.
Abbey’s admission that it will need to pay more in order to attract a better quality of case is tailor made for the type of service that many have been perfecting over the past twenty years.
Those already using packagers have the experience with lenders to back up the fact that these types of services are back and ready to make a vital contribution to the profitability of both lenders and intermediaries.
Andrew Ferguson, head of sales and distribution at Kent Reliance, agrees: “Well packaged cases benefit everyone in the chain, ensuring the end client and the intermediaries’ expectations can be met whilst making life easier and more efficient for the lender.”
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With lenders’ funds being restricted, staff resources being cut and a general tightening up of criteria, it seems the role of the packager in terms of both administration and distribution has never been so relevant or needed.
The ability and experience of dealing and managing intermediary expectations, vetting applications and DIPs, managing lending tranches and volumes, market research, industry experience and direct marketing, only being paid on successful completion of the mortgage, requires the role to be very efficient internally but is also cost effective for the lenders.
Basically packagers are paid on results and therefore everyone wins – the borrower, the intermediary and the lender. Sounds like a good model, don’t you think?
Tony Salentino is director at Complete FS