Packager, The Mortgage Operation (TMO), has launched the Mortgage Distributors Co-operative. Initial members include BDS Mortgage Desk, Genesis Home Loans, ICMG, Mortgage 2000, MLG, Pink Home Loans and Solent Mortgage Services.
By creating a critical mass in distribution, Mark Charlesworth, chairman of the Co-op, said it could carry out cost-effective securitisation deals and create portfolios of business to sell on much faster. He said its size should also enable it to deliver books of business to order.
Individually Co-op members are set to distribute around £5bn of mortgage completions in 2002, with a significant proportion from niche lending areas.
Charlesworth said: ‘Consolidating distribution will allow members to combine the contin-ued support of their current lender relationships with the opportunity to create a new market in the UK for the pooling and distribution of mortgages in the niche product areas. This could lead to the development of a more efficient market for the funding and trading of these products.’
The primary role of the members of the Co-op will not change. The individual members will continue to operate as B2B mortgage distributors and packagers. Existing lender relationships will not be affected.