Those that are left in our industry are clearly committed to it and had to work hard to survive.
The levels of funding available and where interest rates are likely to track, means that opportunity will be limited.
More tellingly, lenders are using the opportunity of market difficulty to try to be selective about where they take business from and try to influence the quality of the applications that come through their doors.
AMI has become aware of some measures that are being applied and are calling for calm and caution. We have seen a number of brokers removed from panels due to allegations of involvement in fraudulent applications.
Where there is evidence of this, a lender has the full support of all. Removal for issues in DIP to completion rates or application rejection rates is a worrying development.
It has to be part of a broker’s role to test the water with a range of lenders to establish the most appropriate solution for their client, the consumer looking for a mortgage.
Given the scarcity of funding, the leaner back office processes and the reductions we have seen in automated (fast-track type) under-writing, lenders need well packaged, complete cases that meet their criteria in order to keep their costs down.
Where a lender is delivered such complete cases that exceed criteria, is it unreasonable that such is welcomed, and those that consistently fail to do this should be sanctioned?
We should aspire as brokers to be professional, efficient and accurate in our work. This I feel achieves consensus support.
Those that can achieve these high standards should be rewarded. However we need to take care that in pushing the quality card to the top of the pile, we do not forget what makes an open vibrant and competitive market good for all consumers in maintaining a level playing field.
Robert Sinclair is director at the Association of Mortgage Intermediaries
