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Gearing up to cope with the mortgage boom – IMLA

by: Peter Williams
  • 25/07/2013
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Gearing up to cope with the mortgage boom – IMLA
Since the downturn mortgage brokers have become an increasingly rare species, with recent figures showing current numbers are just half of what they were at their peak.

Notwithstanding the strict qualification requirements in the Mortgage Market Review (MMR) and the FCA’s recent fees hike, the market lull has taken its toll – but the signs are that the tide has turned.

CML figures show gross mortgage lending in June reached heights that have not been seen since before October 2008, with estimated lending of around £15bn.

Government support and investment means this upward trend is highly likely to continue for the rest of the year, which begs the question of how this smaller number of brokers is going to deal with the increasing activity.

The opportunity is there for brokers to grow their businesses and this desire was confirmed in a recent Mortgage Solutions poll, which showed a third (32%) of broker firms see recruiting new staff as their top priority for the next six months.

But the same principle applies as with an increase in mortgage applications, as any lender will agree: quality is every bit as important as quantity.

The MMR was intended to ensure good practice and encourage trust between industry and the general public. Many of its provisions are already standard practice and the Financial Ombudsman Service even attributed the recent rise in mortgage related consumer complaints to ‘suspicions’ as much as actual grievances.

Maintaining broker quality is absolutely essential to bridge the trust gap. This is precisely why IMLA is working with various parties to create a solution for industry-wide registration.

Having a single, authoritative resource containing information on the broker community would boost lender and broker efficiency, which stands to benefit consumers through improved product and service offerings. That way everyone can toast the mortgage broker’s rebirth.

Peter Williams is executive director at IMLA

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