60 Seconds with....Clive Kornitzer
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Is it true that 65% of cases submitted to Abbey are shoddily packaged?
Actually, up to 65% are, as there are peaks and troughs. The average is 45% to 50%. All we want is a fully completed application form, a signed direct debit, solicitor details, the right product request, and all the standard forms filled out so that we can understand the clients’ needs and financial commitments. Plus we want the basics like bank statements and proof of employment that we consider standard. Unfortunately that’s not what we’ve been getting.
Why do you think this is happening?
It’s down to a combination of factors. Maybe brokers don’t know what to send with the application but send them in anyway knowing that we will tell them what’s missing.But that clogs up the system. Other brokers have had to let administration staff go because of the credit crunch and they’re not used to doing it themselves. We know we’re not perfect and have some things to sort out. We want to be quicker on service and not have brokers hanging on the phone for as long as they are but brokers also need to help us.
How is the Alliance & Leicester integration going?
From an intermediary perspective we have the two brands in the market. We’ve had an integrated sales force for over a month now and where we have been able to get better efficiencies and economies of scale at the back end we have done so.
Will you return to high LTV lending?
The new 95% LTV deal from Lloyds TSB was a good headline grabber but we already do guarantor mortgages.
Do appointed representatives submit better class of business than DA brokers?
Generally we look at the quality of business from individual entities rather than badge them a certain way.
Do you think the economy is recovering?
There is some way to go. We’re coming back to 70% LTV lending and although we’ve been seen as a cautious player I think more people will be looking to see what we can do. There is a fundamental shortage of housing even if you had the money. There are supply and demand issues as much as lending issues but there is money to be borrowed.
