IMLA dipping into reserve funds
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The Intermediary Mortgage Lenders Association has chosen to dip into its reserve funds rather than increase its members’ fees.
IMLA says it is being sustained by membership income, topped up by reserves.
Peter Williams, executive chairman of IMLA, says: “This reflects our decision to hold subscriptions rather than pass on costs when we have reserves. This year many organisations will trade at a loss and trade bodies must remain sensitive to that.”
He adds: “We have quite significant reserves and we chose to use these while the market is experiencing a downturn rather than increase member fees. At the level they are we have enough reserve funds to keep us going for another five years.”
The lender trade association made a post-tax loss of £26,217 for the year ended June 30 2009, compared to a profit of £6,990 in 2008, accounts filed on Companies House show.
Subscriptions totalled £84,000 in 2009, down from £110,000 in 2008.
As of June 30 2009 IMLA had 28 lender members, however a large percentage of these are now inactive or have left the mortgage market.
But Williams says both Abbey and Northern Rock have since joined the association and it is well placed for the future.
He says since June 2009 the market has settled down and IMLA is busy working on the Mortgage Funding Group which is due to hold its first meeting in March.
Williams says it also has a number of other lenders that are looking at join or return to IMLA this year.
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