60 Seconds with.....John Cupis

28 September 2009

I think it is sustainable as lenders have a limit on the business they can put through their branches. We’ve seen dual pricing and a lack of funding hit the intermediary sector but brokers are still taking around 50% of the market. Lenders need brokers. I expect over the next 12 months we will see funding conditions improving. Most lenders are talking about more volume next year.

Do you see further network consolidation as inevitable?

Absolutely. I think we will see more networks struggle, particularly over the winter.

What effect has dual pricing and product rationing had on your members?

It’s clearly driven more products direct. We’ve seen advisers adapt their models through cross-selling and charging fees. On product rationing we’ve had tremendous success with our tranche management system, particularly with Woolwich. For some lenders that have limited funds, particularly smaller lenders, this trend will continue.

The Conservatives plan to replace the Financial Services Authority with a Consumer Protection Agency. Do you see any merit in this?

I can see some problems with it. We will have three regulatory bodies - the Consumer Protection Agency, the Professional Standards Board and the Bank of England. We’ll end up with a tripartite of regulators. If you are a large business like us you could end up having regulatory oversight from all three. I don’t think that’s an optimal position.

Many smaller brokers have rescinded their membership of AMI recently, yet you have just joined the board. Why should brokers renew their membership?

There’s a host of benefits that membership of a trade body brings and I would urge brokers to get involved and contribute as it does make a difference. I can understand why firms are looking at costs but I would argue that AMI lobbying reduces their fees anyway.

What is the biggest challenge facing mortgage brokers today?

Generating business. We’ve seen funding and volumes cut by over two-thirds and in these unprecedented times it’s all about controlling costs and growing your business.