Packager Genesis Home Loans is to outsource some business as part of its plan to increase mortgage volumes.
Genesis managing director Barry Robson says: “We are virtually at full capacity, but we don't want to appoint another 20 underwriters or have to find another 2,000 square feet to put them in.
“The margins that we would earn on outsourced business are not as good as if we did it in-house, but it does represent a way of doing extra business with minimum fuss. It gives us the opportunity to vastly increase our origination without the resource headaches that would normally go with that.”
Robson adds: “We must also decide what business to outsource. We are likely, if we bring a product to market which we suspect is going to be highly successful, to outsource the underwriting on that single product. We may also pick a single lender and outsource everything we put to it. We will retain the more complicated business in-house.”
Genesis has not yet entered into any outsourcing contract, although it has talked to several companies and favours Homeloan Management. Robson says: “The operation appears to be competent and well run, it has been around the longest and has got a good track record. Providing there is no substantial downturn in the market, we will be looking to outsource some time next year and would be confident in putting that business to HML if it can handle it.”
Tim Fletcher, sales and marketing director at Homeloan Management, says: “We could take Genesis's business on without any difficulty at all.”