The majority of the members of the Professional Mortgage Packagers Alliance are planning to leave and set up their own group, the Association of Mortgage Packagers and Distributors.The split follows allegations that two of the four founding directors used the PMPA to further their own businesses to the detriment of other members. An industry source tells Mortgage Strategy that All Types of Mortgages and BDS persuaded the other 18 members not to recruit networks as individual companies but through the PMPA as a whole. It is alleged that AToM and BDS then went back on this and took on networks. As reported last Wednesday on Mortgage Strategy Online, non-director PMPA members were also disgruntled because of the division of shares in lender Unity Homeloans. Investec is a 25% shareholder, the directors of Infinity hold a further 25% and the remaining 50% is held by the PMPA. But within that 50%, 30% is held by the four founding packagers, AToM, BDS, Amity and Complete Mortgages, 2.5% by Jon O’Brien, operations director at PMPA, and just 17.5% between the 22 members including the four founders. Also, the shares held by PMPA members are non-voting, meaning they have no direct stake in Unity and therefore no real power in its running. It is now expected that the majority of the 18 members will form a new association with equal equity given to all members. It is also alleged that Amity might join the insurgents because of its connection with the PMM network, which other PMPA members are part of. Managing director Bob Scott was unavailable for comment. Ian Nelson, chairman of the PMPA, denies it is on the cusp of a break-up. In a statement issued by all four founding directors, he says: “The PMPA is not dissolving and it continues to have a strong core membership. Some members have recently expressed their intention to resign from the organisation, but by no means all the non-founder members.” Nelson also says a new PMPA structure is being prepared which will be offered to some members. But critics claim it is panicking about losing its core membership over structural disputes and that changing things now will be too little, too late.
- Top trends
Intermediaries are to get a helping hand in the intricate world of Home Information Packs thanks to eConveyancer’s Alan Dring and Mortgage Strategy. Dring, sales director at eConveyancer, will be writing a weekly article on the development of HIPs in the magazine and readers will be invited to forward their queries and observations to him […]
Leeds has launched a three-year buy-to-let discount mortgage. The product, currently 4.99%, is available up to 80% LTV and has no higher lending charge. Jeff Kirk, corporate relationship manager at Leeds, says: “We have looked at our product range carefully and delivered a market leading buy-to-let discount. There is no higher lending charge and 10% […]
ACCORD Mortgages is launching a cascade system in January next year that will tailor borrowers’ needs to the lender’s product criteria. The automated decisioning system is called the Advance Business Cascade, or ABC for short.It is intended to save brokers time as all they have to do is enter their client’s details and Accord will […]
Royal Bank of Scotland is to create a single intermediary channel for all its mortgage products under the banner RBS Intermediary Partners. The move follows consultation with brokers and reflects their desire for a single point of entry to the group for all the RBS mortgage brands. Each of the brands will focus on a […]
“Nothing tastes as good as skinny feels,” said supermodel Kate Moss, who is not often credited for her insights into policy making. Perhaps she should be. In politics, as in matters of diet, the course of action that is the best over the long term is often not the most desirable course of action in the short term. Add the instant gratification of the democratic electoral cycle and, instead of good policy making, you sometimes get the equivalent to a midnight binge in front of the fridge.
The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.
News and expert analysis straight to your inboxSign up