The Alliance of Mortgage Packagers and Distributors has radically altered the reporting and payment structure for members, to guarantee proc fees.
AMPD members have agreed to report their financial position to independent auditors every six months and have committed to a set of payment standards which means that proc fees should take no longer than 10 days to be paid.
It has launched a series of initiatives designed to deliver additional confidence to brokers, lenders and third parties that deal with AMPD members.
The most significant improvements are to the reporting structure for members, and a new protection scheme for proc fees.
AMPD members recently agreed to change their code of conduct and have allocated reserves into a fund designed to ensure that panel lenders do not lose out if an AMPD member ceases trading and they end up paying proc fees twice.
Other third party providers are also included in the range of improvements as all valuation fees should always be paid within contractual arrangements.
John Mawdsley, spokesman for the group, says: “It is vital for AMPD members to differentiate themselves from those less well positioned in these difficult trading conditions. We believe this series of improvements to our reporting and payment structure, combined with a financial compensation scheme, will allow our customers to have every confidence that they are dealing with a robust and responsible organisation.”
Nigel Payne, managing director of TMB, says: “In the current climate, it is good to see AMPD introduce these measures offering brokers and lenders added value. They offer much benefit, especially when it comes to regulatory matters and the payment of proc fees. AMPD already enjoys strong lender and broker partnerships and the introduction of such stringent measures will only serve to strengthen them further.”
Richard Middleton, national sales leader from GE Money, says: “During such turbulent times in the market-place. Such initiatives can only help to inspire confidence in brokers who will certainly have concerns over product pipeline and payment of fees. We believe brokers are well placed to weather the turbulent times, but, these measures will ensure that they can manage their business effectively and be confident of maximising business potential.”