Sesame has cut its packager panel after reviewing the market and introducing a new facility that guarantees advisers’ commission in the event of a packager failure.
The review was conducted against a challenging regulatory and economic environment, which has seen several lenders withdraw from the market and some packagers going into administration.
The review assessed mortgage packagers on a range of criteria, including financial due diligence and analysis of packagers’ compliance processes and procedures. Packager technology to help improve business efficiency, and regulatory TCF auditing, is also central to Sesame’s new approach.
The outcome of Sesame’s packager review means that its network members have a robust packager solution with a choice of leading mortgage packagers that provide coverage of the whole market.
Sesame’s new packager panel will comprise of All Types of Mortgages, Enterprise Broker Services, Opus Mortgages, Solent Mortgage Services, The Business Mortgage Company, TFC Homeloans, Zebra Homeloans.
As part of the new approach, packagers on the panel will be regularly reviewed and monitored to ensure they are continually meeting Sesame’s high standards.
John Cupis, managing director, mortgages and general insurance, says: “We are operating in a tough economic and regulatory climate, which is why it is imperative that we put our relationships with packagers on a new footing. As part of our new approach we have retained packager choice, and put in place strong regulatory processes. We have also protected our members’ commissions and placed technology at the heart of our packager solution.
“Technology not only helps with compliance, but also enhances advisers’ ability to source and apply for products in an ever-changing market. Packagers have invested heavily in new sourcing and compliant technology, and our panel gives advisers the ability to access that choice. I see more innovation in sourcing systems in the future and Sesame advisers will be able to benefit from these improvements.
“In the current market conditions, the ability to secure advisers’ procuration fees is paramount. With a number of high profile packagers recently going out of business, we wanted to help our members secure their revenue. We now have arrangements in place that protect advisers’ commissions in the event of packagers going into administration. We believe this valuable feature running across a panel is unique in the market and is a clear demonstration of how we can add value to our network members.”
Sesame is also planning a series of regional specialist lending roadshows later in the summer to help its members build relationships with the packagers who are part of Sesame’s new panel, along with lenders who operate in this arena.