The firm says that while other outsourcing companies deal with mortgage processing, the problem is that in the main they are not specialised, with few multi-client firms like HML.HML managing director Steve Haggarty says that the market needs decent competition in order to keep evolving. “The basic premise of any market is that you need competition to drive the market forward,” he says. “It keeps people creative and assertive. In the secondary market there haven’t been others doing what we do. Vertex has the potential to make a mark.” HML believes there is the possibility of a market shake-up with Global losing its Barclays contract. Haggarty says: “Global will either make a real impact with this opportunity, or it could be disastrous for the company.” He adds: “A lot of other building societies such as Scarborough are small niche players good at what they do, but they could be restrained by size. Then there are companies such as Electronic Data Service, whose contracts are mainly with government bodies.” Haggarty says there are a number of companies that act as competition on some level, “but we’re the only multi-client company. That’s what makes life easier, as everyone is dealing with different lenders so no one is doing the same thing at the same time. “It makes it more difficult to drum up competition.”
Homeloan Management has warned that more competition is needed in the outsourcing mortgage market to keep it healthy.