Packagers EM Financial and Mortgage Match have joined forces to create a branded lending unit.
EM Residential Funding will receive packaged cases from around the country at its central London offices.
Edward Strange, former business development manager at Mayfair-based The Mortgage Placement Company, has been appointed managing director.
GMAC-RFC and SPML have already signed distribution agreements with EM Residential Funding and Strange says it is possible they may sign up another specialist lender later this year as well as several packager partners.
Roger Morris, managing director of Teesside-based EM Financial, says: “We have a distribution network around the country, and can offer national packaging with an understanding of regional trends. Our distribution overlapped with Mortgage Match so we sat down and decided to bring everything together.”
Strange believes that by working as a unit EM Residential Funding can help smaller packagers stay in business by utilising their collective bargaining power.
Amo Ruprai, director of Croydon-based Mortgage Match, says: “Many lenders are not interested in taking on new packagers at the moment. This is a Catch 22 for packagers, who can only get the business if they commit to certain targets.”
Fellow director Ian McPherson adds: “EM Residential Funding puts our distribution strengths together on an impressive scale.”
Both EM Financial and Mortgage Match will continue taking business under their own names, but have developed a common trading platform to cope with applications from packagers under the branded name.