PMPA has reached agreement, by consensus with its member firms, for greater disclosure of internal financial information in a bid to increase broker confidence after the closure of some packager firms.
The arrangement will entail panel lenders and valuers flagging up any concerns they may have about individual members, including proc fee delays, as early as possible.
Helen Hymos, lender relationship manager at PMPA, says: “At the moment, the whole mortgage industry is suffering from a lack of confidence.
“The collapse of some packager businesses, often leaving their brokers owed large amounts of proc fees, has had a negative effect on confidence and is potentially harmful to the packager sector.”
She adds: “As the longest established packager association, we are delighted that PMPA members have agreed by democratic vote to a greater degree of transparency and information sharing.”
“Together with the contingency that we have set up for the protection of broker payments, and negotiations in hand to provide an insurance protection as well, we are confident that this new initiative is wholly positive.”
She claims the move will enable members to give brokers comfort that their proc fees are protected.