Packagers have accused lenders of having preferred the development of IT solutions aimed at getting direct business from brokers, rather than working with packagers to improve their technology.
Ian Balfour, sales and marketing director of Solent Mortgage Services, says lenders have consistently failed to work with packagers.
By doing so he says they are ignoring their most important source of distribution.
He says: “The lenders recognise that we bring them 70% of distribution but they always go to the market before they come to us. The lenders are going to look at other channels of distribution. We understand that. But if we supply 70% of distribution then the lenders need to talk to us and we need to have true partnerships.”
Michael Clapper, chief executive of the Enterprise Group, adds: “I think the lenders did their best to hold off the inevitable for as long as they could by not bringing to market the necessary technology for packagers at the same time as the technology for brokers to get direct access to them.
“But they have resigned themselves to the fact they have to develop the technology with packagers as well.”
The comments formed part of a debate the relationship between packagers and lenders and whether lenders are justified in offering technology solutions direct to brokers.
Several lenders including Mortgages PLC, GMAC-RFC and Platform have led technolgy advancements over the last twelve months but concerns have been raised over single lender cascading in particular.