End of the line for PMPA

The Professional Mortgage Packagers Alliance is to close from September 30 as a result of current market conditions.

Earlier this year founder Ian Nelson resigned followed by chairman Vic Jannels.

Helen Hymos, acting chair of PMPA, says: “In this current economic environment it is crucial to understand the importance of all packager firms to focus on the businesses which actually provide their living.

“Every member of PMPA has value as a single business, and I believe that lenders will continue to have packaging agreements with good packagers of all sizes.”

PMPA was the first of the packager alliances when it was set up in July 2000. As an alliance it offered volume distribution of sub-prime and specialist products.

But Hymos says she recognises that times have changed and the days of the packager alliance are numbered.

She adds: “We believe that lenders will manage their distribution in smaller, more controlled tranches of business through much tighter relationships and with fewer distributors.

“We believe that PMPA achieved its objectives very successfully and set the trend of bringing lenders and packagers closer together during the early to mid part of the decade.

“The ultimate business skill is to recognise when you have gone as far as you can.”

Remaining packager bodies include the Regulatory Alliance of Mortgage Packagers which was formed in 2003 and the Association of Mortgage Packagers and Distributors which was formed in 2006.

John Rice, managing director of RAMP, says: “I’m afraid this development was to be expected in a rapidly contracting market.

“PMPA was indeed the blue print for the packager alliances and was held in high regard.

“At RAMP we have a slightly different model with heavy concentration upon regulatory issues but of course we are not immune to the market pressures.

He adds: “I wish the individual members of PMPA every success in very challenging times and I would certainly offer an olive branch to any of them who wish to remain within the relative safety of an alliance.”