Direct Mortgage Answers, a national packager based in East Anglia, has joined Network Data as an appointed principal.
Network Data has set out its stall as the network of choice for brokers in the UK market who opt for appointed representative status under the FSA regulations.
To accommodate packagers operating in the UK market, Network Data's offering enables them to carry on with their day-to-day activities without the overhead of developing and maintaining full network facilities.
The appointed principal solution is designed to maintain the packagers' existing business relationships with the brokers submitting mortgage business and to attract new ones.
Network Data says this is of paramount importance to packagers who otherwise face the danger of seeing mortgage brokers join other networks and stop placing business through the packagers.
This is against a background of IFAs, many of whom are appointed representatives of the IFA networks, being instructed to place their mortgage business through approved packagers only.
With over 7,000 brokers expected to becomes AR's of networks, it is essential that packagers are able to offer AR status to the brokers rather than lose their business altogether.
As part of the arrangement, Network Data provides packaging software, which provides electronic communications between the brokers and the packagers.
Richard Griffiths, managing director of Network Data, says: “We are pleased to attract a packager the size and calibre of DMA. It has an ambitious sales strategy and we are delighted to provide the regulatory framework and assist it in the recruitment of ARs who will continue to place business through DMA.
“The ongoing recruitment of packagers into the network also means we can provide adequate capacity for packaging mortgages for the growing number of ARs who are joining Network Data.”
Keith Hood, managing director of DMA, says: “By entering into this commercial arrangement with Network Data, we can focus on our core competencies of dealing with the broker market and packaging mortgages. We are very impressed with the professional approach of Network Data, the facilities they are able to provide, and their in-depth knowledge of the FSA regulations. Combine this expertise with our own in the packaging sector and it's a very powerful proposition for prospective ARs”.