For packager groups, the ability to maintain lasting and genuine two-way partnerships will be essential as we move forward. The ability for a group to deal with a lender in its entirety is and will continue to be quite a challenge. Let us face it, the statement that “it’s not love it’s business” couldn’t be more true and, I am sure, for some lenders it is a “needs must”. At the moment I am inundated with lenders that now want to deal with packagers. This is obviously music to my ears but it has to be said I often doubt the long-term motives of lenders who are late in coming to the ‘packager party’.
But with lenders such as Mortgages PLC and many of the openly packager friendly ” The charter is only a set of words on a formal document but it is long-term thinking in an often short-term thinking environment”lenders, we have enjoyed – and will continue to enjoy – a real partnership when doing business together. We have, over the past four months, been progressing and evolving our Premier Lender Partner programme. This is an Association of Mortgage Packagers and Distributors charter that clearly sets out our commitments to the lender and, in return, lists the agreed commitments from the lender to AMPD.
While the charter is only a sete of words on a formal document it does begin the process of ensuring we are working with lenders that genuinely support us – and us them. It is long-term thinking in an often short-term thinking environment. Lenders that are serious about their continued packager support will find a serious partner in AMPD.
Whatever the status of partnerships moving forward, AMPD has embraced IT solutions that will ensure, when we trade with our lender partners, we trade on a fully electronic platform that will bring considerable savings to both sides. These savings will be put back into the product to ensure we continue to offer our broker customers the keenest products and pricing that we can negotiate with our chosen lender partners.
The inevitable journey to a complete electronic trading solution which will cut costs for all parties is clearly in the spotlight. Many lenders look to use electronic solutions to obtain direct business and I am sure we will see more of them adopting this tactic. As I have said before, AMPD will not deal with lenders that have a direct channel that clearly offers cost and criteria advantages for brokers going direct. edeus had a dual pricing policy and AMPD felt we could not support that lender. Clearly (or should I say Cleary), that barrier is now removed and I am looking forward to AMPD supporting edeus in the future.
To sum up I feel ‘switched on lenders’ are fully aware of the valuable and considerable distribution we control. The challenge is to genuinely embrace long-lasting relationships with our chosen lenders. Doing is harder than saying but AMPD is well along the road.