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Genesis warns brokers to get truth from networks

To help brokers separate financial fact from fiction, Genesis is providing a free revenue planning service which will be based on a brokers precise volume and mix of mortgage business.

John Lee, head of sales and marketing at Genesis says: “What matters with network charges is the net income brokers actually receive. That means not only looking at headline charges but also procuration fees payable, in order to understand the net amount which a broker will actually retain at the end of the day. Ironically, it‚s no different to analysing the true cost of a mortgage.

“Any broker who would like to see precisely how much net income they will earn by joining either Genesis or any other network, can do so by phoning us and booking a free profit planning meeting. We use published data from networks to give brokers a precise fix on how much net income they can expect to earn during the year ahead.”

Genesis believes that some brokers, who have left network membership until the last minute, are basing decisions purely on the headline membership charges published by networks and do not fully understand the impact that not comparing procuration fees could have on their

earnings.

Lee says: “This is a classic case of decide in haste, repent at leisure. Our profit projection for a typical broker producing ten mortgage cases a month, a mix of prime, niche and sub-prime, shows that the difference in net income paid by different networks can be as much as £20,000

a year. Brokers should therefore check out costs very carefully before making any decisions.”

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