The Professional Mortgage Packagers Alliance is to have greater information sharing by members and other stakeholders, which will enhance its due diligence procedures.
Following a series of high profile packager failures within the sector, including membership of other packager groups, PMPA is actively working towards providing greater support
to its member firms and their brokers.
The packager alliance has reached agreement, by consensus with its member firms, for greater disclosure of internal financial information, in a move that has been designed to increase broker confidence to the benefit of all group members.
In particular, the new arrangement will allow PMPA to agree with panel lenders and valuers that they will flag up at an early stage any concerns they may have about individual members, including any signs that brokers are experiencing delays in the payment of their fees.
Helen Hymos, lender relationship manager of the PMPA, says: At the moment, the whole mortgage industry is suffering from a lack of confidence. The collapse of some packager businesses, often leaving their brokers owed large amounts of procuration fees, has had a negative effect on confidence and is potentially very harmful to the packager sector.
As the longest established packager association, we are delighted that PMPA members have agreed by democratic vote to a greater degree of transparency and information sharing. Together with the contingency that we have set up for the protection of broker payments and negotiations currently in hand to provide an insurance protection as well, we are confident that this new initiative is wholly positive.
“We believe it will enable us, as an organisation, to give our members and their introducers comfort that their procuration fees are protected, in so far as we are able to do so. This is crucial for everyone in the chain at the present time.
PMPA member packagers consist of Praxis, Platinum Lending, Mortgage Match Limited, Countrywide Mortgage Centre, Niche Mortgage Solutions, AToM, BDS, Complete, Finance and Mortgage Solutions, Knight Funding, Open Door Solutions, OPM, Premier Mortgage Centre, Premier Mortgage Packagers and Primrose Mortgage Processing.