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PMPA urges lenders to give more notice

The Professional Mortgage Packagers Alliance is calling for lenders to give more reasonable notice when withdrawing products.

PMPA enters the debate initiated by the recent open letter to intermediaries from John Malone, saying packagers need to be allowed sufficient time for pipeline business to be processed.

Helen Hymos, lender relationship manager at PMPA, says: “As it is, there is no time to halt marketing and promotional activities, meaning that cases could still be on sale to consumers even after the withdrawal has been made.

“We believe that this makes it virtually impossible for brokers to fulfil the principle of Treating Customers Fairly.”

She adds: “No notice withdrawals mean little or no time to process cases and the subsequent loss of business. It probably also leads to the loss of the brokers’ goodwill as many of them simply do not understand current market forces and therefore blame the packager.”

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