Swift is no longer accepting business from new brokers in the secured loan market, and instead will deal with what is thought to be 16 master brokers who will each have monthly quotas.
John Webster, chief executive officer, Swift, says: We have now reduced our intermediary panel to a small group of intermediaries. We have given them quotas because in this uncertain environment the only way you can make sure you are lending within your liquidity budget, is to put people on quotas. We wrote to our intermediaries and said sorry, we cant accept business from you, or invited them to be a pert of our panel.
Angel Trapasso, director at Magic Loans is one of the master brokers to be kept on Swifts panel and says the move is one that should work well.
He says: I think the move is a tentative approach to the market, they want brokers to know that they are still around in the marketplace, but only have a limited amount of funds. It has worked well for other lenders and should do for them.
Webster adds: We are confident that we will remain in the market, and the quotation system will be subject to variation, but I cannot see us changing our distribution strategy in 2008.