Lenders have been accused of mistreating packagers by operating a dual pricing system for direct-to-broker and packaged products.
Roger Morris, managing director of em-financial, told delegates that lenders have developed the practice of dual pricing because they don’t understand what packagers do and the value they add to the mortgage chain.
Morris also suggests that the practice might lead to lenders losing volume.
He says: “As a distributor I may reach a point where I have to choose between a lender that operates dual pricing and one that does not, to go on my panel. It’s more likely that I will choose the lender that doesn’t operate a policy of dual pricing.”