Cummings says: “If current trends continue in the market an unfortunate byproduct would be a reduction in the number of mortgage intermediaries from a peak of 30,000 at the end of 2007 to a low of around 15,000 by the end of 2009.
“AMI is determined to do all we can to keep as many members in business as possible. Last year we ran a series of business diversification workshops.
“And we are about to announce our programme of events for this year that will focus on sales skills and protection business.”
He envisages that only 15-20 brokers of scale will be operating in the market post credit crunch, with only eight to 10 brokers of significant scale.
Cummings also predicts there will be only six lenders of scale operating in the broker market.
But on a positive note he says: “We do expect brokers to be responsible for 80% of lending in 2009.”
Cummings says there’s still demand for brokers and the current economic turmoil will lead to a flight to quality.