Following a strategic review and discussions with lenders, All Types of Mortgages is to move from the term packaging in favour of a new industry classification -wholesale mortgage design and distribution.
The new classification, which AToM expects a number of other major packagers to adopt, reflects the changing structure of the mortgage market and commences a number of strategic moves which AToM are to engage over the next few months.
AToM cites a number of key developments, which are changing the way lenders deal with the industry and the distribution models they will adopt in the future.
There is pressure on margins for plain vanilla products, strong house prices and increasing household indebtedness is changing the market.
Lenders, particularly new entrants with no legacy infrastructure, such as Unity HomeLoans, will increasingly focus solely on capital provision and risk management. They will therefore outsource the administration, design and distribution to wholesale providers who are closer to the market.
Electronic application submission and point of sale decisions will place increased responsibility on the wholesale distributor
The introduction of Automated Valuation Models and onsite underwriting will mean that the wholesale provider will be able to produce an immediate offer, stripping out a layer of administration.
Richard Hearn, managing director of AToM, says: The term packager no longer accurately reflects the business that we undertake.
Lenders are seeing their margins squeezed and there is an increased demand for product diversification. This means that those wholesale providers who have the expertise can provide a more effective service to both their lender partners and their brokers.
Our larger business relationships, such as those with PTFS, Sesame and Mortgage Intelligence demonstrate broker commitment to the wholesale market. Innovation, such as our recent rent-to-buy product through Rooftop, demonstrates lender support. AToM remains fully committed to the packaging market. We are actively seeking new satellite packagers as they provide genuine expertise in niche sectors as well as a wider distribution route to market.
As a wholesale provider we will often offer better rates and terms to the companies serving these niche markets.