The Professional Mortgage Packagers Alliance is on the cusp of a major split that will see the four founder directors and their companies, All Types of Mortgages, BDS, Amity and Complete Mortgages, abandoned by the remaining 18.
The split comes in the wake of the creation of lender Unity Homeloans, which distributes its products exclusively through PMPA members.
Mortgage Strategy Online has learnt that dissent broke out in the ranks of PMPA because of the division of shares – Investec are 25% shareholders, the directors of Infinity hold a further 25%, and the remaining 50% is held by the PMPA.
However, within that 50%, it is thought that 30% is held by the four founding packagers, 2.5% by Jon OBrien, operations director at PMPA, and 17.5% between the 22 members including the four founders.
The members are reported to be unhappy about owning less that 1% of the shares of the lender, the creation of which they claim they werent consulted on.
It has also been claimed that the shares held by PMPA members are non-voting, something previously denied by Ravi Takhar, chairman of Infinity.
If true, this would mean that, without a direct stake in Unity Homeloans, the other PMPA members have no real power in the running of the lender and it is believed should Investec and the Infinity shareholders wish, they could be pushed out of the equation with little or no comeback.
The dissent caused by Unity Homeloans is said to be a symptom of deeper issues about the structure of PMPA.
It is now expected that PMPA will dissolve, with the 18 non-founding members re-grouping to form a new collective. A statement from the four directors of PMPA is expected later this week.
More to follow later.