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BMS drops two packagers from list

BM Solutions has ceased to conduct business with packager network Exclusive Connections and packager Scottish Life Home Loans, Mortgage Strategy can exclusively reveal.

BMS made the decision to ditch Ex Con and Scot Life on Friday last week. Both Ex Con boss Patrick Day and Scot Life Home Loans managing director Steve Scholes were unavailable for comment.

Martin Reynolds, BMS&#39 key account manager, told Mortgage Strategy last Friday: “Today we serve notice to terminate packager agreements with Exclusive Connections and Scottish Life Home Loans.”

Reynolds refused to be drawn on reasons why the two were canned but sources point to the impending launch of BMS&#39 online operation and its desire to develop a more direct relationship with introducing brokers. The lender wants 20% of mortgage applications to be placed over the internet in 2003 and says it will pay brokers an extra £50 for each online submission.

One source adds: “With uncertainty over where packagers fit under the statutory regulatory regime, it appears that BMS believes that there is little or no role for the old-fashioned.”

Last year BMS launched its controversial &#39Seal of Approval&#39 for what it called reputable sub-prime packagers that it would deal with. The BMS criterion for being &#39reputable&#39 is not officially known. But critics point to a commitment and willingness to deliver regular high volumes of business in sub-prime.

Neither Ex Con nor Scot Life were on the list of 14 approved packagers for sub-prime but were among a further six packagers that supplied BMS with cases for its other lending areas, such as buy-to-let and self-cert.

The total number of packagers that BMS now deals with is just 18.

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