From Peter Beaumont
During the past couple of months I have spent a great deal of time talking to packagers about impending regulation. Most of the larger packagers have well-defined strategies in place to take them up to Mortgage Day and beyond.
Smaller packagers, on the other hand, are not in such good shape and many seem quite happy to bury their heads in the sand and pretend regulation has nothing to do with them.
By the end of April the FSA had received 3,684 applications for direct mortgage authorisation – far less than it had anticipated. The mortgage market may therefore end up heavily biased toward appointed representatives, with as many as 70% of brokers taking that option. Such an outcome would pull the rug from under the feet of many small packagers.
Those who are not authorised and have no network relationship in place will find the number of brokers available to them dramatically cut. If packagers' sources of business dry up, they will go out of business.
Sales and marketing director