MMR may sound death knell for packagers
The Association of Mortgage Intermediaries has warned the mortgage market review will be the death knell for mortgage packagers unless they radically restructure operations.
The FSA’s final MMR consultation published last month says lenders will be held responsible for verifying income and assessing affordability when the MMR is implemented.
AMI director Robert Sinclair (pictured) says: “One of the bigger questions is what happens to the packager community at the back end of this. The paper clearly sets out that the FSA wants people to be responsible for what they do.
“Do I think this is the final nail in the coffin? Clearly they are on notice that their shelf life will be limited unless they can convert to a different structure.”
Mortgage packager All Types of Mortgages managing director Dale Jannels, who estimates there are around 12-15 packagers currently operating in the market compared with around 80 before the crisis, says: “We have had to adapt since 2007 with everything that has been thrown at us. It may mean we will have to adapt to change but it will only be what we have been doing for the past four years.”