Top business development managers at mortgage securitisation lenders will be “sitting targets” for balance-sheet lenders if the current market conditions continue, says John Charcol senior technical manager Ray Boulger.
He warns that many securitisation lenders are increasing rates and changing criteria to deter business after the fallout from the US sub-prime crash and their business development managers could become disheartened by being unable to sell business proactively.
Boulger says: “If this situation prevails, what are BDMs going to be able to do if they aren’t allowed to sell? Good BDMs are in short supply so they will be an obvious target for lenders wanting to strengthen their intermediary process.”
He says BDMs at securitisation lenders will be concerned about their bonus structures if they are not able to earn commission and the lenders will also be concerned about maintaining big salesforces.
He points to the newly merged Nationwide and Portman building societies as a balance-sheet lender which might swoop for rivals’ BDMs.
Nationwide non-retail executive director Matthew Wyles says: “We have announced that following the merger between Nationwide and Portman we will be establishing a brand new salesforce for Nationwide. We would welcome any applications from business development managers at lenders that are experiencing difficulties in the current climate.”