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CML tells members not to be jacks of all trades

The Council of Mortgage Len ders is telling its members to specialise in areas where they excel rather than try to be a jack of all trades.

A CML report on future profitability in the mortgage market says applying new technology to specialist areas is the best way for lenders to respond to greater competition and consumer demands.

The report, by Andrew McLaughlin and David Fen ton, acknowledges the impact of an over-supply of mortgages to the market and identifies a number of key opportunities for lenders to adapt to these changes.

These opportunities inc lude lenders concentrating on their strongest area of expertise, for example, dealing dir ectly with customers and outsourcing other tasks such as the serving of loans.

The CML also says mortgage documentation, underwriting and servicing are likely to become more standardised and efficient through greater use of technology to process loans.

The report says the internet has potential for significant time and cost savings.

Deputy director general Peter Williams says: “More efficient administration and distribution as well as outsourcing, specialisation and the possibilities of the internet offer considerable potential for lenders to develop their businesses.

“The cost side of the ind-ustry may be the key to understanding future profitability. In this area, lenders have a number of important opportunities and choices which will help determine their future success.”

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