View more on these topics

Lenders and packagers agree deal on corrie definitions

A new forum involving the UK&#39s main correspondent lenders and packagers has established industry definitions for the first time in a bid to end confusion in the correspondent market.

The definitions were thrashed out at the meeting in London last week organised by mortgage funder National Guarantee involving the main players in the sector, including GMAC-RFC, Platform Home Loans, Preferred Mortgages and Solent Mortgage Services.

It decided “correspondent lending” will be the term used to describe a relationship between lenders and third parties, mainly packagers, where front-end administration, including completion, is outsourced to the third party.

To avoid confusion with “through lending”, this is defined as a relationship between two lenders where one organisation uses its capital to lend money to the borrower and then sells the loan onto another lender.

The forum is also discussing setting up one trade body covering the sector to gear up for FSA regulation of mortgages set to be introduced in the second quarter of 2004.

National Guarantee managing director Keith Robinson says: “Agreeing what actually constitutes a correspondent lender, and what doesn&#39t will be a major milestone for the industry. We can bring a greater understanding of the benefits of a correspondent programme to intermediaries and their clients.”

Recommended

&#39Life office leadership living in the past&#39

The life insurance industry&#39s standard-raising board chairman John Cox says corporate leadership in the industry lags behind other sectors by a decade as it considers extending its scheme to cover service standards to IFAs.The scheme is also considering expanding its scope to cover banks to take account of a probable enhanced role in distribution.Pensions Protection […]

Pru keeping faith in with-profits

Who will be the winners and losers in the with-profits bond market?It is a question that more and more IFAs are asking as some providers withdraw from the market.Prudential is completely committed to with-profits and within the with-profits bond market to IFAs.We intend to remain a leader in this market and are confident that with-profits […]

A plus from L&G

Legal & General has established protected portfolio plus, a capital protected Isa that is linked to 30 UK stocks for five years.This Isa follows on from the four previous products in the protected portfolio series, but is different in that it offers higher potential growth. Investors will get 120 per cent of the average growth […]

Brokers looking for more healthcare policy support

Healthcare intermediaries are not getting the support and services they require to promote healthcare policies, according to research from cash plan provider HealthSure.It says 70 per cent of brokers have been asked about healthcare insurance by clients over the last two years but only 30 per cent had sold cash plans.Many intermediaries say they need […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment