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Loan clubs hit out at Imla on quality claims

Mortgage clubs have hit back at the Intermediary Mortgage Lenders Association for releasing a survey suggesting that appointed representatives originate better quality loans than directly authorised brokers.

The survey found that two-thirds of Imla members say that appointed representatives produced a higher credit quality of business on a consistent basis than directly authorised brokers.

Imla chief executive Peter Williams says: “Directly authorised brokers can compete with appointed representatives but they must make every effort to deliver consistently good quality business. Doing detailed fact-finds with customers and ensuring they are matched with the most appropriate product will both satisfy treating customers fairly principles and should improve the quality of business brokers can offer lenders.”

But PMS managing director John Malone says it is inappropriate to release surveys that attack sections of the intermediary sector.

He says: “Of our members, 65 per cent are DA and many of them are established businesses with long-standing clients who have been regulated long before M-Day. This survey does not accurately reflect the DA sector.”

The Mortgage Alliance head Phil Whitehouse says: “No lender has ever knocked on my door to complain about the quality of our DA advice. I have difficulty squaring this data with the conversations I have had with lenders over the last 15 months.”

Both Malone and Whitehouse have challenged Imla to provide more detail on which lenders took part in the survey and how they reached the conclusion over the differing quality of business submitted by advisers as they say that when they have asked lenders for this in the past it was not forthcoming.

Malone says: “We would suggest that Imla review this research and speak to more lenders who we know did not commit to the survey.”

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