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‘Packagers need to take on admin role to survive’

Packagers will have to start reinventing themselves to survive in a mortgage environment dominated by technology, says Alliance & Leicester head of intermediary mortgages Mehrdad Yousefi.

Packaging firms may have to combine administrative resources within their service packages in order for intermediaries to continue to see their continued benefits.

In an interview with Money Marketing, Yousefi says he believes that modern technology created by lenders has given intermediaries the power to give important details and answers online within minutes in a way that factors out the role of packagers.

Although he thinks that packagers still have a place within the mortgage process, he believes they must become “outsourced administrators” to add value. An intermediary would pay the outsourcer a monthly or annual fee for them to take care of administrative issues while the intermediary just needs to be concerned with advising clients.

A&L does not have a history of working with packagers as most of its lending is in the prime residential field.

Pure packagers managed to escape regulation and have come under fire for not providing a value-added service. The Professional Mortgage Packers’ Association would like to see the FSA reconsider packagers’ regulatory position.

Yousefi says: “My personal view is packagers need to be reinventing themselves. As administrators, they can be seen to be adding value and all the broker has to do is concentrate on selling.”

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