Professional Mortgage Packagers Alliance is launching an intermediary payment protection plan to provide guarantees for intermediaries procuration fees.
The plan is designed to provide a guarantee by PMPA that in the event of a member ceasing to trade, it will settle any outstanding procuration fees on completed packaged cases and which are due to FSA registered brokers.
The plan will cover all regulated and buy to let mortgage products and will be available to all PMPA members by July 1 this year.
PMPA operation director Jon O’Brien says: “This plan means our brokers and network partners can deal with us confident that their procuration fee payments will be met. Equally our lenders know they will not be placed in the position of having to pay procuration fees twice in the unlikely event that a packager fails to honour its obligations. We want our introducers to feel comfortable in the same way that they would, for example, if booking a holiday through a similarly protected travel agent. PIPP is designed to provide the same comfort levels for mortgage introducers at not cost using a PMPA packaging company.”