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Premier closes as Brain misses corporate target

Mortgage Brain has shut down packaging arm Premier Processing after 18 months after failing to generate enough business from corporate clients.

The company set up the packager to allow customers, including Royal Liver, to outsource their mortgage business and get help in establishing themselves in the market.

But Mortgage Brain director Mike Green admits the client base, which also included a number of unnamed mortgage networks, failed to submit enough cases for Premier to profit.

Mortgage Brain and then owners Nationwide, Halifax and Alliance & Leicester tried to turn round the packager&#39s decline last October with a new business plan.

But Green says by the start of the year it was clear that the plan was not working and made a joint decision with the lenders to close the business down.

Green blames the closure on Mortgage Brain overestimating the demand among its corporate customers for a company that would handle their mortgage cases as well as loan sourcing and consultation. He says Premier&#39s format also hindered Mortgage Brain&#39s ability to market it properly.

Green says: “It was a business that we thought there was a need for as part of our overall offering but there was very little take-up of it. It was simply an experiment that went wrong.”

Mortgageforce managing director Rob Clifford says: “When one of the market&#39s leading corporate players cannot make the packaging model work I think it demonstrates it is pretty shaky.”

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