Accord Mortgages managing director Linda Will says the increasing number of lenders securitising business is stifling innovation in the market.She says that more lenders are designing products to suit a future portfolio sale rather than for the benefit of the consumer and the market. Her comments come after US giant Wachovia revealed last month that it is looking at moving into UK lending. Alliance & Leicester’s push into the non-conforming market is based on selling loans to Lehman Brothers on completion while BM Solutions says it is considering securitising a small proportion of the mortgages it sells in future. Will says: “If the model is to get rid of business, then innovation will become lost. You are originating products to sell on and that is a huge risk for the market. “We recently recruited a product development manager from a lender which securitises as they wanted to work for a balance-sheet lender.” Hamptons International Mortgages managing director Kevin Duffy says: “Any securitising lender has to design products for the needs of the buyer and if those requirements are straitjacketed and have strict pricing and definitions, then it will suppress innovation.” Will says she is also concerned that non-regulated mortgages that are retained by a lender after an introductory period do not have to be treated as regulated which she claims is confusing brokers and customers because of the different disclosure requirements. Accord will now treat all retained business as regulated.
Chancellor Gordon Brown has had an interesting couple of weeks. No doubt, a Channel 4 programme by Ros Altmann attacking his pension record has caused him irritation but it is perhaps not his main focus as he tries to secure the succession to the Premiership.
The newly launched Platform Committee says developing a standard for re-registra- tion between platforms is its top priority. The committee was set up last week by Cofunds, Funds Network, Skandia, Selestia and Standard Life and will have input from the Investment Management Association. At a Money Marketing wrap round table last week, Funds Network executive […]
There has long been talk regarding an income protection/PA & sickness plan hybrid. Now, finally, one has been launched by British Insurance under the name Safetyfirst. In truth, the plan is an amalgam because the initial 52 weeks’ payments are under- written by Hitachi Capital Insurance Europe, with the Original Holloway Friendly Society underwriting after […]
M&G is planning to cut its UK equity fund range from six to four to remove overlap between portfolios. Subject to shareholder approval, it will merge the Tom Dobell-managed £399m British opportunities fund into the recovery fund, also run by Dobell, creating a £2.1bn giant. M&G is looking to merge the UK growth and UK […]
The continuing fall-out from the Competition and Markets Authority’s (CMA’s) review, the rise of the private GP and digital engagement will be the primary focuses in the private healthcare industry during 2015, according to Iain Laws, managing director, healthcare and group risk, at Jelf Employee Benefits.
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