Mortgage Strategy articles from June 2009

Mortgage Strategy archives from June 2009

COMMENT: Labour can't help us now.
June 8, 2009... Entertaining as recent political dramas have been, the worrying truth is that they distract the government from the all-important task of getting the economy back on track. There has been little in the way of announcements in the past...

LENDERS: Industry strikes back at Shelter sub-prime claim.
June 8, 2009... Industry pundits have hit back at a damning report by housing charity Shelter which accuses sub-prime lenders of failing in their duty to help struggling borrowers. Shelter commissioned YouGov to carry out a poll of sub-prime borrowers...

NETWORKS: Questions over network disclosure.
June 8, 2009... Network Data Holdings could have flouted Alternative Investment Market rules by failing to inform investors that it was trading insolvently. As a company listed on AIM Network Data was required to communicate any price-sensitive...

NETWORKS: Mortgage Times pledges to pay AR his commission.
June 8, 2009... Mortgage Times has promised to pay an appointed representative who has waited more than two months for commission on a protection case. Adam Lewis, principal of Stockport-based Insight Mortgage & Finance, had threatened to lodge a County...

BROKERS: John Charcol to revise salaries.
June 8, 2009... John Charcol is to chop the basic salary of its sales force but increase commission payments. Drew Wotherspoon, head of communications at John Charcol, says: "At the start of this year we introduced a benchmark system of remuneration...

STRAW POLL: Brokers hot on trail commission.
June 8, 2009... Only 25% of Mortgage Strategy Online readers think that mortgage brokers should not be paid trail commission on long-term fixed rate deals, with an overwhelming 75% in favour. A discussion paper from the Association of Mortgage...

APPOINTMENTS: Cornell joins First Action Finance.
June 8, 2009... Jonathan Cornell, former managing director of Hamptons Mortgages, has joined London-based IFA firm First Action Finance as head of communications. Cornell, who will work on a part-time basis in the role, says: "I will develop the profile...

SECURED LOANS: AFB rebuffs claims it is not filling FISA gap.
June 8, 2009... The Association of Finance Brokers has dismissed claims that it is failing to fill a void in the secured loans market after the withdrawal of the Finance Industry Standards Association. Richard Croll, BDM at Your Broker, says the secured...

REGULATION: Broker banned for ignoring FOS.
June 8, 2009... The Financial Services Authority has cancelled the permissions of a Kent-based mortgage broker after he failed to pay out for a complaint against him which was upheld by the Financial Ombudsman Service. George Albert Loscombe, trading as...

CONSULTING: Dring tries The Mad Approach with new firm.
June 8, 2009... Alan Dring, former sales and marketing director at Goldsmith Williams, has launched consultancy firm The Mad Approach. The venture is designed to help firms in the areas of strategic business planning, recruitment, training, debt...

LENDERS: Granite leads way in RMBS arrears climb.
June 8, 2009... Arrears in prime residential mortgage-backed securities continue to escalate, with Northern Rock's Granite master trust recording arrears of more than 90 days at almost 5%. Moody's latest investors' report details the increase in arrears...

Opportunity knocks if equity release advisers market themselves better.
June 8, 2009... Equity release advisers are crucial to the sector but they should be marketing themselves more effectively if they want to capitalise on opportunities. Hodge Lifetime says brokers account for an increasing proportion of equity release...

Paymentshield simplifies transfer of ex-Network Data AR business.
June 8, 2009... Paymentshield has simplified its procedure for former Network Data appointed representatives looking to transfer Paymentshield customers to their new networks. The company told Mortgage Strategy last month that it intended to honour all...

PROTECTION: Roadshows will teach brokers how to sell IP.
June 8, 2009... The Income Protection Task Force will be holding a series of roadshows later in the year to educate brokers about the benefits of offering clients IP. The move follows research from Swiss Re that reveals there was a 13.5% increase in IP...

PROTECTION: Spiralling unemployment puts MPPI model under pressure.
June 8, 2009... Assurant Intermediary has warned that mortgage payment protection insurance is not designed to cope with the rising level of unemployment in the country. Nigel Payne, managing director of Assurant Intermediary, says it is likely that...

PROTECTION: Regulation must be specific to sectors, says ABI.
June 8, 2009... The Association of British Insurers is calling for the insurance sector not to be tarred with the same brush as the rest of the financial services industry. In a report entitled Restoring Market Confidence published ahead of its...

PROTECTION: Providers hike PPI premiums.
June 8, 2009... Which? has found that although most providers have stopped offering single premium payment protection insurance, many have increased their regular premium policies to compensate. It says that at the insistence of the Financial Services...

AMI claims victory for brokers as FSA slashes fee increase to 2.7%.
June 8, 2009... The Association of Mortgage Intermediaries claimed a victory for brokers last week after the Financial Services Authority bowed to pressure and lowered its regulatory fee increase for the sector. Broker fees were set to go up by 21.2% for...

LENDING: House purchase approvals rise.
June 8, 2009... The number of mortgage approvals for house purchase in April hit 43,201 - an increase on both March's figure and the previous six-month average. The Bank of England's lending to individuals statistics show approvals for purchases rose...

PRODUCTS: Large loan five-year trackers on offer.
June 8, 2009... Largemortgageloans.com has launched two five-year tracker deals to cater for loans between #500,000 and #1m. The private bank products are available via Trigold Prospector and are on offer exclusively to PMS members. The move echoes...

IN BRIEF: Month-on-month society lending down in April.(Brief article)
June 8, 2009... Gross mortgage lending by building societies was #1.55bn in April 2009 compared with #1.57bn in March and #3.9bn in April 2008, says the Building Societies Association. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: L&G club unveils two fixed rate exclusives.(Brief article)
June 8, 2009... Legal & General Mortgage Club is launching two exclusive three-year fixed rates through Platform. The products are available to appointed representatives of L&G Partnership Services. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Confidence in housing highest since 2007.(Brief article)
June 8, 2009... Public confidence in the housing market is higher than at any point since September 2007 and the bailout of Northern Rock, Propertyfinder.com's May survey shows. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: A&L changes rates on four-year broker fixes.(Brief article)
June 8, 2009... Alliance & Leicester for Intermediaries has changed the rates on some of its four-year fixed deals. It has cut the rate on its four-year fix for core and remortgage business to 4.59% but hiked the fee to #995. Copyright: Centaur...

ANALYSIS: Marketwatch - 08.06.09.
June 8, 2009... With many banks not hitting their direct lending targets but withholding funds from brokers, it's outrageous that they are telling the Treasury there's no demand Swaps are steadily increasing and longer term swaps went up substantially...

ANALYSIS: It's time for higher rent-back standards.
June 8, 2009... When the Office of Fair Trading took a look at the sale-and-rent-back market last year it concluded that some 50,000 households had undertaken such transactions during the previous two years. This not only confirms the size of the market...

ANALYSIS: How IT can boost protection sales.
June 8, 2009... The bank holiday-filled month of May was mainly sunny but ended overcast as reports of record low mortgage lending surfaced. Now is the time to buffer your income and make the most of protection sales. Providers have jumped on the...

ANALYSIS: SAFER must cast its net more widely.
June 8, 2009... Let me start by apologising to Specialist Advisers For Equity Release. The comments I made in my last column were not meant to be dismissive. I was a little confused because information about the association was not readily to hand and...

ANALYSIS: Positive signs but times are still hard.
June 8, 2009... There has been a mixed bag of economic data in the past month but information relating to the housing market suggests tentative signs of stabilisation, albeit at a low level. According to Halifax, house prices fell by 1.7% in April,...

ANALYSIS: Independent advice is best for clients.
June 8, 2009... It's hard to find a silver lining to the cloud of the past 18 months but one thing is apparent - everyone is working smarter, with the exception of lenders. But even their decision-making is slowly improving despite the double and...

ANALYSIS: Broker-bashing will hold back recovery.
June 8, 2009... Broker-bashing is doing nothing to help the market. The recent attack by the Council of Mortgage Lenders on brokers' attitude to fraud, combined with the MPs' expenses debacle and rising unemployment, did not help consumer confidence. ...

ANALYSIS: Regulator rewards itself for failure.
June 8, 2009... The Freedom of Information Act has not only opened a window on how our political lords and masters fiddle their expenses and seemingly commit fraud, it has also shone a torch of truth on how the Financial Services Authority squanders our...

ANALYSIS: Simplicity may be best with CI cover.
June 8, 2009... Buying coffee used to be so simple. The only decision to be made was - black or white? But now we are faced with an overwhelming choice - espresso, cappuccino, americano, decaf, skinny... it goes on. At one time only upmarket cafes would...

ANALYSIS: RMBS arrears hike is to be expected.
June 8, 2009... Reports that prime residential mortgage-backed securities have seen a jump in arrears should come as no surprise. Three factors are causing this deterioration, none of which will go away soon. First, unemployment is rising and will...

ANALYSIS: Borrowers pay up for peace of mind.
June 8, 2009... Several broker groups have recently commented that their members have seen a significant increase in the proportion of fixed rate deals being sold. And Council of Mortgage Lenders data on fixed and variable rate lending for house...

ANALYSIS: Let's rid our sector of bad practices.
June 8, 2009... We should no longer tolerate those in the equity release sector who continue to transact business using 'back of a fag packet' processes. There is no excuse for believing that equity release business is easy - it's only easy if brokers...

ANALYSIS: It's sad to lose our high street brands.
June 8, 2009... I guess it's an age-related thing but I wonder how many readers felt a twinge of sadness at the news that the Abbey brand - along with Bradford & Bingley and Alliance & Leicester - is scheduled for termination. I'll miss them all. They...

LETTER: Lenders don't understand low-cost housing sector.(Letter to the editor)
June 8, 2009... I feel compelled to write a response to a recent article (Mortgage Strategy May 25) that included claims that brokers are standing in the way of shared ownership schemes being a success. The truth is that without the input of specialist...

LETTER: Setting the record straight on B2L sourcing systems.(Letter to the editor)
June 8, 2009... I'd like to set the record straight with regard to the letter from Chloe Taverner, marketing manager at The Business Mortgage Company, headlined 'eMoneyfacts' B2L calculator claims are misleading' (Mortgage Strategy May 18). At no stage...

LETTER: Openwork's support for ex-Network Data ARs has been great.(Letter to the editor)
June 8, 2009... I was an appointed representative of Network Data and am one of those who has now moved with First Affinity to Openwork. Network Data owed me a considerable amount of money and I know, contrary to the assertion in John Reardon's recent...

LETTER: Woolwich's tactic to muscle brokers out is a disgrace.(Letter to the editor)
June 8, 2009... I'm sure I'm not the only broker who is frustrated with Woolwich's fund booking line. I have been trying to book funds for four cases since May 11 and have found it impossible. One of these clients eventually rang his local Barclays...

LETTER: It's easy to criticise brokers if you live in an ivory tower.(Letter to the editor)
June 8, 2009... If Forrest Gump's phrase 'stupid is as stupid does' means we should judge people by what they do rather than how they appear, I can think of a bunch of financial services institutions that appear knowledgeable and respectable but, judging by...

LETTER: Firms should have the right to appeal against judgements.(Letter to the editor)
June 8, 2009... I have no idea of the circumstances surrounding the FSA banning a broker for failing to pay a Financial Ombudsman Service charge (Mortgage Strategy Online June 2) but the decision would surely carry more legitimacy if the broker had been...

LETTER: We are still owed commission by banks and insurers.(Letter to the editor)
June 8, 2009... The news that former Network Data ARs are owed some #2m (Mortgage Strategy Online June 2) is interesting, but what is the FSA going to do about the commission owed to us by banks and insurers? My firm has around #20,000 in pipeline...

TRADE BODIES: Sense of direction.
June 8, 2009... Industry trade bodies claim they are standing up for their sectors' interests but we ask their members if they are getting enough help in navigating the rocky road of recession Mahatma Gandhi once said that "unity, to be real, must stand...

TRADE BODIES: AMI: FSA fees battle was a win for brokers.
June 8, 2009... Recent months have been busy for the Association of Mortgage Intermediaries, mobilising our membership to respond to the FSA's fee proposals. This campaign generated a huge response and was followed up with a series of meetings with the...

TRADE BODIES: BSA: boosting efficiency in the sector.
June 8, 2009... The Building Societies Association is the trade association for the UK's 53 building societies, which hold assets of more than #395bn in total. Societies account for around 20% of the mortgage and savings markets and the BSA promotes the...

TRADE BODIES: CML: A voice for all types of lenders.
June 8, 2009... The Council of Mortgage Lenders is the only representative voice for all types of mortgage lenders. We work on behalf of a membership comprised of banks, building societies and other lenders that undertake around 98% of this country's...

TRADE BODIES: IMLA: challenging view mortgage can be funded by deposits.
June 8, 2009... The credit crunch has been a testing time for lenders and their trade bodies. In some senses the action has focussed on lenders themselves and particularly those that have left the market either temporarily or permanently. For obvious...

TRADE BODIES: SHIP: doing more promotional work for less cost.
June 8, 2009... The credit crunch has made Safe Home Income Plans' role more important than ever for members. The downturn has seen the average savings income of older people shrink by 25%. With many looking for alternative income streams it is more...

COMMENT: First-timers face a steep climb to home ownership.
June 8, 2009... We thought buying a home was tough in our day but that was nothing compared with what our kids face I got married 25 years ago last week. Back then, Margaret Thatcher was in Number 10, Wham's Wake Me Up Before You Go-Go was number one in...

COMMENT: Property shows on TV need a dose of reality.
June 8, 2009... Property programmes should skip the ancient and obvious advice they dole out and try to offer sellers more useful tips Recently I've been feeling the pressure a bit, what with the MPs' expenses scandal and Susan Boyle holidaying at the...

COMMENT: Handle with care should be mantra for arrears clients.
June 8, 2009... Lenders need to empathise with clients in trouble and understand their psychology so staff training is crucial Mortgage arrears and repossessions are at the top of everyone's agenda at the moment. The government, the regulator,...

COMMENT: Ensure you are prepared when the time comes.
June 8, 2009... Firms that remain alert to opportunities will be in best shape when the hands of the economic clock turn In downturns there are always winners and losers and while this recession has been severe, it should be remembered that it will end...

COMMENT: Brokers must find strength in diversity.
June 8, 2009... Brokers are having a torrid time but they can learn from the example of Britain's Got Talent winner Diversity First, I would like to congratulate the group of talented youngsters who managed to beat the odds-on favourite to emerge...

COMMENT: Play your way to regulatory understanding.
June 8, 2009... By cultivating a gaming mentality, immersive learning can provide worthwhile business training solutions As students around the country sit their examinations I am reminded of the many exams I have had to sit in my school days and working...

COMMENT: Beware the charms of a false dawn.
June 8, 2009... You could be forgiven for thinking that the cloud of depression hanging over the housing market is lifting, given the wave of positive news recently. Don't get me wrong, I think it's about time we had some good news after so many months...

COMMENT: Regulator makes a bonus exception - itself.
June 8, 2009... With stunning irony, the Financial Services Authority has confirmed it recently paid bonuses of nearly #20m to its staff compared with just over #13m last year. Aside from the regulator's blatant disregard for the poor timing of this...

COMMENT: House rules.
June 8, 2009... We've all seen the revelations about MPs' expenses but what is most worrying is that some bought houses with mortgages funded by taxpayers then sold them at a profit, often paying little or no Capital Gains Tax. I have no problem with...

COMMENT: Lenders and brokers must grow as one.
June 8, 2009... Traditionally, one of the best things about the intermediary market was its flexibility to expand to meet demand from hungry consumers and market share from hungry lenders. The attitude was - #1bn more lending? Don't worry, we'll hire...

COMMENT: But first, let the battle of words begin.
June 8, 2009... My old friend Danny Lovey has never been one to shy away from the limelight - he even suggested a solution to the liquidity crisis 18 months ago. But now it seems the comments attributed to Michael Coogan, director- general of the Council...

60 seconds with David Whittaker.
June 8, 2009... David Whittaker Managing director Mortgages for Business Your outlook on property price movements is more down-to-earth than most. Why is that? There's always conflicting data but we take a pragmatic view based on what our clients...

COMMENT: Staying afloat in the storm.
June 15, 2009... It was good to see last week's last-minute survival bid from West Bromwich succeed. Speculation had been mounting about the beleaguered society, with many in the industry predicting it would become the next Dunfermline. But despite...

NETWORKS: Openwork will focus on service after Citri move.
June 15, 2009... Openwork has not ruled out future acquisitions but says its focus is on servicing its existing advisers after signing up its latest recruit on Friday - Newcastle-based Citri. The directly authorised firm is bringing its 250 mortgage...

BUILDING SOCIETIES: Saved West Brom reveals big losses.
June 15, 2009... West Bromwich revealed a pre-tax loss of #48.8m last week but remained tight-lipped about how its mortgage broking subsidiary Mortgageforce had performed. The mutual was saved at the 11th hour after negotiating a deal with its creditors...

FIRST-TIME BUYERS: More first-timers are providing deposits of 20%.
June 15, 2009... Mortgages.co.uk has revealed that it has seen a 50% increase in the number of first-time buyers applying for mortgages with a 20% deposit in the past six months. The financial website says that despite the decline in the number of high...

LENDERS: Checkmate stalls authorisation bid.
June 15, 2009... The Financial Services Authority has advised Checkmate Mortgages to hold fire on applying for authorisation until it has secured funding. The firm, which is owned by GMAC-RFC founder Stephen Knight, intends to launch as a lender once it...

CREDIT RATINGS: Lenders' calculations can exaggerate arrears.
June 15, 2009... Borrowers are seeing their credit ratings suffer as a result of lenders failing to accommodate falling mortgage rates when calculating how severely borrowers are in arrears. This backs up analysis from Standards & Poor's last week that...

MORTGAGES: More borrowers in negative equity than figures suggest.
June 15, 2009... The Bank of England says it is concerned that more borrowers could be in negative equity than in the mid-90s. There is no accurate data to definitely say what the actual number of homeowners in negative equity is. But last week it...

STRAW POLL: Sub-prime clients should be helped.
June 15, 2009... A whopping 78% of Mortgage Strategy Online readers say sub-prime lenders should do more to help struggling borrowers. A report from charity Shelter accuses sub-prime lenders of failing in their duty to help cash-strapped borrowers in the...

BUILDING SOCIETIES: Downgrade hit Astra funding.
June 15, 2009... Norwich and Peterborough last week said the recent Moody's downgrade of the mutual was partly behind its decision to mothball specialist lending brand Astra. As a result of the move 14 staff have been placed in consultation. At the...

Brokers support call for FSA and ratings agencies to face the music.
June 15, 2009... Brokers have rallied behind MP John Gummer after he laid the blame for the credit crisis at the Financial Services Authority's door. Speaking at the Association of Mortgage Intermediaries' annual dinner last week, Gummer, the trade body's...

CHARITY: Firms raise cash for school minibus.
June 15, 2009... Hertfordshire-based estate agency and brokerage Kings Group and network Openwork have raised the funds to buy a bus to help visually impaired kids get to school. Kings Group has a long history of raising money for a range of charities...

LENDERS: Lenders offer golden goodbyes to prompt borrowers to move on.
June 15, 2009... Morgan Stanley and GMAC-RFC were last week revealed to be offering borrowers 15% to 20% golden goodbyes in an attempt to get them to remortgage elsewhere. Sources have told Mortgage Strategy that two large specialist lenders - one of...

MPPI: MPPI firms are warned the FSA has its eye on them.
June 15, 2009... Mortgage payment protection insurance providers have been warned they risk incurring the wrath of the Financial Services Authority if they fail to treat their customers fairly. Speaking at the Association of British Insurers' annual...

IN BRIEF: Property code body suspends HIP firm.(Brief article)
June 15, 2009... The Property Codes Compliance Board has suspended Home Information Pack Code subscriber Apollo Surveys after it failed to meet the board's requirements. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Mortgage requests for Turkish homes rocket.(Brief article)
June 15, 2009... Overseas property specialist Conti saw mortgage applications for Turkish properties rise 65% in the first five months of this year compared with the last five of 2008. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Corrie star helps man get debt written off.(Brief article)
June 15, 2009... Coronation Street star Michael Le Vell, who is also a director at claims management firm Ratio Money, has helped a Wetherby man to get #15,000 of credit card debt written off. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Ex-Praxis directors to launch claims firm.(Brief article)
June 15, 2009... Former directors of Birmingham-based mortgage packager Praxis, Nick and Richard Stettner, are set to launch claims management company Claims Master. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: CML publishes guidance on buy-to-let arrears.(Brief article)
June 15, 2009... The Council of Mortgage Lenders is publishing guidance to reinforce the message that lenders should act fairly when dealing with buy-to-let arrears. Copyright: Centaur Communications Ltd. and licensors

FRAUD: Regulator bans another broker for fraud as fines hit record high.
June 15, 2009... The Financial Services Authority banned another broker for fraud last week, as figures revealed the regulator has dished out a record 55 fines in the past year. Data from City law firm Reynolds Porter Chamberlain shows the FSA also...

Advisers warned to switch clients to fixed rate deals while they can.
June 15, 2009... Two brokerages last week predicted that fixed rates could be set to increase and warned advisers to act quickly to help clients secure cheap deals. Ray Boulger, senior technical manager at John Charcol, led the forecasters, saying the...

IN BRIEF: Orbiter facility allows users to rate lenders.(Brief article)
June 15, 2009... Orbiter has added a facility by which users can rate lenders' service levels on a scale of one to five. Ratings will be collated and the average listed alongside lenders' names. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Mortgage rates increase despite base rate freeze.(Brief article)
June 15, 2009... Product providers are increasing average mortgage rates despite the latest Bank base rate hold, according to Moneysupermarket.com, which adds the Bank is toothless when it comes to regulating the cost of mortgages. Copyright: Centaur...