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Technology ‘to change packaging’
14 April 2007
Research by the Intermediary Mortgage Lenders Association (IMLA) has revealed that 70 per cent of brokers use packagers for part of their business.
Despite the high figure, it has been anticipated that technological developments could undermine the position of packagers. 53 per cent of the 300 brokers surveyed claimed technological enhancements by lenders would lead them to place more business direct with the lender.
When asked what enhancements packagers could implement, most commonly mentioned were related to improvements in on-line applications/facilities, processing and efficiency.
Godfrey Blight, director of IMLA, said: “Technology is a key differentiator in the future of our industry. Brokers say they are likely to do more business direct with lenders as technology enhancements are implemented, but they also expect to grow the business they direct through packagers over the next two years. While this may appear contradictory, the message is loud and clear: packagers must embrace technology.”
Elsewhere the survey showed that more than three quarters of intermediaries use packagers first and foremost for the support they offer in handling difficult cases. When asked what type of cases they tended to direct to packagers, 86 per cent indicated that they submitted non-conforming mortgages via packagers.
Kim Barrett, proprietor at KS Barrett & Associates, said: “As more lenders are now online I find technology is a bit faddish. Online processing is the same but that’s the way technology is headed and you have to keep up.”