Brokers urged to keep eye on HIPs distribution
Tony Jones, managing director of Pink Home Loans, explained how he expected to see the government’s proposals to introduce compulsory HIPs pushed back from the original timescale of early 2007 to late in the second quarter of 2007.
Jones said: “There are still lots of unanswered questions regarding HIPs but it is important for intermediaries not to lose sight of future implications and they must be careful not to lose distribution initiatives. According to cold-calling regulations brokers are supposed to call on contacts once a year and historically they have not been great at managing client banks but this is a necessity in today’s market, especially regarding HIPs.”
Andy Frankish, managing director of Mortgage Talk, commented: “There is no question the issue of HIPs could put the squeeze on intermediary business and it’s vital for brokers to be ahead of the game. We are currently busy re-evaluating sales processes.
“The introduction may seem like it’s some time away but the industry evolves so quickly and we need to keep our fingers on the pulse and be prepared. Client relationships will prove an important element.”
Richard Sexton, business development manager at chartered surveyors e.surv, said: “I believe we will see an increase in intermediary affiliations with estate agents or specialist companies distributing HIPs, of which we will see an increasing number. It is an area that intermediaries can ill afford to ignore.”
Michael Coogan, director-general of the Council of Mortgage Lenders (CML), said: “There are opportunities for those who are already making preparations for the introduction but intermediaries who aren’t could suffer somewhat.”