DA firms ‘taken for granted’?
Alan Howle, spokesman for brokermosaic.com, said DAs needed to be treated better in the market. He called for the introduction of a mortgage club for DA firms and said: “If all it takes is for DA firms to get together and organise their own mortgage club for the benefit of its members, who then receive 100 per cent of the fee that lenders are willing to pay directly to the DA firm, then let’s get on with it.”
“Traditional mortgage clubs are getting rich on the back of DA brokers by receiving enhanced fees that lenders are happy to pay for your mortgage introductions,” he added.
However Robert Clifford, managing director at Mortgageforce, cast doubts on the actual objectives of the site. He said: “Is brokermosaic a bulletin board, a forum or a lobbying organisation? If it is a lobbying organisation it should leave it to the Association of Mortgage Intermediaries (AMI), which is doing a fantastic job for the mortgage industry.”
He added procuration fees were not the only reason for becoming a member of a network or mortgage club. He explained: “When firms are looking at networks or mortgage clubs, there is much more to be considered than just increased procuration fees, with distribution, exclusive offers and management all part of many clubs propositions, that lenders will not want to deal with. I can’t see the market taking much notice of this campaign.”