The role of the mortgage club is changing
David Copland is director of TMA Mortgage Club
The role of the mortgage club is undoubtedly changing. At the heart of this change lies evolving compliance support and the challenging regulatory roadmap that characterises the mortgage market.
There is no debate that goes more hand in hand with these topics than the AR vs DA debate, as a light is shone on the pros and cons of each.
A number of factors – including different risk profiles and the regulatory support that’s provided – contribute to a broker’s decision as to whether they want directly authorised or appointed representative status.
With DA brokers being directly authorised by the FCA, they have total control of their business, the sales process, the IT infrastructure they adopt and the commercial terms with suppliers. On the other hand, for brokers who are less comfortable dealing with these issues including the regulatory demands, networks can offer an extra layer of protection for those looking to become ARs.
Over the past year, we’ve seen a number of regulatory changes in the mortgage market and I honestly don’t think the market has ever been more challenging. What with GDPR, PSD2 and the long-awaited feedback from the FCA on the Market Competition Review due this year, the industry will have a lot to review, amend and comply with.
Undoubtedly, the role of mortgage clubs is changing due to shifts in broker demands and market pressures. Experience sharing is vital in this fast-paced environment. Keeping brokers up-to-date on the latest industry trends and compliance obligations, as well as the latest lender updates and tech developments is vital if they are to remain competitive.
More than just providing bulletins, increasingly, brokers are looking to their clubs for a forum to share knowledge and a platform to discuss hot topics and issues with others working in the same space.
Another key consideration for brokers, is the need to give clients the best, most tailored experience possible. In many cases, this includes having the ability to discuss their potential protection, survey and GI needs, too.
At TMA our DAs have the benefit of belonging to a wider group – with LSL as a parent company, which owns two mortgage and protection networks. As a result, members of TMA benefit from the compliance infrastructure that has been built and are well placed to receive expert advice.
It has long been said that knowledge is power, and this is especially true in the mortgage market. DAs working in this sector already know the value of professional guidance and support – but should also remember that not all clubs are created equal.