Satellite packaging on the increase
The Professional Mortgage Packagers Alliance (PMPA) member said it was making the move as a way of growing its business, with satellites packaging mortgage cases on behalf of KGB.
Rachel Bancroft, managing director of KGB Packaging, said becoming a satellite had many benefits for smaller packagers, including being able to compete against the bigger firms in the market. She explained: “The big challenge for small packagers is to grow large enough to be able to carry some weight with lenders. Lenders are already starting to restrict their panels to a limited number of larger packagers, and this trend will continue. One way smaller packagers can start to grow is by undertaking satellite packaging.”
KGB said that satellite packagers would benefit from access to exclusive products available to PMPA members and KGB’s on-site underwriters as well as earn additional fees from undertaking satellite business.
It is a structure other PMPA members have adopted and KGB is looking to recruit six firms initially.
Bancroft added: “It is a fairly common practice which other packagers have adopted and it has worked well for them so hopefully it will work for us too.”
Doug Hall, sales director at Mortgage Choice, commented: “As long as the lead packager has the infrastructure in terms of technology and lender on-site underwriting then it can only be a good thing. From a packager’s point of view, you have got to have something different that sets you apart from the other packagers in that area.
“There are packagers and intermediaries out there who would like to undertake satellite work but it depends on what they are looking to do. It is okay for the lead packager to offer satellite opportunities but they have got to offer what the satellites need in terms of service and support.”