LETTERS
letters to the editor
mortgagestrategy welcomes readers’ letters intended for publication.
Letters should be sent to: The Editor, Mortgage Strategy, 50 Poland Street, London
W1F 7AX. Letters can also be emailed to mortgage.strategy@centaur.co.uk
16
✱ STAR LETTER
If the industry does not
want brokers, just tell us
As a former appointed representative of Network Data I am
writing out of anger and frustration at the debacle
surrounding the network and Mortgage Broking Solutions
Limited.
This is a mess that should never have been allowed to
happen. I am a broker in an estate agency and have, through
hard work, built up a decent pipeline of business considering
the economic climate, only to have it all wiped out by Network
Data.
Now Paymentshield has said it can transfer business if I
get a letter signed by all the
‘‘
How can I send
begging letters
for my customers
to sign so I
can continue
to be paid the
commission I
earned placing
their business?
customers I have worked with. But
how can I send begging letters to
my customers to sign so I can
continue to be paid the commission
I earned from placing their
business?
I am in the process of moving to
Sesame but this takes time. I had an
agreement to pass business to a
local brokerage but once again,
thanks to Network Data we lost
Trigold for sourcing which will
delay my ability to do this.
I am trying to see the positives
in a bad trading environment but
where is the Financial Services Authority in all this? The same
place it has always been since it all started with Northern
Rock. It is sitting in an office trying to put brokers out of
business because it is only concerned with its Treating
Customers Fairly initiative and ensuring intermediaries tick
the right boxes in the right places.
This fiasco is tied up in red tape set up by the FSA. If the
mortgage industry doesn’t want brokers, please just make an
announcement and get it over with so we know where we
stand. If it does want brokers, find a way of showing us.
MICHELLE LAWSON
MORTGAGE ADVISER
PROSPECT MONEY
BY EMAIL
Most ex-Network
Data ARs won’t
join First Affinity
Having read KISS Financial
Services’ David Tarry’s recent
endorsement of First Affinity I can
only assume that, as a former
Network Data appointed
representative, he is not owed a
substantial sum of money
(Mortgage Strategy May 18).
KISS was a top 20 producer for
Network Data and I have long
suspected that the top producers
did better than the rest when
it came to the payment of
commission.
After all, it would have been
embarrassing taking the company’s
top producers to Marrakech if
substantial commissions remained
unpaid.
While Network Data Limited’s
Alex Cotton may not have been
responsible for the demise of
Network Data I cannot believe that
as chief executive she was ignorant
of the network’s serious financial
situation.
The excuse she always gave for
the non-payment of commission
was systems problems. Clearly that
was not the case.
Are we to believe that she did
not attend meetings at which the
financial situation of Network Data
was discussed?
We should have been informed
last year of the financial problems,
probably at the same time First
Affinity was incorporated.
Now Cotton’s message is that
anyone who believes they are owed
money should take it up with
Network Data Holdings.
I can’t imagine too many former
www.mortgagestrategy.co.uk
Network Data ARs who are owed
commission signing up with First
Affinity.
JOHN REARDON
FORMER NETWORK DATA AR
BY EMAIL
Brokers must use
appropriate loan
sourcing systems
With more sourcing systems
coming onto the market claiming to
offer all things to all men I would
like to register my concern that
brokers may be putting themselves
and their clients at risk by using
loan sourcing systems not built
specifically with loans in mind.
When it comes to secured and
unsecured loans, affordability
calculations are different from
those in the mortgage sector.
Brokers should use sourcing
technology designed for the secured
loans market, not just adapted
mortgage sourcing systems which
will not be up to the job.
One of the biggest differences
is the way affordability is
calculated for secured loans. This
takes into consideration the true
monthly payments on loans.
Consequently, a change in the
repayment period affects monthly
payments and this could change the
choice of lender.
Also, each lender has different
plans which could mean that a
client could borrow £25,000 cheaper
than £23,000 over the same term.
Loan sourcing systems need to
clearly show these options to
advisers otherwise they could
unwittingly offer clients exactly
what they ask for without realising
MORTGAGE STRATEGY June 1, 2009
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