FR: What’s new at Vertex?
It’s tempting to try to talk about something other than MMR, but it is rightly dominating discussions across our industry. At Vertex, we are ready for it, but it is going to create a lot of work for everyone in our sector, and it will be a fascinating period.
FR: What are your predictions for the mortgage market in the next twelve months?
I’m feeling genuinely positive about the market over the next 12 months, but MMR brings with it a note of caution. If we did a SWOT analysis of the industry right now, MMR would sit most comfortably under the ‘threat’ category. Lenders must be aware of the operational and reputational risk that they run if they are not ready for MMR, and it goes without saying that they are running out of time to put things right.
There will be pressure on capacity and resource management, and we are already seeing an increase in enquiries from lenders looking for help with both pre- and post-completion servicing, after MMR has arrived.
Generally, though, the year ahead looks rosy for the industry thanks to the Help to Buy-fuelled boom, as long as lenders either get MMR right or enlist the help of outsourced firms who can get it right on their behalf.
FR: How do you see the role of outsourcing in a post-MMR market?
We believe outsourcing will have an increasingly important role. While nobody really knows exactly how MMR is going to pan out, some elements are clear. If you look at the RDR, it created a spike in the amount of reporting that is required, and I know MMR will follow this pattern.
Likewise, as with any new regulations, there will be increased scrutiny on who is managing to be compliant.
For many lenders, outsourcing will be seen as a viable option which will enable them to reduce their reporting burden and achieve compliance relatively easily.
FR: Do you predict any unintended consequences of MMR?
The one area that hasn’t really been addressed is how to manage a streamlined advice process for customers that really don’t need to sit down with an adviser for two hours, but who equally don’t want to resort to an execution-only transaction. People who work in the industry, for example, are likely to be very knowledgeable about products and what they can and can’t afford.
Is it really necessary for them to have to go through a fully-advised, post-MMR process? Probably not, but at the moment there does not appear to be a solution.
FR: What do you expect to be the consumer’s reaction to MMR when it comes into force?
Actually, with any luck, the customer ought not to notice. Let’s face it, the world isn’t going to grind to a halt on April 26th: lending will continue and to most people, the differences between the pre- and post-MMR markets will be negligible.
Some consumers might feel as if there is too much hand-holding going on, but in all likelihood, most will appreciate the lengths to which lenders are now going to, in order to ensure they are being given the right products for their needs.
FR: What part of the CEO role do you find the most challenging, and the most enjoyable?
I took over as CEO at a challenging time for the industry generally, but the buoyant housing market has helped make things slightly easier.
The challenge is probably the same as at any business at the moment. We are lucky to work for some amazing clients and we want to ensure we retain their custom. Furthermore, naturally, we are looking to grow and we see 2014 as being a promising year to achieve that growth.
Luckily, I have been with Vertex for some time now, I was previously Chief Information Officer, and I know what we are doing inside-out, so there was no bedding-in period. I also have some great people working around me and they’ve helped to make my transition as smooth as possible.
FR: What single piece of advice would you share with lenders?
MMR has the potential to be quite simple – if lenders stick to giving advice to those who need it, under the new rules, then they will be covered and compliant. If there are concerns or issues over resourcing, though, they don’t have much more time to address these, so it’s worth talking now to people now who can help meet the needs and the challenges of the next six months.
FR: What would you be doing if you weren’t in financial services?
Helping sell out arenas worldwide as the drummer in a rock band...
