Industry Association folds

Industry Association folds




.

As of today, the Alliance of Mortgage Packagers and Distributors (AMPD) will cease to exist.

The AMPD announced the news today and cite the cause of their demise being due to ‘a reduced appetite to lend and lenders continuing to cut financial support due to the on-going challenging economic climate.’

The news comes as a surprise considering the association has weathered worse financial storms in the past, including the 2007-8 financial collapse.
Paul Brett of Borro Introducer said that he felt ‘deep sadness’ upon hearing AMPD had folded.

The AMPD was established in 2006 as a not-for-profit organisation aiming to bring together like-minded people to share business ideas and acumen, as well as enabling the group to negotiate exclusive products and increased opportunities.

From inception the AMPD has completed in excess of £8 billion in mortgage deals, but currently feels that in recent times it has struggled to add significant value to its members.

Mark Posniak, Head of Marketing and Operations at Dragonfly Property Finance, said: “It is always sad when an organisation like this folds. Liza [Director of AMPD] and the team worked very hard throughout the years and we wish her well. The members of AMPD however are strong enough to continue and we will continue to transact as normal.”

In a letter addressed to lenders who have worked with AMPD, Director Liza Campion stresses that its members continue to thrive in their own capacity and its closure is no reflection on the good work they continue to do. Currently the AMPD only has nine members.

She goes on to say: “I genuinely believe specialist packaging/distributing does add real value to lenders so there is a future for it. Unfortunately, the AMPD model works on a ‘mass market’ basis and is just not right for a smaller industry.”

This is a feeling echoed by Rob Jupp, Managing Director of Brightstar Financial, who said: “There is definitely a space for someone to come in and take their place. If no one fills their void it will be a big loss. It will be interesting to see what happens.”

Paul Brett, who ran a similar organisation which folded in 2007 amid the financial fallout, said: “They have probably done more lending in the last couple of months than the last few years. It is a shame their funding could not continue for another six months which may have allowed them to survive.”

With regards to the AMPD pipeline, the application cut off date should be with immediate effect and any completion pipeline commissions should continue to be paid to AMPD in the normal way.

 

Leave a comment