Last week's Regentsmead and NACFB seminar saw industry leaders debating whether brokers choose large fees over the right deals for their clients….
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div>Last week’s Regentsmead and NACFB seminar saw industry leaders debating whether brokers are choosing larger fees over the right deals for their clients.
Industry figureheads were locked in debate last week, over the ever present topic of whether brokers within this sector are choosing larger procuration fees over the right deals for their clients.
In an industry that may not have the same obligations as the mainstream sector, an argument was raised at the NACFB seminar last week, that brokers are getting away with choosing proc fees over deals that are right for the client.
The Q&A panel consisted of James Bloom, Chief Executive of Regentsmead, David Sampson, Operations Director at Omega Commercial Solutions, Norman Chambers, Deputy Chief of NACFB, Anthony McCourt, Current Borrower & Principle of Court Collaboration and Russell Martin, Chief Executive of Finance 4 Business.
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David Sampson kicked off the discussion, saying: “Our primary objective with every client is to try and arrange the best possible finance for them that meets their very specific needs.”
Norman Chambers stated that all NACFB broker members adhere to its strict code of conduct and act with the right attitude towards clients.
Norman admitted not all brokers work in the same light, stating: “…my personal view is that I think there are some brokers in there just for the fee, but what the association runs to is that we do have a strict code of practice, we are looking to encourage our members to operate in a professional way under the basis of just treating customers the right way.”
Speaking as one of the biggest distributors in the market, Russell Martin defended the work of honest brokers: “It’s our responsibility to look after [the client] as best we can. The only way we can do that is to take all the facts, figures, warts and all and let [the client] make an educated decision.”
David Sampson of Omega Commercial Solutions confirmed Omega only send a full pack regarding a deal to one lender.
David said Omega are able to do this through knowledge and experience, adding: “We are handling enquiries day in day out, week in week out - we know broadly what each lender will do [and] what the lending terms will be.”
The seminar, ‘How to maximise opportunities in the current development market’ which was held in Hamilton House in London, also honored the celebration of Regentsmead’s 80th anniversary,
The event invited people who could fire questions to the panel about the ever-growing development sector.
During the Q&A, Anthony McCourt was asked where he thought the property market was heading in the next 12 months.
Anthony said results showed a 12.8 per cent increase of residential development in London in the last quarter, adding: “I defy anyone to tell me that it isn’t a bubble – it is.”
James Bloom agreed with Anthony adding: “…when that [bubble] does end, then we will see who the lenders are and who the ones are who jumped on the bandwagon and perhaps didn’t prepare properly for a down term.”
The Q&A panel answering the brokers questions. (From left to right, David Sampson, Anthony McCourt, James Bloom, Norman Chambers and Russell Martin)
The Q&A then turned the discussion to High Street banks, with Norman Chambers stating that big banks are getting concerned with new funders coming into the market and attracting SMEs to alternative finance options.
Norman added: “We all know that the big banks have got very deep pockets and I think it’s only a matter of time before they come back in, in probably maybe a year to 18 months.”
The discussion ended with what many are calling one of the biggest issues facing the bridging and development finance sector, a formal qualification for bridging.
David argued there should be a qualification, a thought echoed by some of the trade bodies, but said it should be targeted at the entire financial industry.
Norman said he previously had all the big lenders discussing CCL licensed brokers and most of the room admitted they would probably deal with commercial brokers regardless.
Even though he encourages people to get the licenses, he stated: “In terms of getting everybody on board with that, it is quite a complex arena.”
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