ISCOVER
Carrington National will withdraw from third party distribution as the quality of its broker-originated loans deteriorates.
Gino Marra, Carrington National CEO, told Mortgage Business, the decision was the result of an assessment of the mortgage manager’s loan book arrears.
“We looked at our overall distribution model, including our arrears portfolio, and found that the majority of our arrears were coming from brokers, yet they only accounted for 60 per cent of our business,” he said.
But while Carrington National will cease its broker distribution, Mr Marra remains committed to the group’s white labelling business, Potentia Finance.
The sub-wholesaler currently funds around 16 originators and Mr Marra sees good potential for future growth.
“Our arrears with our mortgage originators were nowhere near as high,” he said.
Mr Marra confirmed that all broker trail commissions on existing loans would be honoured as per agreement following the official cut off date for new loans on 20th September.
Published: 16-09-08
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