Weathering change in the UK mortgage market by niusheng11



CML annual conference and exhibition preview

 After the storm

   Weathering change in the
    UK mortgage market
                                                               Sponsored by

         Tuesday 2nd December 2008, Old Billingsgate, London
You’ll need more than
this to attract & retain
 the right customers
  in mortgage sales & originations technology

Do you know...                                   Do you know...
  Who your most risky customers are?                Which customers are ripe for cross selling?
  Which customers are shopping around?              How to get the most out of every sale?
  How to retain customers more profitably?          How to optimise individual customer pricing?
                                 We do!                                                  We do!

      N4Solutions             To find out more, please call Gary Muchmore on 01285 852200
      An Experian company

Time for reflection
Perhaps the first comment to delegates at this year’s Council of Mortgage
Lenders conference should be a “well done for surviving”! This has been one
of the most traumatic years in living memory for the mortgage market, and
the industry has undergone dramatic changes.
   This year’s event comes at a critical time for the mortgage industry, and
the content of the conference reflects that. Leaders in the industry will speak
about their experiences of the past couple of years and explain their visions
for the market going forward.                                                                                       CONTENTS
   The quality of speakers is, as always, of the highest calibre. One highlights
is Vince Cable, who has been lauded for predicting global financial problems
and highlighting innovative and effective solutions - many of which have
been taken on by his counterparts across the political spectrum.                                               4    CML Welcome
                                                                                                                    The Council of Mortgage Lenders
   There are also representatives of the Financial Services Authority, experts                                      welcomes you to the CML Annual
from leading research organisations, specialists in increasing business and, of                                     Conference 2008 and picks out some
                                                                                                                    of the highlights of this year’s event
course, leading figures within the mortgage industry all keen to pass on their
knowledge and experience.                                                                                      5    The Venue
   The format of the conference enables you to tailor your own programme,                                           Whichever method of transport you
                                                                                                                    are using to head to the conference,
designed around your specific interests and requirements. There will be
                                                                                                                    here are the routes to the venue at
plenty of opportunities for networking too, which will give you the chance to                                       Old Billingsgate Market
discuss individually the issues that matter to you, and hopefully build your
                                                                                                               6    Holding firm
                                                                                                                    The mortgage market has been
   There are also plenty of chances to enjoy yourself with the famous CML                                           through a turbulent year, reports Ben
Dinner giving you the chance to mingle with the great and the good of the                                           Wilkie, who picks out the main stories
                                                                                                                    of the year
mortgage industry. For more information on this, and the rest of the event,
visit                                                                                   10   Attracting and retaining
Ben Wilkie,                                                                                                         the right customers
                                                                                                                    Andrew Levers at N4 examines
                                                                                                                    attraction and retention strategies for

                                                                                                               13   Conference programme
                                                                                                                    A comprehensive, in depth guide
                                                                                                                    to all the sessions, seminars and
                                                                                                                    round table discussions. See who is
 Editor                             Managing Director                 Cost
 Ben Wilkie                         Kevin Crook                       £60.00 pa (UK)                                speaking, with details of the topics      £84.00 pa (abroad)                            and themes they will be exploring
 Publisher                          020 8253 4600                     £5.00 single copy (UK)
                                                                      £7.00 single copy (abroad)               18
 Dan Miller
                                    Headley Brothers
                                                                                                                    Social programme
                                                                      All prices include postage                    After the rigours of the day, members
 020 8253 4608                      Head Office                                                                     and their guests can unwind during
 Business Development               Metropolis Business Publishing    Mortgage Finance Gazette published
 Manager                            6th Floor                         by Metropolis Business Publishing,            the eveing at the CML annual dinner
                                                                      part of Metropolis International
 Mike Mortimore                     Davis House                       Group Ltd.    2 Robert Street
                                                                      Any views or opinions expressed in
                                                                                                               20   Exhibitor list
 020 8253 8602                      Croydon, CR0 1QQ
                                    Tel: 020 8253 8600
                                                                      this magazine are solely those of             Details of exhibitors and sponsors and
 Design & Production                                                  the author and do not necessarily
 Felix Blakeston                    Fax: 020 8253 8380                represent those of Metropolis Business        where to find them
                                                                      Publishing   Subscriptions
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 Sarah Lemm                       020 8950 9117
 020 8253 8392

CML Conference 2008                                                           y MortgageFinanceGazette                           3

Welcome to the 2008
CML annual conference
                     hat an extraordinary    for some of the key issues in the UK                             z Concurrent breakout sessions to cover
                     year. Many months       today – the future scale and scope of                              a range of practical issues, including
                     ago, when we chose      home-ownership; consumer aspirations                               in depth sessions looking at funding,
                     “After the storm”       and the extent to which it will be pos-                            organisational strategy, high perform-
                     as the title of this    sible to meet them; financial exclusion;                           ance team management in the credit
year’s conference, we carefully avoided      and attitudes and exposure to risk, at an                          crunch environment, and fraud. Later
giving a prediction about whether this       individual level, and on a national and                            in the day, there are many more brea-
would reflect a review of past events by     global scale.                                                      kout choices covering subjects as
December 2008, or a look ahead to the           The CML stated view is that it would                            diverse as managing “back book” cus-
future. We knew things were tough, but       be neither prudent nor desirable for to-                           tomer issues, dealing with arrears and
we did not know then quite how tough         tal mortgage lending to match 2007 lev-       Vince Cable          possessions, outsourcing, product de-
the year would prove to be for so many       els. The reality is that, given lower house   deputy leader        sign, credit risk assessment, and the
of our members.                              prices and a sharply reduced supply of        and shadow           future of mortgage distribution.
   It’s been an annus horribilis for the     – and demand for – mortgage finance,          chancellor,        z For even more choice on specialist
mortgage industry as a whole. Lenders        such a volume of lending cannot be            Liberal              areas, we have a choice of round-
appear to be damned if they do and           achieved in any case.                         Democrats            tables from industry thought lead-
damned if they don’t (lend, that is).           In our view, gross lending this year is                         ers, giving you a chance to explore
Banks, building societies and specialist     likely to total around £255 billion, com-                          and discuss potential approaches
lenders alike have undergone mergers         pared with £363 billion in 2007. Net                               with solution providers and your
and portfolio fire sales, and some are no    lending, meanwhile, is likely to total                             peers from the lending industry.
longer lending. Broker firms have been       around £40 billion, compared with £108
shedding staff and closing down. Con-        billion last year.                                               And some big questions
sumers have seen a reduction in choice                                                                        As well as these highly relevant sessions
and availability of deals, and the Gov-      Strategies for weathering                                        for lenders, we will also look at the wider
ernment has made well-intentioned but        the storm                                                        economic and political operating con-
confusing statements about both pric-        In this smaller market, you’re going to                          text that will affect the UK mortgage
ing, and about an expectation of the re-     need strategies to continue weathering                           market for the foreseeable future. We
capitalised banks making lending avail-      the storm for a while yet. So the pro-                           are extremely fortunate to be joined by
able to home-buyers “at 2007 levels”.        gramme we have put together covers                               Professor Willem Buiter from the Lon-
   Against this backdrop, welcome to         all the key issues you’re going to need                          don School of Economics, who will give
our annual conference. While the en-         to consider, from some of the most in-                           us the big picture on the UK economy
vironment may not be pretty, this con-       fluential names in the business. Take a       Jon Pain           and the coping strategies we can adopt
ference could help you transform some        look at the programme for more details,       managing           within it.
of your current problems into opportu-       but some key highlights include:              director, retail      As well as a specific target for lend-
nities, and help you test your planned       z The first major speech to the mort-         markets, FSA       ing next year, the Treasury statement
approach against other emerging views           gage industry from Jon Pain, Financial                        referred to a range of other “commit-
from inside the industry. This is your          Services Authority managing director                          ments” it was seeking. These include
chance to hear the strategies that oth-         (retail markets), formerly Manag-                             “support for schemes to help people
ers are adopting, as well as the views of       ing Director of C&G and a previous                            struggling with mortgage payments to
commentators, politicians, regulators           Chairman of the CML. This will give                           stay in their homes, and…support (for)
and industry insiders on what has hap-          you the inside track on the FSA’s lat-                        the expansion of financial capability ini-
pened and what might happen next.               est thinking on how it will be regu-                          tiatives.”
What could be more important to you             lating and supervising lenders in the                            The CML and lenders are already
and your business right now?                    future.                                                       working with the government to ensure
                                             z An industry expert’s compare-and-                              that as many people as possible are able
Lending volumes in 2009                         contrast view of the US and UK econ-                          to remain in their homes if they suffer
Intervention by the Treasury to revive          omies, mortgage markets, influencing                          temporary financial difficulties. But in
the financial sector has triggered a de-        factors, and possible future directions                       referring to measures to improve finan-
bate about how much mortgage lending            from Tony Ward, chief executive                               cial capability, the Treasury statement
there should be in 2009. In many ways,          of Home Funding Plc – crucial for          Professor Willem   touched on some of the issues forming
this is a microcosm of a more far-reach-        understanding the global context af-       Buiter from the    part of the broader debate ahead.
ing debate to come.                             fecting your mortgage business here        London School of      Perhaps the key issue in that debate
  Its outcome will have implications            in the UK.                                 Economics          will be the aspirations of the vast major-

4 MortgageFinanceGazette                    y                                                          CML Conference 2008

ity of households to be home-owners. In     of future generations, or deny them                    rons for inspiration. We’re planning to
the past, the government has recognised     the opportunities we enjoy. Extend the                 offer you a relevant, business-focused
this and sought to extend the benefits of   benefits of home-ownership towards 75                  but alternative session on which to end
home-ownership to more people. Politi-      per cent of households, or accept that                 the day by looking for the re-invention
cians across the political spectrum have    unaffordable housing will constrain our                opportunities that such a major market
been supported by consumer groups in        social and economic ambitions. Sup-                    shake-up can provide for some play-
pressing for a more inclusive approach      port affordable housing, or see growing                ers. After that, CML director general
to the expansion of home-ownership,         inequalities and disadvantage.”                        Michael Coogan will wrap up the day
and in a campaign against financial ex-        Emotive words, particularly in ret-                 with his reflections, outlook and an
clusion more generally.                     rospect, and the heady stuff of poli-                  update on the CML’s top priorities on
   In a foreword to the Barker review in    tics. Who better than to give us both                  behalf of members for 2009 in his clos-
December 2005, the then chancellor          a political but also an economics-based                ing remarks.
and deputy prime minister said:             view than Vince Cable, deputy leader of                   There’s no other mortgage confer-
   “We will extend home-ownership to-       the Liberal Democrats and the media’s                  ence that offers you so much. So much
wards 75 per cent. We will deliver new      political voice of choice on the credit                expertise, so many top speakers, such a
and better homes, to support growth         crunch.                                                wealth of practical information you can
and prosperity in every English region.                                                            take away and use. We greatly look for-
And we will continue to build on our        An unmissable day and a                                ward to welcoming you to the Council
record of success in building affordable    thoughtful note on which to                            of Mortgage Lenders 2008 annual con-
homes, bringing quality and choice to       finish                                                 ference. CML
those who rent.                             Sometimes, it helps to look over the ho-
   “The choice is clear: Meet the needs     rizon and outside the immediate envi-

The venue                         Old Billingsgate Market, 1 Old Billingsgate Walk, 16 Lower Thames Street, London EC3R 6DX

Stations: Monument - 2 minutes walk, Tower Hill -
5 minutes walk, Bank -10 minutes walk, London Bridge -
10 minutes walk

Car parking is available at:
50 Lower Thames Street (opposite Sugar Quay) London EC4V
2EJ 0870 241 7492
Maximum Height: 6ft 6 (1.98m) Number of Spaces: 110
Tariff per Hour: £2.50

Thames Exchange UG, Bell Wharf Lane, Off Upper Thames
Street , London EC4R 3TB, 0870 242 7144
Maximum Height: 1.98m, Number of Spaces: 466, Daily
Tariffs: £0.80 for 15 mins

There is no parking on site at Old Billingsgate. The venue is
situated on a red route.

To the end of Monument, opposite the venue.

                                                  PLEASE NOTE:
                                                  Old Billingsgate
                                                  should not be
                                                  confused with
                                                  NEW Billingsgate
                                                  Fish market in

CML Conference 2008                                                   y MortgageFinanceGazette             5
Market overview

Holding firm

Mortgage professionals attending this year’s conference deserve
praise simply for surviving the past 12 months. But are we over the
worst? Ben Wilkie reports

            his time last year the mort-     it be left to go to the wall, taking de-   prevaricated for months before decid-
            gage industry was coming to      positors’ money with it, would a white     ing that taking Northern Rock into
            terms with the collapse of       knight – like Richard Branson – step in,   public ownership was the only option.
            one of the UK’s best-known       or – as was eventually the case, should    The Tories, and much of the rest of the
            lenders, Northern Rock. For      it be nationalised.                        banking community, were also at first
the first time in decades, anxious savers       At the time, nationalisation was by     wary of Government ownership of a dis-
had made a run on the bank, and the          no means certain. The Labour Govern-       tressed asset for reasons including the
press was full of stories about how cus-     ment, still fearing that its reputation    total cost to the taxpayer, and the dan-
tomers’ money may not be safe. There         would hark back to the times of na-        ger of a bank with government backed
were also questions about what should        tionalisation a generation before, shied   guarantees proving more attractive than
happen to the stricken bank – should         away from making a fast decision and       its rivals. While these – and other – is-

6 MortgageFinanceGazette                    y                                    CML Conference 2008
out is in        HML
                 Under pressure?
                 2008 has without doubt been a
                 turbulent year in the financial services
                 market, especially in the mortgage
                 arena, arrears are rising, applications
                 are down and costs are increasing.

                 HML can help
                 We have the experience, expertise and
                 resources to help you navigate the
                 tough market conditions:

                  and arrears management


                 Partnering with HML can help
                 ease the pressure both now
                 and in the future.

                 Contact us now on:

                 +44 (0)1756 692171
                 or alternatively, email:

Market overview

sues still occupy the minds of many, the      fering self-certification, sub prime and    soon Alliance & Leicester) and have
general consensus now is that nationali-      buy-to-let mortgages have been un-          also been seen as a safe pair of hands
sation was indeed the right, indeed the       able to fund themselves sufficiently        with savers.
only, option.                                 and while their demises may not be             Lloyds must be rubbing its hands
   Once, earlier this year, the decision      as newsworthy as those of high street       with glee at the bargain it has secured
to nationalise was finalised, the in-         names, they affect the mortgage mar-        with HBoS, buying it for a fraction of its
dustry blew a collective sigh of relief.      ket just as much. The specialist arms of    previous value and avoiding any com-
Surely, we all thought, the worst – in        big American investment houses have         petition enquiry because of the current
the UK at least – was over. How wrong         quietly packed their bags, while other      crisis.
we were…                                      intermediary only lenders have either          And mutuals too have done well, as
                                              changed their focus, merged or, in the      consumers flock to what they see as sta-
Banks                                         case of Edeus, pretty much left the         ble providers in unstable times. Long
As the credit markets continued to            lending market altogether.                  term low rates and attractive savings
tighten, with banks fearing lending              And as specialist lenders have fallen    propositions have seen their business
to each other, more financial services        by the wayside, so too have the interme-    grow.
companies started to struggle. Several        diaries who introduced their business.
of the UK’s biggest banks looked for          Mortgage brokers are struggling nowa-       Consumers
rights issues, with various degrees of        days, and many have already gone to         As the crisis has continued, and re-
success. Loan products were withdrawn         the wall. Complaints are mounting that      cession in all industries starts to bite,
while savings products were heavily pro-      products offered to the consumer can’t      consumers are increasingly feeling
moted in an attempt by lenders to get         be taken through a broker, and with the     the pinch. Although rates are start-
cash flowing in. Bradford & Bingley was       likes of HSBC – which doesn’t work          ing to drop, they have been on the
next to the wall, with a nationalisation      with intermediaries – gaining ground,       rise throughout the year. Combined
of its mortgage book and its savings sold     advisers have had a tough time.             with the rising costs of fuel, food and
to Santander, who also snapped up Alli-                                                   other necessities, consumers are having
ance & Leicester.                             Mutual sector                               to find areas where they can cut some
   Then came HBoS. Britain’s largest          While more conservative lending strat-      costs.
lender saw its share price attacked by        egies left most mutuals in less trouble        The UK housing market is also pro-
speculators amidst unfounded rumours          than their banking counterparts, some       viding cause for gloom. Prices have been
that it couldn’t support its lending.         building societies had fears for their      falling throughout the year, and home-
Again the government stepped in, pav-         future. But the attitude within the         owners who don’t need to sell are hold-
ing the way for the takeover by Lloyds.       mutual sector was markedly different.       ing back and waiting to see what’s going
The new bank, once the deal is signed,        Building Societies in trouble, or who       to happen to the market. This has cre-
will hold a third of UK mortgages, and        feared getting into trouble, went to        ated a shortage of available properties
will result in the losses of potentially      their rivals and asked for help. Skipton    in the market – but as there is almost a
thousands of jobs. It looks like the          is taking over Scarborough, Yorkshire is    complete lack of first time buyers, this
brands of Halifax, Bank of Scotland,          taking Barnsley, Chelsea with Catho-        isn’t making much of an impact.
Intelligent Finance, Cheltenham &             lic, and Nationwide with Cheshire and
Gloucester and so on will stay, for the       Derbyshire. All of these mergers are be-    Next year
time being at least, but their future re-     ing carried out with the minimum of            Recession is now officially here in the
mains uncertain.                              disruption to consumers, and with the       UK, and it’s not going away any time
   The panic in the financial markets         aim of maintaining the strength of the      soon. Most people expect market con-
led to an unprecedented capital injec-        mutual sector. There are going to be        ditions to be difficult throughout 2009,
tion from the UK Government. Lloyds,          fewer lenders, but they are maintaining     with any recovery not to be seen by
HBoS, Barclays and RBS were all of-           their strength.                             2010. The credit crunch so far is esti-
fered significant funds in return for a          Interestingly too, none of the build-    mated to have cost £1.8 trillion, and it’s
state equity stake. All but Barclays –        ing societies that demutualised in the      not over yet.
which has since taken an investment           1980s and 1990s exist as independent           While the market will remain chal-
from the Middle East - accepted the of-       entities any more – Northern Rock           lenging, it will also create opportuni-
fer, on the initially tacit understanding     and Bradford & Bingley have been ef-        ties for lenders. Homeowners will still
that they would continue to fund mort-        fectively nationalised, while Alliance &    need to remortgage, there will still be
gages and other financial products in a       Leicester and the Halifax part of HBoS      a demand for rental accommodation
similar manner to the early parts of the      are being taken over.                       and first time buyers will return to the
decade. What this means is uncertain;                                                     market.
the market has changed and offering           Winners                                        But it also provides an opportunity
riskier products would mean public re-        While no financial institution will con-    for lenders to show their human side.
lations debt in the current climate. And      sider themselves as better off than 18      As more borrowers get into difficul-
regardless of the cash injection, the glo-    months ago, there are some who have         ties, a sympathetic response and action
bal money markets are not in a position       not suffered nearly as much in this fi-     plans that can help will resurrect the
to advance funds at the low rates seen        nancial crisis. Two of the biggest beasts   reputation of the mortgage market as
previously.                                   in the global banking sector, HSBC          one of the UK’s most effective, efficient
   Specialist lenders are the ones who        and Santander, have seen their market       and forward thinking financial
have struggled the most. Lenders of-          share rise (Santander with Abbey and        services. MFG

8 MortgageFinanceGazette                     y                                     CML Conference 2008
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Customer attraction and retention

Attracting and retaining
the right customers
Andrew Levers at N4 takes a look at lenders today and their
strategies for attracting and retaining the right customers

    n unprecedented market condi-            The use of data and                                            real-time decisions.
    tions balancing risk and reward is       technology                                                        Advances in data collection and
    becoming critical. Lenders’ attrac-      Until recently, attracting customers has                       manipulation models have been sig-
    tion and retention strategies are        not been a difficult task for any lender                       nificant in recent times, and modern
    being scrutinised by a multitude         in terms of business volume. However,                          technology systems now allow for this
of stakeholders including the Bank of        apart from risk assessments (which                             data to be brought easily into the sales
England, the Treasury and the FSA as         are, of course, essential) all customers                       process in real-time. Not only does this
well as ordinary investors and indeed        had virtually been treated to the same                         help assess the right risk and detect
the public at large. It is, therefore, es-   service, processes, sales channels, prod-                      fraud, but it also helps with more ac-
sential that attraction and retention        ucts and more or less the same pricing.      Andrew Levers     curate pricing (down to individual cus-
is optimised so as to maximise prof-         Recent events have, however, caused          head of           tomer level), the maximising of every
itability, optimise operational costs        most lenders to ask whether they had         proposition and   opportunity and the ability to increase
and minimise risk, whilst carefully          been targeting the right customers?          marketing at N4   cross-sales significantly. Thus the cus-
utilising resources and capital fund-           We have all heard much about pric-                          tomer receives not only a better and
ing; all of course within the backdrop       ing for risk but what about ‘price-for-                        more relevant product offering, but it
of TCF.                                      good-risk’ or ‘right customer, right                           can be achieved using a single applica-
   Attracting and retaining the right        price’? Up until now many lenders have                         tion process, which is both cheaper for
customers are inextricably linked be-        largely failed to build into their cus-                        the lender and more user-friendly for
cause establishing the right method          tomer attraction strategies factors such                       the customer.
of attracting customers will lead to         as customer profitability, future poten-                          Take, for example, cross-selling and
solid customer retention. In the chart       tial and cross-sale propensity.                                a potential solution; your point-of-sale
below the perpetual circle shows how            One of the reasons why this has been                        system uses the appropriate data model
a long-term strategy of attracting and       so difficult to achieve in the past is the                     to identify that the ‘right’ customer is
retaining the right customer can have        availability of accurate and timely data.                      going through the sales process. The
a positive impact on many factors            Available information has often been                           data model identifies that a number of
and, ultimately, will result in a more       historic and out of date and has, there-                       cross-sale opportunities exist for other
profitable mortgage book.                    fore, not been current enough to make                          credit-related products and related
                                                                                                            protection products. The point-of-sale
                                                                                                            system uses this data and the data cap-
                                                                                                            tured during the mortgage application
                                                                                                            process to present the customer with
                                                                                                            pre-approved options and a pricing
                                                                                                            ‘bundle’ – using an approach similar
                                                                                                            to that of Amazon books. In the back-
                                                                                                            ground, the system has populated all
                                                                                                            relevant application forms and all that
                                                                                                            is required from the customer is an ac-
                                                                                                               In summary, it is a matter of using
                                                                                                            data and technology to identify the
                                                                                                            customer type, in real-time, present
                                                                                                            the relevant cross-sale, which has been
                                                                                                            priced and pre-approved, and reuse all
                                                                                                            the data to make the buying and appli-
                                                                                                            cation process as quick and as simple
                                                                                                            as possible.

10 MortgageFinanceGazette                    y                                                      CML Conference 2008
                                                                    Customer attraction and retention

         It is also important to note that, in on the mortgage market; these utilise                  challenge for lenders, but also an op-
      current market conditions, this can the breadth of Experian’s data assets,                      portunity, as consumer direct channels
      be achieved without the need for a including credit bureau data and the                         allow lenders to be more in control of
      large IT spend and protracted deliv- consumer dynamics data resource.                           the customer sales process, in particu-
      ery timescales. For example, modern         One element of this is a revolution-                lar allowing lenders to control pricing,
      point-of-sale platforms are able to bolt ary tool which uses a series of scores,                cross-selling and the use and re-use of
      on to lenders’ existing components and generated from real-time consumers’                      data more easily. It could be a very ex-
      systems without the need for a costly credit behaviours and activity, includ-                   citing time ahead for the industry.
      re-platforming of the whole technology ing external databases that monitor                         When attracting the right custom-
      infrastructure.                           indebtedness, affordability, property                 ers, lenders may ask:
         So what about retaining the right indexing, profit forecasting and future                       “How do I secure more profitable
      customers? At this unprecedented time opportunity modelling. The result is a                    customers - at a decent price and for
      of decimated mortgage lending and tool that provides an effective mecha-                        the right risk?”
      declining house prices, it may seem nism to help lenders identify customers                        The answer: individual product pric-
      somewhat optimistic to be discussing who present an attrition risk and take                     ing; better use of consumer data; prod-
      borrower retention. However, those of necessary retention activity if they have                 uct differentiation; holistic cross-sell-
      us who have experienced other chal- been identified as the right customer.                      ing capability, and channel operational
      lenging times in the market will know       Moving forward, a combination of                    optimisation.
      that, at some point, a corner will be data and technology will not only be                         Or
      turned. When recovery does begin, it essential for attracting and retaining, it                    “How do I make the most out of
      is likely that the mortgage market will will also play a key role in deciding how               every sale?”
      improve before the housing market and best to service customers to optimise                        The answer: make the initial/primary
      this is certainly where competition will profitability and operational efficiency.              sale as efficient as possible; present rel-
      appear first, with lenders attempting Multi-channel distribution will become                    evant other product offerings; re-use
      to cherry-pick each other’s back book. as much lender as customer driven. As                    data; one application process, and price
      Once again, retention strategies will be with the investment industry, clients                  bundling.
      important as lenders will have to ensure will be serviced differently depending                    When retaining the right customers,
      that they are protecting their best bor- on their complexity and profitability.                 lenders may ask:
      rowers while retaining margin as much For this reason brokers will always be a                     “How do I know which customers
      as possible.                              part of the industry, but equally, more               not to retain?”
         In order toMFG_Article.pdf re- savvy clients may choose to move on-
                      identify and to help 21/10/08      14:04:30                                        The answer: use external data, for
      tain the right customers, Experian has line because of pricing differentiation                  example, indebtedness, affordability,
      developed a suite of solutions focussing or convenience. This presents both a                   property indexing, profit forecasting,
                                                                                                      and future opportunity.
                                                                                                         “How do I retain customers more
          Benchmarking Report                                                                         cost effectively?”
                                                                                                         The answer: process automation; a
          Lender Mortgage Performance                                                                 self-service retention channel; custom-
                                                                                                      er segmentation, and effective use of
          Want to find out how your organisation ranks in comparison with                             appropriate resources and channel.
          the rest of the industry?                                                                      In summary, the combination of
                                                                                                      data and technology can provide a pow-
          2008 mortgage performance and ranking data is now available from Experian.                  erful weapon in the quest for retaining
                                                                                                      and attracting the right customers and
          Find out how your attraction and retention strategies have been performing.
 M                                                                                                    ensuring that lenders meet the tighter
          The Experian benchmarking service is FREE and can be ordered by visiting the                regulatory and investor requirements
          N4 Solutions stand at the CML annual conference 2008. Your report* will present             that are guaranteed to be a result of the
          how your mortgage portfolio is performing against your peers, and includes:                 current and unprecedented happenings
                                                                                                      in the mortgage market. MFG
MY            2008 lending volumes and rankings
              Your delinquency trends mapped against industry trends                                   For more information on
                                                                                                       attracting and retaining the
              Analysis of the risk distribution of your recently acquired business
                                                                                                       right customers, visit the N4
              Your new business LTV profile                                                            Solutions stand at the CML annual
 K            Your delinquent trends by period of origination                                          conference 2008.
              Your attrition trends by period of origination                                           Regarding data, Experian is
                                                                                                       offering lenders a FREE report on
          To order your FREE Experian benchmarking report* visit the N4 Solutions                      benchmarking individual lender
          stand at the CML annual conference 2008.                                                     mortgage performance against
                                                                                                       the industry. To order your report,
                                                                                                       visit the N4 Solutions stand at the
          *The report will only be made available to senior management team members of mortgage        CML annual conference 2008.
           lenders who are CML members and full data CAIS subscribers.

      CML Conference 2008                                               y MortgageFinanceGazette               11
Advertisement Feature

Innovative approach to
arrears management
          he Council of Mortgage Lend-        and attention to their needs, as if they                     insights into the customer’s situation.
          ers (CML) has long since            were approaching the business for a new                      They are passionate also about working
          maintained that there was no        product.                                                     with the customer beyond the initial
          specific need for additional           Our resolution based proposition fo-                      part of the re-engagement process to
          regulatory or legal interfer-       cuses upon a 90-minute interview that                        ensure as much as possible that the rela-
ence regarding mortgage repossessions,        seeks to find the root cause(s) of the                       tionship can be sustained.
given that Mortgage Conduct of Busi-          problem, initially revisiting circum-                           The purpose of our unique, 3-step
ness Rules 13 (MCOB13) and Treating           stances at the time of the mortgage                          process is a commitment to own the
Customers Fairly (TCF) principles were        application, and determining how the                         resolution of the problem between you
already in place to ensure that posses-       financial problems have compounded.           Martin Swann   and the customer. Whilst we are keen to
sion action is taken only as a last resort.   We aim to provide you with a view of                         match the appropriate solution, it iden-
However, the Pre-Action Protocol is           how the customer budgets and runs                            tifies the possible threats to it and how
now effective and has given Lenders a         their household now, and therefore we                        best these might be managed.
clear view of the behaviours and pro-         gear our interview to find out either why                       We believe that there is now an un-
cedures that the Courts now expect to         the customer did not anticipate these is-                    doubted responsibility on the Lenders
be evidenced prior to the start of a pos-     sues happening, or what they have done                       to commence possession action only as
session action. This has only served to       to try and prevent it, and, more impor-                      an absolute last resort, and we under-
sharpen Lenders’ focus upon creating          tantly, how motivated they are to move                       stand that market conditions mean that
and developing alternative dispute reso-      forward to create a solution. We seek to                     more creative solutions are required.
lutions. The dynamics now in play mean        verify all financial statements so that we                   We are totally committed to working
that Lenders need to explore all options,     know, and you know, that we are dealing                      with you to obtain the complete, cur-
which are commercially possible to cre-       with the full facts. In another sense, our                   rent financial position of your customer
ate a Resolution that addresses the cus-      counselling visit is not just a response to                  and provide you with their facts, so that
tomer’s current circumstances.                what has happened, but it seeks a deep-                      all possible outcomes can be considered
   Arrears management processes will          er understanding of why it happened                          with a degree of certainty. In some situ-
evolve rapidly to recognise that there is     and what it says about the propensity                        ations this will, of course, include repos-
a strong commercial incentive to create       for that to happen again.                                    session. Should this be the case, then
solutions with customers who need it             We feel that it is in both yours, and                     the ability to present a full summary of
most. To find the best possible solution      their, interests for the customer to be                      the customer’s situation, and their atti-
to fit the situation, the full facts of the   introduced into the management of the                        tude towards their mortgage and house-
customer’s present circumstances need         CAB, CCCS, or Money Advice Trust so                          hold budget, will assist you in satisfying
to be re-appraised and verified, so that      that an arrangement plan or outcomes                         the requirements of the pre-action pro-
whatever the solution considered, and         can be given the support of an inde-                         tocol.
presented, is not merely a short term fix,    pendent arbitrator and, more impor-                             Finally, our model is sufficiently flex-
moreover is one which is sustainable in       tantly, give the customer an opportunity                     ible so that if you are segmenting your
the longer term.                              to have any non-priority creditors man-                      mortgage portfolio by different levels of
   In our opinion it is now crucial that      aged by these Agencies.                                      borrower delinquency, we would be de-
Lenders are seen to either re-engage or          There are further examples of the                         lighted to discuss with you how we can
to have attempted to re-engage with           use of a full and corroborated fact-find                     provide maximum value at the different
their customer at the earliest opportu-       to provide solutions beyond the mere                         stages of your arrears management pro-
nity, and for that engagement to have         extending of the term, amending the                          gramme. Indeed, you may have other
a tone that is as much concerned with         mortgage to interest only, or capitalis-                     related requirements, which our com-
gathering quality information as it is se-    ing of the arrears. Programmes of re-                        plimentary range of services may well be
curing a payment. This is where having        profiling, supporting local authority                        suited in providing a solution.
the right people, including third party       schemes or assisting voluntary sales are                        We are confident that you will agree
providers, doing the right jobs really        more likely to obtain Board sign off if, as                  that this really is a Special Resolution
does underpin TCF, and drive forward          part of the solutions matching process,                      Service and look forward to discussing
Resolutions that address the need of          the latest full set of customer facts are                    any aspect of it with you.
both customer and client. This style of       obtained and verified in support.
approach ensures the treatment of cus-           Our counsellors have been selected                        Martin Swann at Special Resolution
tomers experiencing financial stress is       because of their track record in develop-                    Services
managed in a consistent and fair man-         ing successful Income and Expenditure
ner, receiving the same level of service      reviews, which provide more reliable                         07769 660033

12 MortgageFinanceGazette                     y                                                     CML Conference 2008

After the storm –
Weathering change in the UK mortgage market

Adam Shaw, broadcaster and journalist

Steve Jones, managing director, N4 Solutions


The economic picture for 2009 looks bleak, that for 2010 uncertain at best. Many of the leading residential mortgage lenders have gone
out of business or been partly or completely nationalised following the most acute financial crisis since the 1930s.
Despite everything our policy leaders have taken to heart the lessons of that period and acted aggressively to save the banks, support
financial markets and sustain demand. So, given all of the above what can we do to cope with this new world?

Willem H. Buiter, professor of european political economy, European Institute, London School of Economics and Political Science

Vince Cable, deputy leader and shadow chancellor, Liberal Democrats


The Financial Services Authority’s role in the UK and worldwide money markets has changed drastically in 2008. The past few months
have seen the role of regulators increase in scope and power. Against this background the FSA will detail what new action it is planning
in the mortgage arena and what can the industry expect from the ‘new’ FSA?
z What will be the FSA’s new approach on regulation and supervision of mortgage lenders post credit crunch?
z Will treating customers fairly still be an FSA priority after December?
z How will the FSA manage its increasing regulatory scope of responsibilities as well as business as usual activities?
z How can the FSA help mortgage firms – lenders and brokers - weather the storm?

Jon Pain, managing director, retail markets, FSA will discuss these issues with Michael Coogan, director general, CML asking the above question



The US mortgage market is widely regarded as the bug that started the epidemic. So exactly what were the circumstances that allowed
this to grow unchecked in the US and affect the world economy? And what can we, as an industry, learn from those mistakes?

z The Economy – UK v US
z The mortgage markets – UK and US
z US Mortgage market – what happened? A run through of each factor and comparison with UK
z Possible regulatory directions in the US

Tony Ward, chief executive, Home Funding Plc

                      For further information and to book online please visit

CML Conference 2008                                                 y MortgageFinanceGazette                  13


        Industry Market Debate                                                  Demystifying the funding crisis

        z How much has the industry as a whole been affected by market          When news of rising defaults in the US sub-prime
          conditions this year?                                                 mortgage market first began to surface in late 2006,
        z Which types of organisation are well placed to weather the storm      few could imagine it might trigger a chain of events
          and take advantage of the stormy waters this year?                    that would lead to the global banking crisis we have
                                                                                witnessed. This presentation explains the processes that
        Panellists include:                                                     have been at work, and will look at what might be in
        Steve Haggerty, managing director, Skipton Building Society             store going forward.
        Nigel Terrington, chief executive, Paragon
                                                                                Rob Thomas, senior policy adviser, CML



        High Performance Team                        Changing times, changing                       Policy options and alternatives to
        Management                                   crimes: Mortgage fraud detection               the funding gap
        The 5 things managers must know              and prevention in a new environ-
        and do to survive and thrive                 ment                                           z How and when might normality
        z Being clear and committed to where         z What are the latest trends?                  z Are additional measures needed
          you are going                              z What and how can we share more                 from government to manage
        z Getting the right people on the bus          meaningful Information?                        the on-gong effects of the credit
        z Trust – what is it and why is it impor-    z Can new advances in technology                 squeeze?
          tant now more than ever                      help detect and prevent mortgage
        z Curiosity killed the cat but it saved        fraud?                                       Rob Thomas, senior policy adviser,
          the manager                                                                               CML
        z What’s more important – your plan          Tracy Wingrove, managing director,
          or its execution?                          National Hunter Ltd.

        Terry Russell, intouch consulting


        IBM’s 2008 Global CEO Survey                 Technology: strategic                          Fighting Fraud
        and Ipsos MORI’s latest research             management of customers in the
        on the current financial climate             current market environment                     Tom Parker, managing director, Quest

        Michael Davison, senior management           Mark Keyworth, head of strategy
        consultant, IBM UK and James Lovett,         reviews, global consulting, Experian
        research manager, financial services,        Decision Analytics
        Ipsos MORI

        Rationalising operations for the             Re-evaluating distribution
        new world                                    channels in the new environment

        Ed Wells, associate director, retail         Frank Eve, Frank Eve Consulting
        banking, financial services (Europe),
        Navigant Consulting

                    For further information and to book online please visit

CML Conference 2008                                          y MortgageFinanceGazette                        15



        Strategic management of                    Dealing with arrears and                  An introduction to Outsourcing :
        customers in current market                possessions                               Outsourcing made easier
                                                   z Political pressures (including Pre-     z What is outsourcing?
        z Front book/back book                       Action Protocol)                        z Why outsource?
        z Negative equity and ‘trapped’            z Economic environment                    z The outsourcing lifecycle
          customers                                z Market expectations                     z The decision to outsource
        z Implication for TCF for                  z Initiatives (assisted sales, negative   z What can you outsource?
          existing business                          equity sales, debt sales etc.)          z Selection processes
                                                   z Rescue Schemes                          z Key contract terms
        Mungo Dunnett, Mungo Dunnett                                                         z What does good and bad look like?
        Associates                                 Ray Hugill, head of credit strategy,
                                                   Bradford & Bingley and Chairman,          David Hamlett, head of outsourcing,
                                                   CML Arrears and Possession Panel          Wragge & Co.



        Product                                    Process                                   Distribution

        z What has the credit crunch done          z How will the credit risk assess-        z What will mortgage distribution
          for product innovation, design             ment process have changed in              look like in 2009 and beyond?
          and exit?                                  2009?                                   z What will characterise winners
        z To what extent has the recent            z Where will technology help?               and losers?
          flight to credit safety made prod-       z How can we make sure that both          z How will this business be done
          ucts more, not less, risky?                the front end and back end proc-          differently in the future?
        z What next in product design?               ess is aligned?                         z What role should intermediaries
        z Is innovation dead?                                                                  have?
        z Point of sale technology                 Speaker, tbc
                                                                                             Stephen Smith, director of housing,
        Stephen Knight, executive chairman,                                                  Legal & General
        Checkmate Mortgages

        Leading business speaker

16.35   N4 PRIZE DRAW

        Who will be the lucky winner?

        Michael Coogan, director general, CML


                   For further information and to book online please visit

16 MortgageFinanceGazette               y                                            CML Conference 2008
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Mortgage Finance Gazette, the industry’s longest established publication has relaunched the

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The newsletter will include all the latest news stories and comment a ecting the mortgage

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step ahead of the game.
Social programme

Dazzle at the dinner

            he CML annual dinner is          take their places at the fabulous “Daz-     sage/makeover courtesy of the fabulous
            widely regarded as one of        zle” dinner. A superb four-course meal      Powderpuff Girls.
            the mortgage industry’s          will be served accompanied by wine             And the drinks will keep flowing as
            most eagerly awaited social      and coffee. Guests will be welcomed to      this year all wine, beer and soft drinks
            events. It is the dinner to be   the dinner by Michael Coogan, CML           are unlimited! The evening officially
seen at and it is therefore no surprise      Director General.                           comes to an end at 12.30am but no
that year after year tickets sell out.          During the dinner, guests will be        doubt many will continue the party
The theme this year is “Dazzle” and in       invited to participate in a charity prize   elsewhere as is the case every year.
keeping with the glamorous connota-          draw in aid of Habitat for Human-               This year the CML annual din-
tions that this brings to mind, the dress    ity (HfH) which is supported by GE          ner is also open to non-members. The
code will be black tie.                      Money Home Lending. HfH has been            price of a table is £2,200 plus VAT
   The evening begins at 7.00pm with a       CML’s charity partner over several          which includes welcome drinks, a four
welcome drinks reception during which        years, with substantial funds raised at     course meal, and unlimited wine, beer
sparkling wine and soft drinks will be       previous annual dinners. Prizes have        and soft drinks throughout the rest of
served. As guests arrive, they will be       been kindly donated by CML members          the evening. Places may also be indi-
greeted by the smooth sounds of a jazz       and include a pair of top England foot-     vidually booked at £220 plus VAT per
band. The drinks reception is the ideal      ball tickets. All proceeds raised on the    head. During these difficult times I’m
time to network with lenders, interme-       night will be donated to HfH to help        sure you will agree that this is excel-
diaries and supplier firms before the        them continue in their aim of enabling      lent value for money. Guests booking
sit-down dinner begins. To aid net-          those living in poverty to have a safe      individual places or small groups will
working, every guest will receive a com-     and decent place to live, both in the       be seated on mixed tables, hosted by
plimentary pocket-sized dinner hand-         UK and around the world.                    CML staff.
book including full guest listings. This        After dinner, guests can enjoy the       Make sure that your organisation is
year those who booked early enough           excellent five-piece party band or make     represented by visiting
were able to secure limited VIP tables       their way through to the after dinner and
which give them access to a separate         party area which is kindly sponsored by     completing the online dinner
                                                                                         booking form found on the dinner
drinks area, where they will be able to      Absolutely Training. Here they will be
                                                                                         page. Please contact
meet their guests.                           able to indulge in some gambling at the if you
   At 8.00pm guests will be invited to       casino tables, or even enjoy a mini mas-    require any further information.

18 MortgageFinanceGazette                    y                                   CML Conference 2008
                                      Beyond the crisis

     N OW !



           RE S T RI C T

EMF Annual Conference 2008
20th and 21st of November 2008 | BRUSSELS
Floorplan and exhibitor list

CML annual conference exhibition floorplan 2008

                                                                                                   Company                           Stand Status
                 Main conference room
                                                                                                   CML                                 1      Exhibitor
                                                                                                   Target Group                        2      Exhibitor
                                                                                                   Vertex                              3      Exhibitor
                                                                                                   Registers of Scotland               4      Exhibitor
                                                                                                   UKValuation Ltd                     7      Exhibitor
      1             2          3               4

                                                                                                   Sandstone Technology                8      Exhibitor
                                                                                                   HML                                10      Exhibitor
                                                                                                   Rightmove                          11      Exhibitor
                    8                          7

                                                                                                   N4Solutions                        12      Conference sponsor
                                                                                                   IBM                                15      Thought Leader
                 10      Refreshments
                                                11           20
                                                                                                   LSL Corporate Client Department    16      Exhibitor
                                                                                                   Clayton Euro Risk                  17      Exhibitor
               24       23           22            21                                              Scotcall                           18      Exhibitor

                                                                                                   ifs School of Finance              19      Exhibitor
                                                                                                   Quest Associates                   20      Thought Leader

               25       26*         27*            28
                                                                                                   eg                                 21      Exhibitor
                                                                                                   The Scarborough Group              22      Exhibitor
                                                                                                   Metlife                            23      Exhibitor
               15       16           17            18          19
                                                                                                   Absolutely Training                24      After dinner party sponsor
                                                                                                   Yorkshire Key Services             25      Exhibitor
                                                                                                   PNLA                               28      Exhibitor

                                        * Available at time of going to press

 N4 Solutions – an Experian company                                                                                                  Conference sponsor
 N4 Solutions –               N4 Solutions (N4) is one of the UK’s leading providers of multi-channel point-of-sale and application processing (sales &
 an Experian company          originations) technology for mortgages and wealth management.
 Contact: Karyn
 Middleton                    The company’s mortgage sales & origination platform provides a comprehensive and highly configurable solution for
 Tel: 01285 852200            automating the mortgage process from initial contact through to completion.
 Email: karyn.          N4’s vertical market knowledge, combined with Experian’s market-leading expertise and products in application process-
                              ing, decision analytics, customer acquisition and retention enables organisations to make key business decisions about
                              targeting, acquiring and retaining profitable customers.

                              N4’s offering supports multi-channel distribution from a single platform. A typical implementation would see an incre-
                              mental deployment of components across the channels. Furthermore, the system is designed to be easily integrated
                              with existing enterprise systems to deliver straight-through-processing to existing back-end servicing systems.

                              N4 has an enviable track record of successful project delivery with clients including major banks, building societies
                              and mortgage lenders.

                              For more details please visit our exhibition stand at the CML Annual Conference or visit our web site at

20 MortgageFinanceGazette               y                                                                              CML Conference 2008
                                                                                        Sponsors & Exhibitors

 Absolutely Training                                                                                After dinner party sponsor

 Absolutely Training      As one of the UK’s fastest growing training companies, Absolutely provides training courses; software and con-
 Tel: 0845 130 5139       sultancy helping businesses educate their staff quickly and efficiently
 Email: Info@             With over 100 off-the-shelf courses on offer we can offer a cost effective solution to any training requirements.   Absolutely also offer three tiers of bespoke e-learning for a solution to suit any size or type of business

                          2008 has seen Absolutely partner with the CML in bringing together an expert team of authors to create vitally
                          important e-learning modules on the subject of Arrears and Possessions. The suite of courses were successfully
                          launched to the Lending, Building Society and Mortgage sector.

                          Absolutely is becoming the industries preferred supplier.

                          In the UK alone we deliver compliance and bespoke training to 3 of the top 5 banks, over 60% of all Building
                          Societies and two of the world’s biggest car dealership’s UK operations.

 Clayton Euro Risk
 Clayton Euro Risk        Clayton Euro Risk is a leading mortgage due diligence provider, focusing on quality of underwriting, collections
 Contact: Tim Keast       activity on non-performing, quality control and monitoring, servicer operational reviews, credit and risk
 Tel: 0117 315 5810       analytics, property valuations and title checks.
 Email: tkeast@           Our work encompasses all types of consumer finance, 1st and 2nd Residential and Commercial Mortgages
                          as well as personal loans and car finance. Working with Lenders, Investors and Servicers we have a wealth
                          of experience and expertise in providing an independent review with an unbiased opinion on quality,
                          management and performance of a loan portfolio.

                          We believe mortgage due diligence and monitoring activity is a vital component in achieving clarity and
                          transparency within a transaction assisting the decisioning process and helping to restore confidence in capital

                          We have been operating for more than 10 years serving clients in the UK and Ireland, France, Germany, Holland,
                          Italy, Spain, Portugal, Sweden and Russia.

 CML                      The Council of Mortgage Lenders’ members are banks, building societies and other lenders who together un-
 Tel: 0845 373 6771       dertake around 98% of all residential mortgage lending in the UK. There are 11.74 million mortgages in the UK,
 Email: facilities@cml.   with loans worth over £1.2 trillion.
                          The Council of Mortgage Lenders is the trade association for the mortgage lending industry, and our members
                          account for around 98% of UK residential mortgage lending.

                          Our aim is to help to foster a favourable operating environment in the UK housing and mortgage markets. We
                          are the representative voice for the residential mortgage lending industry, and the central provider of economic,
                          statistical, legal, research and other market information.

                          Our members are banks, building societies and other mortgage lenders. We also have associates, drawn from a
                          variety of related businesses, including lawyers, conveyancers, search companies and management consultants.

CML Conference 2008www                                      y MortgageFinanceGazette                             21
Sponsors & Exhibitors

 eg solutions plc          eg is a software company specialising in operations management solutions.
 Contact: Rachel Oliver
 Tel: 01785 715772         z eg operational intelligence® provides historic, real-time and predictive Management Information about all
 Email:       the factors affecting operational performance. It enables Managers and Team Leaders to make the right
                             operational decisions to effectively measure, manage and improve customer service delivery.
                           z eg operational management® Implementation and Training services deliver a consistent approach to
                             actively managing work, people and processes anywhere in the world. When used with our software we
                             guarantee to improve operational effectiveness. Customer service, quality and productivity standards will
                             improve, rework will be minimised and bottlenecks unlocked.

                           These two solutions provide a common tool-set and language to deliver a step change in operational
                           performance in short timescales.

                           Our solutions are tried, tested and proven to work in any organisation where process driven operations are
                           critical to business performance.

                           eg guarantees return on investment and is paid based on the results delivered.

 HML                       HML is the UK’s leading provider of outsourced third party mortgage loan and administration services – with
 Contact: Mike Hildred     specialised solutions delivering quantifiable results.
 Tel: 01756 692109
 Email: michael.hildred@   Operating in both Sterling and Euros, HML has continued its tremendous growth rate over the past few years                 with over £50bn assets under management for over 35 clients. Fitch Ratings has reaffirmed HML’s ratings of
                           RPS2+ for both Prime and Sub-Prime Servicing for the fifth year in succession; the highest rated primary servicer
                           in the UK. In addition, Moody’s and Standard & Poor’s have affirmed their service ratings of SQ2+ (Primary) and
                           ‘Above Average’ with a ‘Positive Outlook’ respectively. Standard & Poor’s has also awarded HML an ‘Average’
                           ranking as a residential special servicer.

                           HML operates out of four locations across the UK and is focused on delivering measurable bottom line benefits.
                           Employing some of the best people in the industry and continually investing in technology and communication
                           systems, including lean management techniques, HML is at the forefront of mortgage servicing, leaving clients
                           free to focus on high-level business strategies.

 IBM                       IBM, one of the world’s largest information technology (IT) companies and a leading provider of business and
 Contact: Katherine        IT services, is a pre-eminent technology partner to the world’s financial services industry. Working directly with
 Strachan                  its financial services clients, IBM helps them become more competitive through the innovative deployment of
 Tel: 01926 465118         high-impact solutions.
 Email: kstrachan@                IBM has extensive skills and experience in the industry attained through several decades of relationships with
                           leading financial services institutions and it offers a range of specific solutions and services to help meet todays
                           business challenges.

                           These solutions comprise the full range of IBM capabilities including consulting, software, hardware, research
                           and services. IBM’s goal is to be the strategic partner that provides the right mix of solutions and services to help
                           support our financial services clients’ business and IT objectives.

22 MortgageFinanceGazette         y                                                                CML Conference 2008
                                                                                           Sponsors & Exhibitors

 IFS                       The ifs School of Finance is a registered charity incorporated by Royal Charter. We provide education to financial
 Contact: Philippa Broad   services professionals the world over, and to consumers in the UK.
 Tel: 01227 818650
 Email: pbroad@            We provide an extensive range of regulatory qualifications, all of which are fully accredited by the Financial         Services Skills Council (FSSC) and (where relevant) the Qualifications and Curriculum Authority.

                           All of our regulatory courses are extremely flexible. Study is completed through distance learning and
                           assessment is available on demand, through electronic examination, at over 150 exam centres in the UK.

                           Our regulatory provision has recently extended to include the Diploma for Financial Advisers (DipFA). The DipFA
                           will set a new standard for higher level financial adviser qualifications and has been specifically developed to
                           ensure that advisers and customers gain the maximum benefit from the advice-giving process.

                           Please visit for more information.

 LSL Corporate Client      LSL Corporate Client Department (CCD) is an innovative Asset Management business developed with the
 Department                considerable backing of it’s parent company LSL Property Services PLC.
 Contact: Carl
 Drinkwater                Having entered the market in late 2007 LSL CCD has established itself as a provider of creative solutions
 Tel: 07968 604 855        underpinned by market leading technology and delivered by an experienced Management team with a
 Email: carl.drinkwater@   dedicated and knowledgeable workforce.
                           Their significant investment in technology means that clients can have secure access to their system, LSL CCD
                           has found this to be invaluable for conducting day to day case reviews with lenders remotely. Other technology
                           lead features include on line reporting and call recording.

                           LSL CCD are at the forefront of industry thinking having been involved in initiatives including Assisted Voluntary
                           Sales. Additionally the lettings and management arm of CCD has been delivering solutions for lenders who are
                           retaining properties and letting them under a service called ‘Residential Portfolio Management’.


 MetLife                   MetLife is a global leading provider of insurance and financial services. Established for over 140 years MetLife
 Contact: Steve Morris     specialise in distributing, underwriting, administering and marketing personal protection and wealth management
 Tel: 0118 9000 611        products to meet customers’ lifestyle needs.
 Email: steve.morris@            Offering a Total Managed Insurance Solution (TMIS), MetLife work with client partners such as, Banks, Building Socie-
                           ties, Retailers and Motor Finance Houses across their international base, to provide protection and wealth manage-
                           ment products to their customers, via multiple distribution channels.

                           Having started its existence in Manhattan, US in 1868, MetLife has grown to be the largest life insurer in the US, dominat-
                           ing the No.1 position since 1991 and is the 4th largest insurance group in the world. With an AA rating (S&P), over $3.7trn
                           of in-force life business and 70m customers worldwide, MetLife are poised for even greater International growth.

                           This year, MetLife was recognised as the ‘best managed US insurance company’ by Forbes.

                           To find out how MetLife can work with you and to enter the prize draw visit stand 23 at the CML conference or call Steve
                           Morris on 0118 9000 611


CML Conference 2008                                           y MortgageFinanceGazette                              23
Sponsors & Exhibitors

 Navigant Consulting                                                                                              Marketplace sponsor
 Navigant                  Navigant Consulting’s Financial Services Consulting arm (formerly known as Troika) has established an enviable
 Consulting                set of credentials and a reputation for excellence, consulting to the Financial Services market since 1998. Part of
 Contact: Jim Muir         Navigant Consulting since August 2007, we can now offer even more perspectives to our clients.
 Tel: +44 (0) 207 015
 8750                      Our simple formula is to work with our clients applying our skills and experience to help them deliver their vision.
 Email: jim.muir@
 navigantconsulting.       We have four teams focussing on the Financial Services industry: Retail Banking, Investment Management, Life &
 com                       Pension and General Insurance.

                           We offer the following services to our clients:-

                           z Developing product, distribution, operational                  z Defining business and system architectures
                             and IT strategies.                                               and operating models.
                           z Specialist advisors and deal-makers in                         z Maximising business performance through process
                             outsourcing and distribution alliances.                          and organisational redesign.
                           z Turning business strategies into robust and achievable         z Transition management.
                             plans.                                                         z Facilitating business to business deals.
                           z Programme and project management.                              z Organisation, People and Change strategy and activity.

 Professional Negligence Lawyers’ Association
 Professional Negligence   The Professional Negligence Lawyers’ Association is a nationwide group of solicitors who act for those involved in
 Lawyers’ Association      professional negligence claims.
 Contact: Nigel Mallett
 Tel: 0117 905 5316        The PNLA Lender Claims Group includes those members with a particular interest in working with mortgage lenders.
 Email: nigel.mallett@     Many of the Group acted for lenders in the early 1990’s and indeed may well be panel members today.
                           Lenders will need to address issues arising from repossessed properties which do not realize the value anticipated. Some
                           of those may be the result of professional negligence or fraud.

                           Services to lenders include:-

                           a. Training, support and information sharing for in house teams and panel firms. (The next targeted event takes place on
                           25/26 November 2008 including speakers from Bradford & Bingley and City of London Police)

                           b. Specialists in professional negligence claims, fraud, asset tracing and recovery.



 Quest                     Quest has supplied IT and computer systems relating to UK property transactions for over 25 years.
 Contact: Thomas Parker
 Tel: 01344 403400         Quest, which is part of the Landmark Information Group, is the market leader in the provision of survey and
 Email: sales@questuk.     mortgage valuation systems with its products handling in excess of 2,000,000 cases per year in over 7,000
 com                       installed sites. This represents over £200 billion of lending security.

                           Building on its experience in this sector, Quest has developed specific products that help mortgage lenders
                           combat mortgage fraud. Q-Guard is an intelligent software tool that provides an additional layer of security to
                           the existing mortgage approval process.

                           It helps safeguard the mortgage lending community by offering a unique fraud analysis review at the point of
                           valuation, once personal identification and credit checks have taken place.

                           Using historical and real-time mortgage valuation reports, Q-Guard applies layers of intelligent pattern-match-
                           ing techniques and data analysis to assist in helping drive down incidents of mortgage fraud.


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                                                                                             Sponsors & Exhibitors

 Registers of Scotland
 Registers of Scotland     The Keeper of Registers of Scotland is responsible for compiling and maintaining records relating to property
 Contact: Bill Carracher   and other legal documents. Handling around half a million registration transactions each year Registers of
 Tel: 0131 200 3943        Scotland (RoS) plays a vital role underpinning the Scottish economy.
 Email: bill.carracher@                RoS has always been self-financing, being funded by the fees charged for registration and for providing
                           information from the registers. These fees have recently been reduced, in the case of registration fees by over a
                           quarter. It was awarded Trading Fund status in 1996.

                           Registers of Scotland has a clear goal to further reduce reliance on paper-based systems, drive down fees
                           and provide a first class service to the people of Scotland. To further this goal RoS has introduced Automated
                           Registration of Title to land (ARTL) which allows Lenders active in the Scottish market to realise the benefits of
                           faster paperless registration and reduced costs.


 Rightmove Data
 Rightmove Data            Rightmove Data offers a highly accurate online valuation service, the Rightmove Automated Valuation Model
 Contact: Nicolas Gates    (AVM). The service provides an instant and accurate property valuation for lenders, surveyors and other
 Tel: 020 7087 0688        professional users. As well as displaying all of the quantitative data, the Rightmove AVM reports usually have
 Email: nicolas.gates@     photographs of the property being valued and its comparables.
                           The Rightmove AVM uses data from a number of surveying partners, HMLR and over 90% of the UK’s estate
                           agents, making it the largest database in the industry. The model is employed for a number of uses including
                           origination, re-mortgaging, securitisation, Basel II, audit, arrears management and asset management.

                           Rightmove plc has a proven track record of delivering market leading solutions to the Property industry for over
                           8 years. is the UK’s number one property website with over 29 million visits per month and is
                           currently ranked in the top 20 largest websites in the UK. At any one time it advertises over 1,000,000 properties
                           from over 20,000 estate agents, letting agents and new home developers.

 Sandstone Technology
 Sandstone Technology      Sandstone enables better lending decisions, faster…
 Contact: Mark Aldred      and can help you raise retail deposits rapidly and at low cost.
 Tel: +44 (0)208 144
 6396                      In a turbulent environment, lenders need to be agile and improve the quality of lending whilst meeting regulatory
 Email: markaldred@        demands. Sandstone’s LendFast loans origination solution delivers these benefits to lenders worldwide.
                           Agile – React quickly to a changing market to reduce your risk and improve loan profitability
                           Quality – Identify high quality applicants early and achieve faster “time to yes”
                           Compliance – Meeting current and emerging regulatory requirements

                           Sandstone’s BankLink and eSave solutions can also assist with online deposit based solutions.

                           Join other Sandstone customers; team with a proven world leading solution provider, committed to improving
                           your business and providing long term innovative lending solutions.

                           Talk to Sandstone to see how we enable our customers to deliver competitive products and services to their
                           customers, with lower processing cost and risk

                           Visit or email

CML Conference 2008www                                        y MortgageFinanceGazette                             25
Sponsors & Exhibitors

 ScotCall                   ScotCall is the leader in the provision of field based reconnection, rehabilitation and collection visits to the
 Contact: Craig Wilson      Finance Sector.
 Tel: 0141 243 4839
 Email: cwilson@scotcall.   The ScotCall Special Services business uses fully employed trained negotiators who can carry out home visits                      Nationwide to establish reasons for non-payment and provide re-habilitation services to get customers back on

                            The home reconnection model offers your customer the opportunity of direct telephone contact with you,
                            allowing you to quickly regain control of your customer relationship.

                            ScotCall uses the latest 3G enabled handheld technology for the secure real-time transfer of account data to and
                            from the field throughout the UK and ROI, providing clients with an up to date picture of each account status.
                            Merchant services from the handheld allow secure card payments together with cheques and cash.

                            ScotCall Special Services offer a high value proposition and can be used from single payment default, reducing
                            debtor roll-over, and downstream litigation and impairment costs.

 The Scarborough Group
 The Scarborough Group      Big Enough to Matter – Small Enough to Care
 Malcolm Larmouth           Whatever your lending business strategy is, the Scarborough Group can move quickly to meet your needs while
 Tel: 01723 504 326         taking the time to ensure you receive a personalised approach to service.
 malcolm.larmouth@          Our third party administrator Scarborough Mortgage Services (SMS) understands that every client is different.        With this in mind, SMS is able to offer your business a fully tailored end-to-end solution, with particular emphasis
                            on our excellent arrears management capability.

                            SMS’ expertise, flexibility and proven track record in meeting the individual administration needs of diverse
                            organisations are second to none. With 18 years of experience, SMS is a growing and dynamic organisation, com-
                            mitted to working in partnership to provide tailored business solutions.

 Target Group
 Target Group               Target Group is an expert in delivering lending systems and business process outsourcing to companies operat-
 Contact: Hannah            ing in the financial services industry.
 Edwards                    Our systems streamline processes, deliver efficient credit and loans processing, loan servicing, and arrears man-
 Tel: 02920301401           agement.
 Email: Hannah.             At Target we look at the issues facing today’s market, whilst also evaluating future developments, to provide
 edwards@targetgroup.       solutions which directly overcome your market challenges. Our industry expertise, consultative approach and
 net                        innovative software means that we really can make a difference to your business.

26 MortgageFinanceGazette           y                                                                CML Conference 2008
                                                                                           Sponsors & Exhibitors

 UKValuation                 UKValuation is the pioneer of the Automated Valuation Model in the UK. Backed since 2006 by the experience
 Contact: Vishal Passan      and resources of First American CoreLogic (the AVM market leader in the US, with an $8bn turnover),
 Tel: 07970 303281           UKValuation is dedicated to delivering a range of cost effective property risk management solutions entirely
 Email: vishal.passan@       focused on the UK lending market.
                             UKValuation has an ever-expanding and comprehensive database of property information underpinning its data
                             analytics capability.

                             We are building on our reputation for technical excellence and customer-focused solutions by integrating our
                             core AVM service into a suite of property risk management solutions for loan origination, funding, servicing,
                             arrears management, litigation, securitisation, balance sheet management as well as Basel II and audit functions.

                             For more information please contact our National Sales Manager Vishal Passan on
                             07970 303281 or email


 Vertex Financial Services   For leading business process outsourcing and software solutions speak to Vertex
 Contact: Angela Morrall
 Tel: 01242 214000           Vertex is a leading global Business Process Outsourcing (BPO) and Customer Management Outsourcing (CMO)
 Email: angela.morrall@      business. We provide a range of transformational solutions including outsourcing, technology and consulting                that deliver winning outcomes for our clients. With nearly 9,000 employees spanning 3 continents and 60
                             locations, we deliver solutions to a wide range of clients who include over 25 of the UK’s leading financial
                             services brands.

                             Specialists in providing cost effective mortgage solutions and minimising your risks, our expertise spans:

                             With a proven track record of success and the demonstrable referencability that you would expect from serving
                             the Financial Services industry for over 20 years, clients can depend on us to deliver rock-solid performance.
                             That means exceptional day-to-day operational reliability, plus continuous operational improvement. We are
                             confident about our ability to improve a client’s business. We put our money where our mouth is: sitting on the
   financial service s       same side of the table, sharing the risks, and actively seeking reward structures that give us a stake in success.

 Yorkshire Key Services
 Yorkshire Key Services      Yorkshire Key Services’ outsourced Retail Deposit and Administration Service is based on innovative Internet
 Contact: Andy McCleod       capability, offering efficient savings account opening capability to our clients.
 Tel: 01274 353535
 Email: armmccleod@          This provides a cost-effective, customer friendly solution, which allows applicants to open their accounts quickly                   and easily using an online, paperless and signatureless application process. Applicants are electronically anti-Money
                             Laundering ID verified and can deposit funds via their Debit Cards at the point of sale. These in-built efficiencies make
                             this a cost-effective solution.

                             Our proposition caters for most online savings products and is highly scaleable to meet your funding requirements.
                             A ‘white labelled’ managed website and Call Centre support is included in our proposition.

                             Project delivery can be achieved in less than 20 weeks.

                             YKS is a wholly owned subsidiary of Yorkshire Building Society, the UK’s 3rd largest Society.

                             For further information, contact Andy McCleod (
                             or David Jackson ( or telephone 01274 353535

CML Conference 2008                                            y MortgageFinanceGazette                              27
Time is money...
                                        How long does it take you
                                           to recover your debts?

                                                         To maximise the performance of your
                                                            lending portfolio, speak to Vertex
Specialists in administering mortgage portfolios and providing debt management for UK secured and unsecured lending.
Call us today on 01242 214572 or email to talk about the following areas:

• Dedicated debt management expertise meeting the needs of individual clients
• Analytics to drive debt modelling and deliver faster recovery of debt
• Tailored strategies deliver highest levels of rehabilitation and cure rates through
  highly effective case management
• Initial default through to possession and shortfall recoveries
• Specialist services with established relationships with time-honoured partners
• Reducing collection costs through application of technology and skilled resources.                                                                                financial services

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