Become a CeMAP Qualified Broker

CeMAP training and regulation of the UK mortgage market




Regulation of the UK mortgage market has increased in line with the overall trend of consumer protection. It is generally felt that hitherto the mortgage market has been under-regulated. The financial scandals of the 1980's and 1990's resulted in much tighter control over the entire industry, not least for self-employed mortgage advisors. It also resulted in greater clarity and transparency with regard to contractual agreements, with the introduction of The Mortgage Code.



However, there was still a long way to go. In 1998, banks paid out ฃ1.3 million against 12,000 customer complaints - a 35% increase over the previous year. Mortgages represent one of the biggest areas of complaint with lock-ins and high redemption costs.




The principal problem facing the mortgage broker is increased market regulation. In view of current market trends, self-employed mortgage advisors are increasingly looking to operate with organisations which provide them with the requisite infrastructure, enabling them to be competitive and meet ever more stringent regulatory requirements, consequently, Mortgage Networks, IFA Networks are taking an increasing share of the self employed mortgage advisor market.



It does not end there as a further tightening of mortgage regulations took place from 31st October 2004, when the Financial Services Authority (FSA) took over from the Mortgage Code Compliance Board (MCCB) and the need for CeMAP qualifications were rigidly enforced and CeMAP training courses were born.




Because of this expansion, along with the development of e-commerce, websites and direct sales, there has never been a greater need for objective, experienced and professional personal advice.



Consumers need and want objective advice to guide them through the mortgage maze. Self-employed mortgage advisors are taking an ever-increasing share of the market and there is a continuing shakedown within the brokerage sector, with Mortgage Networks expanding their influence.




However, since the tightening of legislation from 31st October 2004, estimates show that that the number of CeMAP qualified personnel who are qualified to advise in the mortgage market have nearly halved.



This loss means that the response time for processing mortgage enquiries is likely to increase, along with a rise in administrative difficulties and the risk of compensation claims.




We all strive for success by studying for university degrees, attend courses and continuously look for a spark for direction in life and it's not until we see a professional person in front of us that we realise that it's a job that we would like to do. It seems easy watching that individual working at the height of their career without realising what price they have had to pay to achieve success.



Being in the Financial Services Industry for over 20 years, many people have asked me what it takes to become a successful mortgage broker. As the Marketing Director of Money Marketing Limited, a company that trains hundreds of budding UK mortgage advisers per month, I feel that I am well qualified to answer that question.




" It takes dedication, focus, hard work and the ability to strive for success plus attending a CeMAP training course in order to become a CeMAP qualified broker.



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So what criteria should you use when deciding on your future career direction? Well, try asking yourself a few of the following questions:





ท Would you prefer to be an employee?

ท Are you intent on being successful?

ท Would you like to be self-employed?

ท Are you determined to become a high earner?

ท Would you like to be in charge of your own destiny?

ท Do you think that you would enjoy helping people with their finances?





A 'yes' answer to most of these questions could mean that you should consider investigating how to become a CeMAP qualified broker but before you do, let's look a little further.



The start to becoming a mortgage advisor means passing a mortgage advice qualification and in my opinion the most recognised one in the UK is the Certificate in Mortgage Advice and Practice (CeMAP)





Do you need to have a degree to pass the exams? You will not need academic qualifications to be able to pass the Cemap exams but one thing you will need is a strong desire to succeed in a highly competitive industry.




Would you like to become a CeMAP qualified broker?
If you are looking to start a career in Financial Services as a mortgage advisor but are finding it hard to get your foot in the door, why not let a team of industry-experienced CeMAP training professionals lead the way.



They successfully help individuals to pass their mortgage advice qualifications in literally days of intensive, fast track Cemap training. Having said that, it can be easy for the gifted people who are just natural at passing academic exams. I recently spent a week with a group of 10 delegates on a CEMAP 2 & 3 training course and the range of abilities on the course was extremely diverse.

Do Mortgage Leads Still Work?

Ihave seen many post on websites, broker chat rooms, outpost, and comment sections about mortgage leads being bad and down right fraudulent. Well I have taken this question to the next level, "Are mortgage leads still worth buying?"The answer is of course. I ran an experiment in late July that tested major mortgage lead websites and this is what I generally found.



Mortgage leads are a much more competitive marketing tool compared to several years ago.



Online shoppers definitely do submit their application to more than one site when shopping online - this is the biggest issue noted through out our research.



Return policies are the biggest key to making this investment profitable.



Time spent on calling mortgage leads can be enormous if you let it.



The ROI on mortgage lead purchases is still high if you manage your purchases, people, and profits correctly.



The biggest issue with calling mortgage leads is that we as mortgage brokers and loan officers are spoiled or think that we are calling deals - not leads!



Leads have to be worked, worked, and worked some more.



We bought 10 mortgage leads each from 5 top sources and the results were pretty good. We found that 3-4 were completely bad and the rest had to be called over 4 times just to make initial contact. In the end we had to work the leads for about 3 days and we received 3 applications and one deal went to the table. We found this in 3 of the companies we reviewed.



The outlook we have on the scenario is this - 10 leads for an average of $150.00 and we got 3 potential deals -2 deals we could not get because of the borrowers situation - which is not the lead companies fault - and the other one we had to work for over a week to get a deal struck and bring in 2245.



00 in total fees to our net branch.



What a massive ROI - don't you think?



Another scenario we had was a reorder with a company that we did not strike a deal with, but this time we bought $500.00 in leads and the return was the same. Did we complain, NO, we profited over $1500.00 for a $650.00 investment - that is an easy choice in my office. After calling these leads we called and interviewed a few of the mortgage lead companies and asked them how they view their product and view the brokers that buy leads from them.



First we spoke with Dave Henry (http://www.leadorder.com) and he spoke with us about the cost of generating quality mortgage leads. Dave stated "Mortgage leads can cost between 8 dollars to 14 dollars just to generate, as long as you are using legal and ethical methods to generate mortgage leads. We do not participate in SPAM or incentive backed leads and that drives cost up and drives quantity down."



"With cost going up it has forced 100% of all Lead Companies to work with other marketing companies - do not be fooled all of them do - this in turn can drive down quality because as a company you can not screen every lead.



To combat this we have instituted a verification process that all our affiliate leads go through before hitting our system."



Off the record Mr. Henry stated that he sees his company as a leader in Lead delivery, a big issue with most lead buyers. Their MLT, Mobile Lead Technology, a system powered by Yahoo actually sends a text message or page to a mobile device once a lead hits your email - We say that is a cool idea!



The second person we spoke with was Jayson Williams with Leadbull.com (http://www.



leadbull.com) a mortgage lead company with one of the largest member databases on the web. Jayson states "Our system is simple and since we do put so many leads on our system from our own websites and other marketing companies we want all of them to be backed with the best return policy, so we credit back most request if they fall in our parameters. We want to make the experience easy and profitable. The main issue we find is brokers that call a lead 2-3 times do not get an answer and try to report as bad - just because a borrower does not answer the phone or call you back does not make it a bad lead.



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Jayson says "Our system is based on 3 principles - fair trade - good service - and affordable products. We know that most LOs or Brokers are new or have good employees below them and are responsible for keeping their leads flowing. This is why we offer such a vast array of products like aged leads that are good for telemarketing or new loans officers getting their feet wet. Our verified and exclusive leads come in at a slower rate but are packed with much success. These leads are good for the experienced employee that can close a hot deal and fast.



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We asked Jayson about exclusive and verified leads and he stated the main thing to remember is that "most lead companies are trustworthy and do sell their lead once or the stated amount of times, but the Internet has made it so easy for a borrower to submit an application to 3 different sites in a matter of seconds. This causes your exclusive $75.00 lead to be worked more than you expected - but that is the name of the game. The Internet makes them easy to get but more people are getting them - don't be fooled the less that lead is sold the better but mix it up, do not put our eggs in one basket, but different types of leads and make sure the company has a good return policy.



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We want to thank these companies for their insight and we will add more about or research in the coming weeks. From our findings Mortgage Leads are still a viable source for generating revenue.

Increased Foreclosure Rates In Us

The recent housing market boom has left many people in homes that they cannot afford with loans that they never should have been granted. This is resulting in a 72% increase in foreclosures from 2005 to 2006 according to recent reports. Foreclosure rates are increasing in 2007 due to lack of home sales and increasing mortgage rates. There is also a jump in the delinquency rate on US home loans. The biggest increase in delinquency is on sub prime mortgages where the current rate is up from 12.



56% to 13.33%. FHA loans are also not far behind with a delinquency rate of just over 13.46%



This increase in foreclosures has affected all areas of the housing market: from starter homes to luxury residences. Industry experts believe that there are several reasons for this increase in home loan delinquencies and the increase in foreclosures. Consumer confidence in the current market might make many first time homebuyers, especially couples, take on a larger mortgage that they can afford.



If they are unable to make payment due to a loss in employment for one of the partners, they usually lose their home to a foreclosure. Some experts believe that rising energy prices are also putting a strain on household budgets making it difficult for some consumers to make their mortgage payments.



Another important factor is the cooling off the housing market in some areas of the US. With the decrease in the rate of house sales in these areas foreclosure rates are on the rise.



A decline in the price of housing also leads to a loss of equity for the homeowner that makes it difficult for him or her to leverage their property in case of difficulty with payments. The states with the highest current foreclosure rates are Michigan, Mississippi and Louisiana.



Foreclosure rates are high among ARM borrowers. ARM or adjustable rate mortgages frequently offer a low introductory interest rate, which is very tempting to potential homebuyers. Once signed on homeowners might experience an increase in their monthly payments due to increases in current interest rates.



This might sometimes prove mortgage unaffordable to some homebuyers and lead to the loss of their property in a foreclosure.



The scenario is not one of doom and gloom however. This is a great time for those interested in purchasing foreclosed properties either as their primary homes or as investment properties. Foreclosure sales can allow one to purchase very desirable residences at a fraction of the real value providing one with instant equity and relatively low monthly payments.

Mortgage Refinancing In All Its Aspects

Mortgage refinance is an option that we have if we would like to get rid of our current secured loan and get a newer one in its place. The same assets act as collateral. This means that you take on another loan to replace the old one with the same property used as security against the new loan. Mortgage refinance is especially advantageous for people who would like a fresh loan with lesser interest costs by refinancing it at a marked down rate.



The great thing about mortgage refinancing is that it enables people to have a new source of funds while the repayment dues are a lot lower than before.



Yet another reason for refinancing is in order to draw out the duration of the loan. The funds which may be acquired from refinancing is allowed to be used with almost any purpose, including the opportunity to pay off other debts.



Mortgage refinancing also helps if you are seeking to get rid of your adjustable rate mortgage and get a fixed rate mortgage instead. Since a variable-rate loan tends to shift its interest rate (depending on prime rates which in turn rely on a fluctuating economic index such as currency strength and economic growth), moving over to a fixed-rate mortgage is more beneficial in the long run.



Even if the adjustable rate is somewhat lower, a fixed rate is often a better bet.



A shift to mortgage refinancing is a good decision, especially if the borrower is convinced that this will be a great way to save on a lot of expense. This could be either for the short term or for the long run, or if he needs an extension of the loan in order to compensate for unanticipated expenses such as medical and educational dues.



At the same time, one must bear in mind that refinancing may not always be a money-saver.



This means loans with provisions incurring penalty on the borrower for an early repayment of the loan, either in its entirety or in part. It also costs money since it involves closing and transaction fees. Before you get the loan, ensure that you save enough despite these costs.



Some kinds of refinancing plans require that the borrower will pay a certain amount as initial fees in order to secure the loan. This is as long as the market rate is lower than your current rate by at least 1.5 percent.



With cash-out refinancing, the borrower may refinance the existing loan for one with a higher amount and keep the cash difference for himself. But this might not lead to a lowering of the monthly installments or a shortening of the duration of the loan in question.



If you are looking at refinancing, you need to be prepared to be asked for a certain initial amount before you can be forwarded the refinance mortgage. This portion is commonly referred to in the industry as points or premiums, wherein every point equals to one percent of the total amount of the loan.



The advantage of the point system is that the borrower has the option to pay more points in return for lowered interest rates on the loan. If the borrower is keen to lower the interest rates, he could pay off some additional points by utilizing the money that he saves through refinancing.