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.



"




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.

How to find a CeMAP Mortgage Broker?

When it comes to choosing mortgage brokers, choosing a CeMAP certified mortgage broker will benefit you a lot. You can trust the proficiency of most of the CeMAP qualified mortgage brokers. Most of the CeMAP certified mortgage brokers are highly successful and efficient in their mortgage career. Hence it is the best choice to select a CeMAP certified mortgage broker for your mortgage needs.



The best method to find any CeMAP mortgage broker is through recommendations from known people who may be your trusted friends, relatives or neighbors. You can also ask your own real estate agent for references. But it is also important that you must not blindly select a CeMAP mortgage broker just by recommendation because a recommended mortgage broker may not be best for you just because the broker is best for your friends, relatives or neighbors.



If you do not have any trusted recommendations, you can conduct your research in the internet to find the list of CeMAP certified mortgage brokers. Mortgage related websites such as PersonalHomeLoanMortgages.com are the destination for getting information about every local market including local mortgage brokers and lenders, real estate brokers, title companies and other mortgage resources. Mortgage Directories will help you in selecting CeMAP mortgage brokers.



PersonalHomeLoanMortgages.com offers a free nationwide directory of mortgage brokers. PersonalHomeLoanMortgages.com provides access to the leading national and local mortgage lenders and brokers.You can even contact state and local boards of Realtors for getting the lists of CeMAP mortgage brokers in your area. If the board of Realtors in your area does not have a list of CeMAP mortgage brokers, you can then contact the National Association of Mortgage Brokers for knowing the location of your state's association.



The State Association of Mortgage Brokers will help you by referring some local CeMAP mortgage brokers.Once you get the details of one or more CeMAP mortgage brokers either through research or recommendation, you can choose a good CeMAP mortgage broker based on certain factors such as personal interview, reviews from prior clients, CeMAP certificates, number of different lending institutions the broker works with, the broker’s service fee, etc.



It is always good to compare more than two CeMAP mortgage brokers to choose one who is more suitable for your needs and budget. More people are particular in getting mortgage advice only from qualified CeMAP advisors or brokers. This is because CeMAP qualified mortgage brokers are recognized by the Financial Services Authority. CeMAP mortgage brokers are fully qualified and certified and give you peace of mind for your mortgage needs.



They will provide the most professional, efficient and personalized service available in your areas. CeMAP mortgage brokers demand very reasonable service fees and guarantee to provide the best deals available in the market to suit your lifestyle and budget. CeMAP mortgage brokers can perform their service in flexible and compact manner. CeMAP mortgage brokers can access with wide number of banks, financial institutions and lenders easily. They will give you the best financial decisions for your mortgage needs.



They will help in easily removing the hassle associated with the mortgage process. A good CeMAP mortgage broker will be aware of even the fine details of the current mortgage market and can suggest you the best deal. Hence, find a CeMAP mortgage broker who best suits your mortgage needs and budget, and get yourself free from the burdens and head-aches associated with the mortgage processes.

Changing Rule of Mortgage Advisors

Legal and General is of the impression that, in order to come out of the negative market situations, mortgage networks must act fast. Duncan Crocker, M.D., of Intermediary Distribution at L&G says that, of late, the part played by a network has shifted to provide integrated and calibrated sales training to mortgage businesses. L&G is offering extra measures in times of economic downturn. It provides training to further hone the skills for multiplying sales.



 Not only it continues his operations with existing partners; but, L&G attracts new distribution channel partners.  Recent additions are as follows: •Â ÂMoney Quest Mortgage Brokers Ltd.•Â ÂTenet •Â ÂJohn Charcol•Â ÂThe Share CentreAccording to Duncan Crocker, L&G maintains a very broad gamut of distribution partnerships. Brokers, by aligning with L&G will have direct access to L&G’s Mortgage club, protection, GI and wealth management products.



 When mortgage regulation came into effect in 2004, L&G’s mortgage network became operational. The company, by name L&G Partnership Services Ltd. offers compliance services, support system and sales training to  mortgage advisors. L&G has one of the biggest mortgage clubs in the country. The number of members, crossing 10,000, the L&G mortgage club has the authority to deal with the lenders.



 As per Duncan, the club is a strategically critical outlet of the overall L&G package due to its links with the banking sector. Interactive Financial Advisors, Inc. (IFA) provides advice on a range of financial investment products. Financial Advisors analyse client liabilities, including mortgages, credit cards, auto loans and many more aspects of money lending and suggest an optimal debt structure as trained by IFA-implemented Independent Advisor liability management programme.



 As per Rick Peterbok, president of IFA, people are hellbent upon owning a house, even if the desire is beyond their normal financial means. That is the exact point where Independent Advisor liability management programme, gives us the tools and resources to recommend a refinance loan. The Financial Crossing Independent Advisor Programme provides the advisors the capability to decide about the mortgage plans. The advisors can fix the loan amount, fulfill, fund and close the transactions.



 They can help their clients directly and maintain control of client relations. Advisors can arrange loan for purchase of a new property, consolidation of debt and cash out analysis.  Rising mortgage defaults, foreclosures in addition to stagnation in the credit markets strengthen the case of liability management. According to the Federal Reserve Board, mortgage failures have increased by 92% - from $41 billion to $79 billion - almost doubled. Jacques Cureton, an advisor with IFA says that he has an effective method to attend to his client’s finances with an integrated process, thanks to Independent Advisor Programme.



ÂAbout IFA IFA is based in Oakbrook, Illinois. It is a SEC-registered, fee-based advisor firm. The basic principle of “Someone who cares” philosophy guides this organization. It provides objective and comprehensive advisory services. The company is headquartered in Palo Alto, California. It is the leading provider of liability management solutions. It presents objective and practical suggestions to optimize liabilities such as mortgages, home equity loans, car loans and credit cards.



 In 2008, Financial Crossing was rated among the nation’s top 50 service providers. Some Financial planners are more interested in avoiding messy situations than finding out practical solutions to problems of the clients. They are not prepared to make a holistic appraisal of the financial needs of their clients. If they spend time and energy to analyse the client’s whole financial structure, they may be able to provide more practicable, and easy-to-operate solutions. Some Financial planners just ignore their client’s wishes.



 Of course, this is a very negligible percentage.

CeMAP 3 Tips To Pass

1. Read the question to see whose shoes you should put yourself in. Sometimes it may be a mortgage broker; other times a building society manager. Put yourself in that person's shoes and try and imagine you are them before you answer the question.

2. Think generic products. Although your own product range will undoubtedly help you, the exam is based around generic products not specific ones which you may deal with.

3. Questions in CeMAP use very cautious lending policies rather than the very adventurous ones available in the market.



Unlike any other lenders on the market, the CeMAP paper operates standard income multipliers, it always charges higher lending fees, it doesn't lend to people with CCJs, it promotes both repayment mortgages and interest only mortgages with ISAs and endowments. It is the perfect lender and adheres to the CeMAP syllabus.

4. Be aware of the sections. Section A and B cover applying for a mortgage - all areas when a mortgage is applied for right up until the mortgage offer is issued.



Section C covers all things that occur after completion of the mortgage, invariably handled by the lender's head office or branches. Section C also covers a lot of Mortgage Conduct of Business Rules as do sections A and B.

5. Know that you have 2 hours for the whole paper but be aware of how much time to spend on each case study. In the paper you will have 6 case studies all consisting of 10 multiple choice questions. We recommend 20 minutes on each case study

6.



Revise your calculations before the paper. There will invariably be questions which require you to do a calculation. Percentage advances, higher lending fees calculations are just two examples

7. As you read the case studies, if they involve clients, try to imagine they're sitting in front of you and drift into this state. Read the case study again with the new image in your head. Jot down key words and phrases from the case study. Then tackle the questions. Really get a handle on the case study as every question will relate to it in one way or another.



8. Try Mind mapping the Mortgage Conduct of Business Rules to bring it to life and make it easier to study.

9. In a standard multi choice exam, like the CeMAP 1, its good advice to leave out questions you're not sure of and come back to them at the end. In this exam this is not so good, since all the questions relate to a case study which you have to swallow first before you answer the questions. By all means, leave out those questions you don't know the answer initially and come back to them before you move onto the next case study.



10. If you need glasses for computer usage, don't forget to take them. Sitting in front of a screen for two hours can hurt your eyes otherwise. If your company gives you free eye tests if you're a computer user, get one done before the exams and buy your glasses as soon as you can. Doing an exam with an excruciating headache is no fun.

11. Remember standard multiple choice question strategies. Read the question first twice without glancing at the answers; cover the answers with your hand if you have to.



12. Always relate the question back to the case study information as this will help you enormously.

13. Have you ever seen a line of dominoes on the floor where the first domino is toppled and this nocks the next one and so on and so on. I think the Guinness Book of Records states that the longest row of dominoes is in the thousands. Anyway this image will help you realise the way CeMAP 3 questions work. Many questions link to the next question. For example the first question may ask you to select an appropriate product.



The next question would then ask a question relevant to that product. Sometimes, if you're unsure of the answer to question one, either the question stem or possible answers to question 2 may jog their memory. So it's a good idea to look at the other questions for hints at the answers to others.

14. Use elimination with CeMAP for every question - it's the best technique going and can invariably lead you to an answer that you weren't too sure of. Even if you are fairly sure of the answer, eliminate the wrong answers as this helps you to keep concentration going.



Remember after 90 minutes, you will become tired and will begin to miss things. Things that are obvious when you have lots of energy just get missed when you're tired. Using elimination makes you focus on very option and not miss anything.

15. Keeping yourself active during the exam helps concentration. Take a blank piece of paper for each case study and make notes of the key information as you read the story. In the Pearson Vue system you receive a small whiteboard to write on which can be wiped clean every time you move onto a new case study

16.



Don't forget the older mortgage schemes and methods crop
up in the exam. For example stabilised and low start mortgages haven't been sold since the early 90's but people may still have them and thus they are tested.

17. Try a technique to forget the case study entirely. One delegate suggested you close your eyes and think of England/Wales/Scotland before you move on. Others have suggested some sort of visualisation, maybe, your last holiday lying on the beach.



Whatever you do, try to rid your mind of the last case study from your mind, before you move onto the next one.

Paul is an international speaker, trainer, author and coach based in the UK. He specialises in rapport selling and rapport sales management and can ignite his audiences large or small. Rapport selling gets more results.
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