When looking for support and development opportunities to help them go further, mortgage brokers and advisers have two paths to pursue, laid out before them. One such path is to become a member of a mortgage network as an appointed representative, while the other will allow you to join a mortgage club as a DA firm (directly authorised). While choosing to operate as an AR as part of a mortgage network definitely comes with its own benefits, the level of autonomy and flexibility provided through working with a mortgage club can be a huge asset to a firm. Here at TMA Club, we understand that the prospect of joining a mortgage club is one that takes a lot of careful thought and deliberation, and so to make your decision that bit easier we have put together this article. Here you can learn all you need to know about mortgage clubs, both the basics such as what they are and how they work, and some more unique quirks including what sets TMA apart from other mortgage clubs in the market.
What are Mortgage Clubs and how do they work?
The primary goal of any mortgage club is to help an adviser both retain and grow their business. How exactly a mortgage club does this will vary greatly between each firm. TMA Club for example features an exciting proposition complete with an innovative training programme, cost-saving technology solutions, flexible compliance support and bespoke relationship management. It is however, completely down to the DA firm to decide which services they want to use since they are not obligated to do business with a given mortgage club. In fact, they are free to do business with multiple mortgage clubs at any given time.
One of the biggest challenges facing an adviser operating in financial services is maintaining compliance with guidelines established by the Financial Conduct Authority (FCA), which is why many mortgage clubs go to great lengths to keep advisers updated with major changes and relevant documents. To ensure complete conformity with these guidelines, some principals will choose to join a mortgage network rather than a mortgage club.
What is the difference between a mortgage club and a mortgage network?
The key difference between a mortgage club and a mortgage network is the level of control they have over a firm. With a mortgage network, firms relinquish a degree of independence so that any procedures they have in place or communications they send out are approved in accordance with FCA guidelines. Obviously, this limits the amount of freedom and flexibility an adviser is able to operate with day-to-day. As a DA firm working with a mortgage club, advisers maintain complete control over their approach to compliance with the mortgage club instead taking a more advisory and consultative role. Any advisers choosing to work with TMA for example will be able to access our suite of compliance tools. Ready-made packages for comprehensive compliance audits, regular compliance bulletins and fraud updates, online learning and CPD courses are all available for use when you sign up with TMA.
What are proc fees?
Procuration fees, also known as proc fees, play a very important role for advisers in determining which mortgage club gets their business. A proc fee is the sum of money paid to a mortgage club, which is pre-determined based on the percentage negotiated by the club and the lender of choice. This is a key benefit as the mortgage clubs can negotiate better proc fee’s than a firm going direct. To download and view our procuration fees click here.
How do you join a Mortgage Club?
If the numerous benefits of working with a mortgage club interests you, it will definitely be welcome news to know that actually joining one isn’t all that difficult. This is especially the case when compared with the sign-up process for mortgage networks, which requires an extensive background check for the adviser and also for them to provide numerous documents and resources. Most mortgage clubs will have a relatively easy-to-find section of their website prompting you to ‘get in touch’ or ‘sign up’. TMA for example has multiple touchpoints located on our website so that you can easily locate our quick and easy request form. Filling out the form with a few personal details such as your name, email address, company name and location etc. will then prompt a call back from a member of our Broker Support Team.
Why join TMA Mortgage Club?
While TMA may be a mortgage club in name, it is so much more than that in practice. TMA can be the base camp for your business. Our mission is to provide our members with a bespoke consultancy service to help them go further, and adapt to the ever-changing market. Any mortgage broker or adviser looking to get more out of their conversations with customers could benefit from one of the many products or services we offer, which includes:
- Compliance – Bespoke compliance support packages based on your firm’s needs, so that you never stray from FCA guidelines.
- Protection – Prepare your customers for every eventuality. Write comprehensive business policies yourself or with support from our protection specialists via our referral service.
- General Insurance – Protect your customer’s most important assets with help from our 4 options.
- Technology – Enhance and simplify your sales processes with our cutting-edge, cost-saving technology solutions. TMA Members will also benefit from preferential rates via our wide array of technology partners.
- Events – Free and fully accredited events open to all TMA members and Directly Authorised advisers in the UK. An excellent opportunity for networking and sharing of best practices with your fellow experts.
- Lending – All your lending needs are fulfilled thanks to our extensive lender panel which is continuing to grow even now.
- Broker Support – Our highly experienced broker support team is always on call to find a solution for your mortgage customer queries.
Become a member now
Discover what TMA is all about now and see how your Directly Authorised firms can go further and achieve their business ambitions. Sign up now by either registering your firm or adding a new individual to your existing firm.
