TFC Homeloans stands tall in tough packager market

TFC Homeloans, the packaging arm of the Orbiter Group, has moved to reassure intermediaries and lenders of its longevity in the market at a time when many packagers have been forced to close for new business due to the credit crunch.

Recent weeks have seen a number of high profile packagers shut down due to the unprecedented difficulties in the credit markets and the resultant pressure on lenders, criteria and procuration fees. Despite the tough market TFC Homeloans has reported steadily growing sales figures with new applications up 30% in the last month.

Andy Brown, Managing Director of Orbiter Group, said: “This has been an incredibly tough year and it has been very sad to see what has happened to some of the lenders and packagers with whom we have worked so closely in recent years. I’m happy to report that TFC Homeloans finds itself in a more positive position than most in the current environment. In recent months we have acted quickly to manage our cost base, have accelerated the development of our technology, and have focused on offering a competitive proposition to intermediaries including free legals and a fixed £149 application fee. Another area that I feel has been key is that we do not have a large network of satellite packagers to impact on our cost base in the same way other large packagers did.”

In April TFC Homeloans was announced as one of just 7 packagers selected to remain on the Sesame panel, and this has also boosted business volumes. Perhaps more significantly, however, is the fact that in March 2008 TFC became part of the Orbiter Group.

Brown cites this as a key strategic development: “Forming the Orbiter Group was a line in the sand for TFC as it made clear that packaging was no longer the focus of our business. TFC is now a supplier of packaging services to a technology-led group of companies and this is a model we believe to be sustainable in the new market landscape that is developing.”

In recent weeks Orbiter Group has reported various positive developments including reporting on the success of its specialist mortgage sourcing engine in its Gravity system for packagers, the launch into pilot of the broker-facing Orbiter sourcing, processing and compliance proposition, and an increase in business volumes at TFC Homeloans.