TFC Homeloans is hitting back against the doom and gloom commentators who, given the current market conditions, are again predicting the demise of packagers.

During this period, when the market is confused and uncertain, TFC Homeloans believes that it is important to choose your strategic partners carefully. TFC will therefore shortly be circulating details of the financial strength of our business to our lender and network partners and are encouraging their peers to do the same.

Brian Pitt, non executive director at TFC Homeloans comments "It is clear that those businesses that have been run on a shoestring over the past couple of years are now going to struggle as the credit crunch takes it toll. I have long believed that in any market you need to be strong financially with deep pockets to protect yourself though the difficult times. Alternatively, you need to be small and specialist with controlled overheads and the ability to react to market conditions quickly and effectively. TFC Homeloans is in the former category, however I believe there are a number of packaging companies that are somewhere between the two and they may not survive the next 6 months. In my opinion there are no more that 40 genuine distributor packaging companies in the UK and the rest are brokers who package, and in a lot of cases poorly too. These companies cannot offer the same service as their larger more efficient competitors, and they will ultimately be shunned by lenders who want to drive efficiencies through a restricted number of distribution partners."

The 'Future Landscape of TFC Homeloans' document will be sent to key partners in the coming weeks and will highlight the financial strength of the company over the last 12 months as well as providing future forecasts of long term growth based on the steps which have been taken to ensure stability during these difficult times.

Pitt continues "The transparency of our final position will reassure our broker and lender partners that TFC Homeloans is in an extremely strong position within the market place and should encourage them to align themselves with us in order to see out these difficult times. Financial stability should feature in any broker or lender decision when choosing which packager to align themselves to. I urge brokers to ensure they are dealing with financially sound businesses going forward – I would not want to be dealing with a packager where there was any doubt whether they would be able to meet procuration fee payments in this market".

TFC has recently introduced a new DIP and case processing system called "Gravity", now being used by 75% of its brokers. In addition to offering quick and accurate results, "Gravity" is one of the most intelligent mortgage software systems available offering built in affordability calculators, KFI generators and direct links to lenders' systems. TFC Homeloans is confident that "Gravity" is the most accurate system available for sourcing sub-prime mortgage products, meaning TFC’s brokers will receive a fast and efficient service backed up by market leading technology. Together with the financial strength already mentioned these are compelling reasons to consider TFC Homeloans as not only one of the leading distribution businesses in the mortgage market today, but also one for the future too.