“We have simplified the management structure so that each of our core functions report directly to the Board of Directors. The prospect of developing an AR network caused complexity in our business. We have now taken steps to refocus our business on its core activity – mortgage packaging. We will not have an AR network as we view that as potentially competing with a large portion of our customer base. We will be the leading packager of niche mortgages – our new business team is widely regarded as being the best in the market and our packaging administration team are second to none.”
Asked about the press speculation that TMO would become a lender Mr. Grayson explained: “In fact, Venturion Capital has an application in to the FSA to establish a sub prime lender that will operate in conjunction with our fellow packagers in the Mortgage Distributors’ Co-Operative. TMO will continue to be exclusively a packager.
“At the moment the packagers create value for the lenders by distributing their product but the packagers are not properly rewarded for doing that. Our model will allow select packagers to participate in and own the value they create in the lender.
“We hope to announce full details of this project shortly once we have completed our applications process with the FSA.”