Monday, 10 September 2007

Bond Originators - Is Extinction on it's way?

DYING DYING - NEVER, Alive and kicking man!

Questions I've heard frequently in recent weeks:

Are bond origination services feeling the brunt of the NCA?
Is it the end of the road for the bond originator?
Will banks take over the bond business?
When will bond originators cease to exist?

To be totally honest, I think it's the beginning! And please stop bringing all this negative energy into my SPACE people, it's not good for business ;-)

Really though, what I do think is that South Africa is going to sift out the little originators from the big originators. I believe that the bond originators that did no prepare for the changes the National Credit Act was going to bring to this country and home financing will be the ones and are the ones that are taking heat and feeling the strain. It's thrown a spanner in the works and they don't know how to deal with certain issues...

One reason I firmly believe bond originators will stay around and continue to be the number one source of bonds for banks in South Africa is due to the fact that so many real estate companies own a share in the bond market. For example Pam Golding and Mortgage SA. The reason they separate the two is so that Real Estate agents can focus on selling property while the bond originators can fight for weeks with banks to get bonds through :-). Yes, believe it, there's always a fight!

The fact is, if you can't afford a place, you will not get a BOND. If you can afford it, you'll get one! That's how it should've been from day one! That's how, I HOPE, it will stay!

What do you think???

Is the end near, or is it the beginning of a NEW ERA IN ORIGINATION!


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