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A digital mortgage process will need intermediary and lender co-operation

by: Mark Dryden, business development director at 360 DotNet
  • 18/05/2017
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A digital mortgage process will need intermediary and lender co-operation
Coming from an intermediary perspective, there’s always something slightly sinister when lenders talk about the digitalisation of the mortgage process.

It’s a bit like inviting the turkey to a meeting about Christmas dinner preparations where discussions of longevity pass over the head of the complacent and delicious.

Self-service options are understandably very attractive, but are there more foundational elements that can benefit both lenders and intermediaries?

The context of a digitalised mortgage process is not restricted by available technology, as integration to allow the exchange and flow of data has been a staple of the software world for many years.

It just requires the holders of that data to allow access and realise the benefits that such investment can bring.

 

Open Banking innovations

In 2018, changes in legislation will open the door for permissive access into current accounts, which has the potential to bring some genuine process innovation to the market namely around the requirement for bank statements.

While there are services that can provide this data, there remains trust and liability issues, and it still requires lender verification.

Yes, when electronically received either by the client or otherwise, bank statements are downloaded, printed for the adviser to sign, scanned and uploaded to the lender.

Somehow that feels a very broken process and carries no advantage to the lender who will also process and qualify the same data.

 

Is it trustworthy?

With permissive access that all institutions will be supporting in 2018 and beyond, can such bank account data be provided electronically and marked as trustworthy and verified from its source, through the intermediary and onto the lender?

What if the intermediary captured this permissively obtained data through a client fact find, which in turn automatically filled budget planners and verified incomes? The intermediary could frontload their client engagement and qualification activities to collect this data, then pass across with the application and satisfy the lender on how and where the data was sourced.

It should also be noted that many lenders would also be supplying this data if they have current or saving account services anyway.

Digitalisation in the mortgage world is likely to be driven by the lenders, but with intermediaries already establishing trusting digital relationships with their clients, the dawn of true frictionless processes and efficiencies starts with the entire ecosystem identifying opportunities outside of their individual boundaries.

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