Mortgage facilitator Mortgage 2000 has launched an online mortgage administration system that will allow brokers to become de facto packagers.
Softpackaging.com contains product criteria and information from lenders, and allows advisers to maintain control of processing, including issuing references and other documentation. However, advisers will not be able to instruct the valuation.
Sean Hornsby, managing director of Softpackaging.com, said: “The valuation has to come through us and we still issue the instruction. The valuation will also come back to us and we will put it online but this will be the only element brokers do not control themselves.
“It will only be available to M2i network members, whereas our packaging arm M2 d&p is for everyone. This is due to compliance issues as lenders would not be happy to allow just anyone to issue references. This way M2i can be responsible for compliance purposes.”
Ian Balfour, director of marketing at Solent Mortgage Services, said: “It is a good idea. Brokers always feel they can process cases better than others and we are looking at doing something similar ourselves. However, I cannot see lenders ever allowing brokers to instruct valuations themselves because of the legal implications.”
The web-based system is free to advisers and will enable them to earn an extra £150 to £200 per case, but Hornsby denied it would mean the end for its packaging arm.
He said: “It gives M2 d&p more capacity, as it will be able to do more business without increasing the number of staff. Softpackaging.com will appeal to intermediaries that currently deal with packagers as it allows them to earn extra income for work that, in most cases, they are already carrying out.
“The beauty of the system means it will have a broader appeal. The main reason many intermediaries will not use a packager is loss of control and poor service.”
The system will be linked to the Mortgage 2000 sourcing system and will pre-populate clients’ details across to the new system.