The subject has been widely discussed by specialist packagers, and rightly so. It is their knowledge of the market that will leave them best placed to support intermediaries in handling the increased regulatory burden. Particularly so when it comes to determining the right outcomes for a client looking at a remortgage versus a second charge, or further advance.

But technology providers, and particularly mortgage sourcing companies, have been quiet on the subject of the MCD.

In recent years, a number of specialist packagers have developed their own secured loan sourcing systems, encouraging intermediaries to use this alongside their normal mortgage sourcing system, re-keying the same client data into both. This may have worked well as a marketing and lead generation tool, but intermediaries have often questioned the independence of such solutions, developed and controlled as they are by the packagers themselves.

The natural progression, driven by the MCD, will surely be for mortgage sourcing systems to develop secured loan and bridging sourcing to sit within their own platforms, delivering to intermediaries a truly independent analysis of the correct option for each client, regardless of product type.

Not only would this benefit the intermediary, but those packagers who have chosen not to develop a sourcing system would have a technology partner to support their internal product selection processes, and improve their own compliance with the MCD.

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Seems a win-win to me.

James Tucker is managing director of Twenty7Tec

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