The Mortgage Trading Exchange is to allow intermediaries to gain key facts illustration (KFI) documentation directly from lenders, so as to avoid problems with penny accuracy and compliance.
This function, called the Compliance Trading Exchange, will ensure the KFI a broker gives a client matches the offer given by the lender, both in terms of the numbers quoted and the terminology used. Providing the KFI direct to brokers will not be mandatory for lenders using the system, but Mark Lofthouse, chief executive of Mortgage Brain, said he expected many to take up the opportunity.
The Mortgage Trading Exchange launched last week, with lenders Alliance & Leicester, Halifax and Northern Rock able to complete mortgage applications and offers over the system. Other lenders including NatWest, RBS, UCB and Woolwich are making their systems compatible as quickly as possible.
Lofthouse said: ‘This is a major opportunity for the industry as the Mortgage Trading Exchange streamlines the mortgage application process across the board. The message from us is clear ‘ e-trading is here to stay.’