Why are advisers still using paper applications in the digital era?
Our commentators tackling the question this week are:
Sally Laker, managing director, Mortgage Intelligence Holdings
Terry McCutcheon, CEO, The Finance Planning Group
Ian Andrew, managing director of group intermediary sales at Nationwide
Sally Laker, managing director of network group Mortgage Intelligence Holdings
We are in an era where quality is key to ensure a speedy application process and a good relationship between lender and broker. In fairness this benefits both, as the broker looks good, and the lender has a more cost efficient, quality process.
I’m sure the majority of brokers prefer online applications because by the very nature of paper applications, it is easy to miss off information. Whereas online generally you cannot proceed until all the information is included, and this speeds up the entire process. However there are specific application types that are paper only, such as equity share, keyworker schemes, New Buy, large loans, multiple applicants, to name a few. The temptation is to submit with information missing, hoping they will be part processed until the rest follows. This will create delays awaiting the information, and phone calls back and forth.
So Nationwide are making it clear that the missing information must be added before the case can be processed and no one is under the impression that it is already in the system. With so many rate changes and criteria changes every day, it does make sense to encourage full information upfront for a more speedy and accurate process.
Terry McCutcheon, CEO, The Finance Planning group
The Nationwide on-line application is one of the best in the industry and mortgage advisers can generally submit about 90% of their new business through it because it is easy to use and you can print your client’s offer online.
However, not all mortgage applications are straight-forward and, to their credit, the Nationwide still allow for more diverse types of applications, such as applications for more than two borrowers, NewBuy, Key Workers, and Shared Ownership applications.
The good news is that it is not a simple case of the computer says “No!” Rather than turning these applications away. The Nationwide currently allows for these applications to be submitted on paper. Going forward, I understand the Nationwide is developing their online system to be able to process these more unusual types of application online.
On the subject of quality, I agree with the Nationwide that incomplete paper applications should be returned. The Finance Planning Group, working closely with the Legal & General Mortgage Club to continually improve quality, fully support the Nationwide in our common pursuit for higher standards in the industry. To help improve standards further, I would suggest that the Nationwide rewards those networks with the highest quality applications with enhanced procuration fees.”
Ian Andrew, managing director of group intermediary sales at Nationwide
It is a combination of certain borrower types not yet available on MSO and inertia from brokers who continue to use paper applications rather than online applications. But regardless of the reason, around 40% of all current paper applications are incomplete, and therefore they cannot be processed without our service centre staff chasing brokers for the missing information that is necessary.
This negatively affects our ability to process cases for brokers who take the time to send us the full information required. We have given brokers two weeks notice of our intention and will be working with them to ensure that any disruption they may experience is kept to an absolute minimum.
Since we announced this change in process, the response from the intermediary community has been overwhelmingly positive in favour of the move, with most brokers supporting our stance.
Our objective is to increase standards and improve service levels for brokers and so we think this change will allow us to achieve these important objectives. Brokers who have any concerns about the impact should speak to their local business development manager for more information.
