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Quality-metrics tables should be turned on lenders – Graves

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  • 14/01/2014
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Quality-metrics tables should be turned on lenders – Graves
Quality-metrics tables should be turned on lenders to highlight which are the most efficient at processing and completing applications said Mark Graves, head of network at Pink.

Graves argued shorter, slicker underwriting and pay-out processes deliver lenders greater profit margins which they could pass on to brokers in the form of higher proc fees.

He said: “At the moment the only activity undertaken to assess quality is lenders benchmarking advisers. We have no system with a common rule to benchmark lenders’ quality and how long it takes to process a loan.”

Metrics which are used to assess the quality of brokers’ applications include; application to completion, decision-in-principle to application and arrears performance – measures designed to make sure brokers are thoroughly assessing borrowers’ circumstances and providing the most suitable solution.

Graves said that as lenders are happy to tell networks how much of a broker’s business has been rejected they should be prepared to publish their own rejection rates and how long it takes to process a case from receipt to pay out, so lenders can be compared against each other to see which ones perform the best.

He added: “It would be interesting to see if lenders would be prepared to share that information so their quality is as visible as brokers.”

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