As you may have read on Mortgage Solutions recently, HML is being acquired by Computershare.
While completion of the deal is still subject to regulatory approval, I am delighted that Computershare and HML will be working together. It has made clear that it wants to significantly develop and invest in us, and we only have to look at its US-based mortgage servicer Specialized Loan Servicing to see the evidence of this commitment for ourselves.
Positive customer feedback for the MMR
It has certainly been a positive year for HML, and I’m sure other mortgage servicers are also witnessing an upturn of optimism in the market. While the Mortgage Market Review (MMR) has been touted in the mainstream media as a major headache for consumers, our mortgage advice subsidiary, Specialist Mortgage Services, has seen the opposite.
It has handled a high volume of calls from clients’ customers who want to take mortgage advice regarding contract variations. In some cases, we have declined variation requests due to various concerns but consumers have been very understanding about this. They realise that the responsible lending checks are for their benefit. I think as a sector, it is fantastic news that we are further embedding a culture of ensuring a mortgage is affordable and right for a customer’s needs.
Advanced analytics
We have seen a significant increase in our standing in the market as a result of our advanced analytics capability, developing our thought leadership.
Aside from our data having been used on BBC Breakfast and BBC Your Money. We continue to produce regional statistics that help mortgage brokers, lenders and others in our industry shape their services accordingly.
For example, some of our most recent regional data shows that over 188,000 former mortgage holders in the UK could still owe their previous lender money. Many repossessed Britons do not realise that they may still owe their former mortgage lender money if the property sold for less than their mortgage. We estimate this shortfall debt problem could affect 83% of repossessions in the UK.
This, along with our regional arrears and repossession data, can help mortgage brokers and lenders tailor their products and services accordingly. Understanding the regional breakdown of arrears and repossessions can help brokers see the full picture of clients in their area.
It can also shape client contact strategies. Brokers in parts of the country where repossessions and arrears are higher may want to contact their clients more frequently to check their products work for them.
Appropriate customer outcomes
I’m sure the continued drive by the Financial Conduct Authority for appropriate outcomes for customers is viewed as a positive development by all of us in the mortgage servicing sector. HML continues on its journey to ‘Destination 100%’, where we are striving for a total quality concept in our sector.
I think a move away from being process-focused to outcome-focused has been a key development within the mortgage market over the past year.
With mortgage lending levels expected to continue to climb this year, I believe there could be further opportunity for lenders to progress customer service and tackle increased pressure on resources through outsourcing the mortgage origination process. Servicers are no doubt ready for this challenge.
Nigel Turner is chief commercial officer at HML
