TMPE2018: Mortgage brokers could offer white label advice for lenders – McDermott

TMPE2018: Mortgage brokers could offer white label advice for lenders – McDermott

 

Seb McDermott, CEO of Koodoo, also suggested UK Finance or another industry body may be best to co-ordinate a lender hub for speeding up application decisions.

His thoughts were echoed by Legal & General Mortgage Club director Kevin Roberts, who added there was a demand for this approach.

Speaking at the Manchester event, McDermott, who was previously CEO of Dynamo Mortgages, highlighted that brokers were already considering working with lenders.

“Speaking to one of the big broker firms, they were talking about how lenders have advisers as well,” he said.

“So you could get to the place where brokers offer that advice on a white label basis and push deeper into the underwriting process.

“You might find that if brokers are equipped with technology and there’s a much more seamless between broker and lender you see that divide going away,” he added.

 

Central lender hub for DIPs

Where the advancement of technology was concerned, McDermott suggested there were a few front runners but there was a bit of a Mexican standoff until one lender moved first.

“We need an industry body like UK Finance or another organisation that can coordinate a multi-lender hub where the lenders can agree a common set of questions at least for a decision in principle (DIP),” he said.

“That would be something where you could get a real time response in the application process and then we’ll see how it works for a while and then build from there.

“I’m hoping [throughout] the course of 2019 we’ll see that emerge and then it will become common place in the following five years,” he added.

L&G’s Roberts, who was chairing the session, agreed, adding: “I’m sensing some of the newer lenders and the digital ones certainly wanting to do that.

“The big six maybe they want their own tech journey, but I think there’s an appetite. When it will come and what it will look like I’m not sure – but I think it’s coming.”

 

Read and watch video of all our TMPE coverage on the Mortgage Solutions website.