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Gen H to share borrower credit commitments to give brokers transparency

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  • 04/06/2024
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Gen H to share borrower credit commitments to give brokers transparency
Gen H will show mortgage brokers the details of their clients’ credit commitments during the application stage to give them more insight.

Gen H will inform brokers of any discrepancies found during the soft credit search when a decision in principle (DIP) is submitted. 

Previously, if an applicant failed a credit check, mortgage brokers would be unaware of where the discrepancy was. Gen H said sometimes a borrower only just fell outside lending thresholds, but in other cases, this was down to incorrect information on a credit file or a commitment that was due to be paid off before the mortgage loan started. 

Gen H said lenders usually told brokers their client did not qualify for a loan but did not provide further information. 

The lender said this lack of transparency caused “unnecessary back and forth” with business development managers (BDMs), underwriters and clients, which sometimes led to “stressful” and “costly” delays. 

The update will mean that if there is a difference found with a client’s declared credit commitments and bureau records that affects affordability, brokers will be able to see what this is and how much the credit commitment is. 

They will also be able to exclude a commitment if it will be repaid before the loan starts or the value is incorrect. 

Additionally, with this information, brokers will be able to give underwriters more context. 

 

‘Now we can treat brokers like equals’ 

Luke Calton, senior product manager at Gen H, said: “From first being conceived to final implementation, this feature took almost two years to release as we explored important data privacy questions. But in researching this with brokers, we saw how frustrating it was to encounter a ‘computer says no’ experience with the credit file. We have access to this information, but we were never able to openly talk about it with the customer’s best interests in mind.

“I’m pleased that, now, we can treat brokers like equals when it comes to the information we find on the credit report. This transparency is in the customer’s best interests, and I’m sure it will lead to a faster and smoother application process for all involved.” 

Will Rice (pictured), CEO of Gen H, added: “2024 is the year we’re doubling down on our relationships with our intermediary panel – and what better way than to ship market-first tools and innovations driven specifically by broker feedback? This launch was particularly complex as we were treading new ground in terms of data sharing and customer transparency, but if it helps our broker partners better serve their clients, it’s worth it.

“Our brokers should keep an eye out for many more exciting updates over the coming weeks and months.” 

Last month, Gen H adjusted stress testing to boost affordability.

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