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Brain loan data guarantee will ease advisers&#39 redress burden

Mortgage Brain is set to guarantee the accuracy of product information on its sourcing system by the end of the year, shifting the responsibility away from intermediaries, according to industry sources.

Brokers understand that Mortgage Brain is working on Project Trafficlight in a bid to become the first online sourcing service to take the burden of redress from the broker if mortgage information changes and a client is given the wrong details.

One industry source says he is “totally fed up” with the status quo in the market where brokers get blamed for everything and lenders refuse to take responsibility. He welcomes the move by Mortgage Brain to shoulder the blame.

The company is owned by HBOS, Alliance & Leicester, Northern Rock, Royal Bank of Scotland/NatWest, Woolwich/Barclays and Nationwide.

Mortgage Brain chief executive Mark Lofthouse says: “We cannot comment on market speculation. However, in our discussions with introducers, the accuracy of mortgage product information and its timely delivery is of paramount importance and Mortgage Brain does everything it can to ensure data accuracy.”

Riach Independent Financial Advisers proprietor Bob Riach says: “Anything that improves accuracy of data is welcomed but it depends on how good the guarantee is. And can they do it? If a lender withdraws a product now, there has to be some delay in updating the sourcing system.”

Broker club Mortgage Intelligence managing director Sally Laker says: “If they are going to guarantee accuracy, it will be a great comfort for brokers who pay the price if information is inaccurate. Ultimately, it is expensive for brokers as they may end up working for nothing if they have to pay redress and risk losing future referrals if they seem inaccurate in front of clients.”

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