Electronic trading platform IFonline is setting up a data management system which it claims will dramatically ease the compliance burden of lenders after mortgage regulation comes into force next year.
It says the system, which is due to be launched in late October, is designed to give greater control to lenders which are concerned that admin blunders by third parties under statutory regulation could leave them facing claims of non-compliance by the FSA.
If successful, the move could mean that lenders only have to ensure the accuracy of their product information on a single system as IFonline is pledging to farm out the data to any interested firms, including rival platforms.
Currently, lenders must check their product details on a platform-by-platform basis, leaving staff to monitor and update data on around 10 types of mortgage-sourcing software.
IFonline claims its new system – provided that most of the other platforms sign up to it – will save lenders from having to perform this task.
Marketing manager Richard Hurst says: “At a stroke, the system will solve an industrywide problem by removing 90 per cent of a lender's data compliance requirements under statutory mortgage regulation.
“It will allow lenders to comply with confidence as they can enter and monitor the information available to brokers themselves.”
Scottish Amicable national mortgage manager John Malone says: “With statutory regulation on the horizon this is the type of initiative brokers that like to see. I think it will not only make life easier for lenders but will also enhance the accuracy of the product information on the various systems.”