View more on these topics

Sourcers’ service is slammed

Sourcing systems and lenders’ online applications are still not providing the service that intermediaries expect.

The panel of seven at last week’s Money Marketing round table agreed they do not have faith in the efficiencies of sourcing systems, particularly for the sub-prime sector.

Advantage Home Loans managing director Keith Dearling does not believe advances in sub-prime mortgage sourcing go far enough to service intermediaries.

He said Trigold’s enhanced non-conforming system takes into account underwriting criteria of each lender’s portfolio and provides a fact-find, data verification and KFIs but he said the system requires a huge amount of information from the client which has to be input in real time which is unrealistic for intermediaries and clients who may not have all the details in one meeting.

Mortgage 2000 managing director Sean Hornsby said intermediaries have lost sight of the original purpose of sourcing systems and said they should be used purely as aids. He warned that intermediaries must be aware of the legal responsibility they take on themselves by going through a third party to source mortgage information.

Sourcing systems were born out of best-buy tables and Hornsby said they should be used for reference only and not as tools for advice.

Bradford & Bingley head of product operations David Bitner said his lack of trust in sourcing systems has led him to recommend B&B advisers to go direct to the lenders only.

Purely Mortgages chief executive Mark Chilton echoed Bitner’s response to sourcing systems but also said he believed that lenders’ systems are still inefficient.

He said that research he has conducted has revealed that ineffective and disappointing technology systems are costing his firm between 15 and 20 per cent in product activity. For example a recent application through Nationwide took one of Chilton’s colleagues two hours to process.

Newcastle Mortgage Services sales director Tony Ibson said a solution could be the advent of the Pisces system, a cross-platform protocol to enable different systems to communicate. He said this would provide standard documentation and conventions across the whole mortgage process. But Chilton said the erosion of big lenders’ brands through the use of the system would be unappealing to the bigger players.

Alliance & Leicester head of intermediary mortgages Mehrdad Yousefi said: “There does not appear to be a common meeting of minds to have an expert, common trading platform. The residential mortgage market is arguably the biggest sector of the financial services industry but it is very poorly serviced. The sourcing systems themselves simply did not have the right financial capital to take on this financial undertaking.”


Beachcroft Wansbroughs says KFIs result in information over-load

Prescriptive rules mean too much information in key facts illustrations according to Beachcroft Wansboroughs Consulting.Information over-load rather than length is the main problem with KFIs according to the financial services consultancy.The independent analysis of 44 KFIs provided by 22 mortgage firms follows reports of excessively long illustrations.The consultancy concluded that the objective of enabling borrowers […]

FundsNetwork joins forces with NU to offer investment bond

FundsNetwork has teamed up with Norwich Union to offer an onshore investment bond as part of the development of the supermarket platforms wrap service.Under the agreement, FundsNetwork will offer a single-premium insurance investment bond provided by Norwich Union later this year. It will provide the opportunity to invest in the range of mutual funds from […]

Investment trust Isa purchases increase by 2 per cent

The total purchases of investment trust Isas increased 2 per cent in 2004 to 62.33m from 60.96m in 2003.The global growth sector was the most popular sector with investment trust Isa investors in the last quarter of 2004, accounting for 32 per cent of purchases, some 5 per cent of which were through financial advisers. […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm