MortgagesFeb 19 2015

Greater efficiency needed in mortgage applications

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Greater efficiency needed in mortgage applications

Mortgage intermediaries have called for more lenders to switch to paperless systems in order to increase transparency and efficiency in mortgage applications, according to Iress’s Intermediary Mortgage Survey.

The ability to scan and attach proof documents was cited as an important aspect of application efficiency by 90 per cent of mortgage intermediaries – however, only 43 per cent of lenders provide this service.

The survey, which analysed the responses of lenders comprising 64 per cent of the intermediary mortgage market and 120 intermediaries, found up to date and detailed case tracking to be a top priority. Only one third of lenders currently provide milestone updates through email, although 67 per cent support real time tracking.

As a result of the Mortgage Market Review (MMR) the amount of documentary evidence that lenders require to support applications has increased 39 per cent, making a paperless process a supporting factor towards a faster and more easily tracked application process.

Peter Williams, executive director of the Intermediary Mortgage Lenders Association, said, “Iress’ research clearly signposts the improvements that are most valued by brokers, and will help to focus minds on the areas that can make the biggest difference to the broker and consumer experience.

“Technology is developing all the time, and as lenders work to adapt their legacy systems, we can expect to see more integration of scan and attach facilities into one application process. However, the challenge is not just the technology itself but how it can be integrated into credit and fraud avoidance processes, which means it may not always possible to meet intermediaries’ every need.”

Of the intermediaries surveyed, 53 per cent saw the provision of a single online status view of all their cases as a key requirement. Although 67 per cent of lenders support real time case tracking, the provision of regular proactive updates is not as widely available.

Daniel Bailey, mortgage broker at Middleton Finance, said, “As a broker, I am striving for a paperless office. Some lenders are still stuck in the dark ages and will only accept documents either through fax or a paper application form through the post. If more lenders accepted emails or allowed you to load up documents directly to the lender’s website we would see an increase in efficiency.”

A daily email update was stated to be of value to 34 per cent of intermediaries, but only 10 per cent of lenders offer this service and 43 per cent provide automated requests for information or documentation.