SMS launches independent case checking for panel lenders
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Solent Mortgage Services has launched a new file checking service to assist its panel lenders to meet expected affordability, product development and governance proposals under the Mortgage Market Review.
Launched in association with Compliance Checking, the new facility means that all applications received from intermediaries by SMS can be independently checked through a product suitability and grading assessment.
Lenders can remotely access the system to check individual cases and analyse data as part of their product performance and oversight arrangements.
Ian Balfour, CEO of SMS, says: “This is a quantum leap in the evolution of intermediary lender hubs like SMS.
“Lenders can now, with confidence, turn again to the intermediary market, knowing that by using SMS as a conduit to the intermediary market, they can guarantee receipt of independently audited cases, which have been validated for product suitability as well as affordability and fraud prevention.
“It provides a cost effective process through which lenders can accept intermediary business and demonstrate compliance to their new responsibilities under the MMR. It will also help networks and firms looking for greater monitoring oversight of individual advisers.
“This is a significant step in the development of the ideal interface between lenders and the intermediary market.”
Terry Young, managing director of Compliance Checking, says: “We are delighted to be working with SMS, which has a long pedigree of innovation in bringing lenders and intermediaries closer together.
“The file checking system we have developed is integrated into SMS’s online and office systems, so that intermediaries can have confidence that their cases will be approved faster and lenders have an innovative solution to help them comply with the proposed new rules.”
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Readers' comments (4)
Damien Brassneck | 20 Oct 2010 12:25 pm
Can't see lenders buying this one as they are likely to be carrying the responsibility for assessing affordability.
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Ian Balfour | 21 Oct 2010 2:11 pm
Lenders are going to bear the responsibility, but a facility like this, provides much needed reassurance because cases presented to them have been validated for product suitability as well as affordability and fraud prevention independently. For lenders, it means that intermediary business is not the perceived risk that it could be under the new rules and more importantly by using SMS as a conduit, they have control of both quality and volume in a cost effective way.
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Damien Brassneck | 25 Oct 2010 11:46 am
A bit like Lender in-house underwriters in Packagers you mean...that really worked didn't it Ian!
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Anonymous | 26 Oct 2010 1:05 pm
Ian, I can certainly see some big plus points of this for the lender if done correctly, particularly for fraud prevention although packagers do not exactly have a whiter than white reputation for this. I would question why affordability is a big issue as this is very easy for the lender check, unless you are going to independantly verify the salary information? Also, how are you in a position to validate for product suitability unless you are going to have qualified and regulated individuals speaking to the client? I am not being negative, I am just intrigued as to how this might work.
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