But I am surprised 24% say they are experiencing difficulties in obtaining Key Facts Illustrations from lenders. I remember that in the summer of 2004 lenders were racing to get their KFIs to market and the trade press was awash with stories of lenders releasing these documents. Why is it that obtaining a KFI is still such a challenge?The fact is that lenders have complicated something that should be straightforward. For example, brokers are challenged by the plethora of places a KFI can reside – on a lender’s website plus a variety of sourcing systems. It’s a little easier for those who have chosen the appointed representative approach. Principals will have invested extensively in compliance and sourcing systems delivering KFIs and IDDs, taking the adviser through the process. In other words, the adviser has a point of commonality for the sourcing and selling of products. The situation for those directly authorised is not so clear but some will have opted to deal with packagers that offer a similar portal to those available to ARs. And DA brokers are not subject to lending panels so they can search the entire market. The problem is that with the process of obtaining a KFI so uncoordinated it’s no wonder 24% report problems. Lenders should ensure their products are available on as many recognised sourcing systems as possible. As back-up the broker should be able to access the lender’s website to obtain the KFI. It’s fundamental – no KFI, no sale. If the intermediary can’t access product A, product B will be sold with caveats that the substitute product suits the client’s needs. Did the 24% that reported problems sell substitute products? If that is the case, some lenders are losing significant amounts of business, not to mention stretching the loyalty of supporting intermediaries. In the absence of more coordination – and that probably means some form of centralisation – lenders must take a 360 degree approach. Some 12 months into regulation, so many intermediaries should not be experiencing difficulties with something that should be so simple. Memo to lenders: let’s make it an new year’s resolution that all intermediaries can obtain the KFIs they require.
Accord Mortgages says sales of its recently launched sub-prime credit repair product range are going through the roof. The range is available on a direct to lender basis and offers specialist underwriters brokers can call direct. Accord says it guarantees that if the broker’s client makes all payments due on time during the special product […]
Twice as many women as men now make the household mortgage decisions and the face of the industry is changing to reflect their growing economic power, says Natalie Martin
The Mortgage Times Group saw its application figures soar from 92m to a staggering 250m per month between January and September this year. These figures are based solely on packaged business, though the company has also seen an increase in its mortgage club business. With three months of the year still to go, the packager […]
Alan Greenspan, the chairman of the US Federal Reserve who was once described as “the greatest central banker who ever lived”, is to be replaced in January by former Federal Reserve governor Ben Bernanke. Greenspan has been in charge of US monetary policy for 18 years, and has seen two stock market crashes and two […]
Jelf Employee Benefits closely examines healthcare provision and challenges within Nigeria. This will be of particular interest to HR decision makers with employees based in Nigeria, and assesses the environment, risks, facilities and safeguards that are relevant to organisations that are actively deploying expatriate staff in this location.
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