Sourcing systems under fire

The industry’s main sourcing systems have come under fire for holding product providers over a barrel.

Last week, Simon Mouncher, operations director of em-financial, wrote to Mortgage Strategy about Trigold. Mouncher complained that despite paying the sourcing system high fees, lenders not only have to list products once they have been keyed in but also verify them.

Now Ernie Reeves, director of sourcing system Phoenix CPU, has accused the main systems of acting like a monopoly. He says lack of serious competition means providers have no choice but to have their products represented on the big boys’ systems.

But his comments have been dismissed by some of the larger sourcing systems, which insist there is healthy competition in the market.

Mark Lofthouse, CEO of Mortgage Brain, says: “We are competitive with rivals. Our customers use us because we provide good products and good service. There’s room for more players but they will live or die by their services just as we do.”

Bill Safran, CEO of Trigold, adds: “Trigold works closely with lenders and other product providers to ensure high quality service.”