DA brokers miss out on club products

Just before Mortgage Day, many lenders stopped product development and some even repriced upwards so that reduced demand would let them develop technology to cope with regulation.

The good news is that most lenders have put in place systems which allow them to deal with appointed representatives of networks so the correct processes are followed for payment and administration. I say most, as some still struggle to stop ARs of one network using the exclusive products of another.

But what seems to have been overlooked is easier access for directly authorised brokers. The launch of our mortgage club has been an eye-opener about how difficult lenders find it to set up access for DA brokers.

We have been designing a process flow for DA brokers similar to the one we use for ARs. The variation in lender systems is vast. Some allow access based on a drop-down facility with all accepted clubs. For example, with BM Solutions DA brokers see one of our exclusive products and when looking to use our mortgage club, key in MortgageBox or select it on the drop-down. That’s it. BM Solutions allows this because MortgageBox is an accepted club if the broker has registered with it before. Another group of lenders wants to limit access to club routes. This is often to do with the constraints of the lenders’ systems. In this situation, brokers need to go into the lenders’ systems and change their access routes or register as users of the club route.

The final group are lenders whose systems are more designed for consumers than brokers. Here, DA brokers are treated like they are not known to lenders when wanting to access a new or different club route, despite the fact they may have been placing business with the lender for several years. The lender not only makes them register but also asks for information such as bank account details.

Brokers are bemused because they might have been paid that very day by the same lender for a case.

If a business consultant was looking on at the mortgage industry they would be shocked that in such a competitive market lenders make access for brokers so difficult. Have lenders got their Mortgage Day investment in technology wrong? Are brokers missing out on club products and services if they struggle to register for certain access routes? The answers are obvious.