A common system is the way forward for the market

From Danny O’Sullivan

Richard Griffiths is right to point out that sourcing systems are already obsolete and non-compatible with many lender websites.

He is also correct in saying that a web-based solution for brokers is the only one that makes sense.

But one important piece of the jigsaw remains, will lenders cooperate? Haven’t there been previous attempts at imposing technological standards in search of a common broker portal?

If lenders wanted to go to market cheaply they could have cooperated in building a common access point for all broker-derived applications. Instead they have built their own websites which range from the sublime to the plain boring.

If all of that money had been put into one common system we would probably have a system that provided instant offers from the majority of lenders and seamless cascading.

You would also be able to effortlessly approach more than one lender simultaneously to assess a case finally bringing to maturity the idea of mortgage bidding.

With such a system lenders could focus more of their resources on product excellence and brokers could focus more of their time on achieving advice excellence. After all companies don’t sell their shares from purpose-built websites but use the Stock Exchange.

Of course there will be winners and losers. I can understand why big players do not want to provide an open platform that allows any new entrant to become an instant equal but this hasn’t stopped GMAC-RFC and edeus from trying.

Surely it is better to reduce everyone’s costs and share the benefits between all shareholders than hold back for fear of upsetting the status quo.

Danny O’Sullivan
Stirling Partners Finance
By email