Shock as BM Solutions embraces sourcing systems

BM Solutions made a complete U-turn on its historically negative view of sourcing systems last week.

First it confirmed industry rumours, exclusively revealed by Mortgage Strategy Online, that it had joined Trigold’s Enhanced Non Conforming system. Trigold ENC is heavily backed by Abbey whereas HBOS is one of the primary backers of arch-rival Mortgage Brain.

When ENC launched, BM Solutions caused controversy when former bosses Michael Bolton and Alan Cleary were openly “unimpressed” and saw little point in joining. The addition of BM Solutions means over 95% of the market now supports ENC.

Bill Safran, CEO of Trigold, says: “We regard it as a major coup that BMS has chosen to join ENC.”

HBOS has also agreed to verify all product information for its five mortgage brands on the four leading sourcing systems, M2000, Trigold, Mortgage Brain and MortgageLink.

HBOS will continue to guarantee the online KFIs generated via its own web-based systems.

Nigel Stockton, managing director of HBOS Intermediaries, says: “We will work with the sourcing industry to develop a compliant solution that delivers what intermediaries need.”

Sean Hornsby, managing director of M2000, says: “This is extremely positive and shows HBOS has recognised that most brokers will continue to use sourcing systems despite what lenders do in terms of website development.

But Frank Eve, director of Frank Eve Consulting, which has been working to develop open standards in the UK with Origo, says: “If there were open standards whereby brokers could get direct access to lender data, verification wouldn’t be necessary. The cost of doing it through an Origo-sponsored forum would be small in comparison with the cost of manual verification of data.”