Brokers should know about lenders’ processing times

From Keith Butler

I read the Star Letter in the May 22 issue of Mortgage Strategy regarding mortgage processing service standards with much interest.

If service in general – and the speed at which offers are issued in particular – is part of the process of selecting the most suitable mortgage product as it should be, is there not a need for mortgage introducers to be aware of information such as average time from application to offer? And if so, should there not be an obligation on lenders to provide this to mortgage introducers?

The last benchmarking figures I saw showed an average application to offer time for the industry of around three weeks. This is appalling. What do lenders do that requires an average of three weeks? And I ask this not as some naive, idealistic individual but as somebody who has many years’ experience of successfully running mortgage processing operations.

Lenders invariably make statements to imply that their offers go out within a few days but the facts rarely support such assertions. So are there any lenders willing to publicly state their average application to offer times and allow these to be independently verified? I await replies with interest.

Keith Butler Mortgage analyst

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