My fellow Mortgage Strategy columnist Richard Griffiths pointed out in his column recently that in theory, Origo should be able to add considerable value to our industry but he feared rivalries and deep-rooted commercial interests will be an obstacle to the adoption of open data standards in the mortgage market.If this is the case then the mortgage industry and particularly brokers and distributors will have lost an opportunity to deliver better service to their clients and reduce costs for lenders at the same time. Lenders and intermediaries share a common agenda driven by regulation – the need for accurate product data and, in a market where margins are under threat, the need to reduce costs and provide better, more compliant, services to borrowers. These factors now drive the need for better understanding of e-commerce priorities and the integration of systems throughout the industry. Now is the time to eradicate unnecessary and time consuming processes. Griffiths is correct in that Origo can only act as a facilitator. It can provide a forum for intelligent debate on matters of mutual concern but it cannot energise the adoption of open standards on its own. It will need the commitment of the lender marketplace. The mortgage market differs from the life and pensions market in the nature of the lender community. Although there are more than 150 lenders the market is dominated by a small number of large institutions. These larger lenders have taken shareholdings in rival sourcing systems and trading platforms. These organisations have developed proprietary functionality and connectivity to lender systems and are understandably reluctant to re- engineer. Any initiative must recognise their respective market positions and aim to engage and foster support from them. Priorities and structure will have to take account of the position of these sourcing systems and platforms. The lender shareholders will need to feel confident agreed standards will not conflict with their commercial considerations. Lenders, in common with life and pension providers, have adopted a strategy of offering online services to advisers through their own extranets. Some see these as offering a competitive advantage and do not want to share this functionality on various platforms where the advantage may be eroded. But these systems may need to be coupled to ensure ease of use for advisers and distributors who access many such systems. They may also need to be deployed more widely as the mortgage market continues to adopt a multi-tied approach to distribution. This has been the experience in the life and pensions market. Any costs should be offset by the savings gained and the ability to use the same data standards over and over again. This is an exciting opportunity for the intermediary mortgage market but the real question is whether lenders will seize it.
From Gary Williams I am the victim of an incorrect KFI generated by a well known sourcing system. I sourced a product for my client and the KFI indicated a partial refund on the valuation fee. As this lender does refund valuation fees on certain products and the generation of KFIs on its website is […]
Abbey is offering people free mortgage payment protection cover for all new applications from today until the end of the year, with homeowners paying nothing for the first three months of cover.Research from Abbey reveals that homeowners in the UK are leaving themselves vulnerable when it comes to mortgage payments. Half of UK adults admit […]
Tory leadership hopeful David Cameron has questioned opposition to deputy prime minister John Prescott’s house-building plans. Speaking in Devon, Cameron focussed on the poor quality of life in built-up areas. He says: “It’s a scandal that in the fourth richest country in the world, we tolerate conditions that would have been unacceptable 50 years ago.”
Wright & Wright Solicitors have completed the first mortgage transaction with Beacon HomeLoans.Assisted by RAMP packagers and by Beacons Solicitors, B Legal, this completion marks the first of a number of pipeline deals that are coming to fruition since Beacon launched its range a short time ago.Julian Sampson, partner at Wright & Wright, says: With […]
By Denise Wond, Marketing Relationship Manager, Royal London Do you consider yourself lucky? I don’t; I never seem to win a prize in the raffle, if there’s a cancelled train it’s usually the one I’m meant to be on and don’t start me on last year’s holiday. On the other hand, when I think about […]
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