Distributors can now access the lender’s system, allowing them to produce KFIs and manage loan applications from submission to completion.
Previously the packager had to rely on the regulated intermediary to prepare the KFI for their client.
Gavin Diamond, finance director at Cheval, says the firm has been receiving a growing number of regulated deals from packagers, but this has presented some problems as many firms are not regulated themselves.
He says: “Now unregulated packagers can log on and prepare a KFI on behalf of the regulated broker, enabling the packager to maintain control of the entire application.
“The onus still remains on the regulated intermediary to present the KFI to their client and provide any advice.”