Letters to the editor
Packaging, underwriting, fast track and more
Discuss industry topics, respond to letters, or start new discussions
Fast track shonullD conullnullnull
Sir,
nulltter of tnull montnull
There has been a lot of speculation following the
Mortgage Market Review regarding concerns an open letter to all lenders
over Fast Track mortgage applications and the Sir,
disclosure of clients’ income. From our perspective null have to ask what has happened to underwriting. null was once a skill that lenders took pride in whereas
Fast Track is predominantly in place to speed up now anyone wanting a mortgage is met with numerous barriers seemingly put there to prevent as much
the underwriting process for clients with a very business as possible. null it that the volumes you wish to do mean you have to decline more cases due to
high credit rating and a low loan to value. the spike in interest in nullnullnull null think we have a right to knownull
Lenders have invested millions of pounds in nullready this year we have had to rebroke many cases due to the apparent desire to turn away
their technology and risk assessment programs business. The reasons vary from case to case but we have already had question marks over
(credit score cards) which has resulted in only affordability due to the client paying into a pensionnullproperty locationnullbonusesnullthe age of
the very low risk loans qualifying for fast track guarantors plus the reason for using them and lending into retirement for someone with a
underwriting. These computer systems will nullvernment nullal salary pension scheme. nulle even have a lender who has declined many of our
automatically reject any toxic combinations that clients yet struggles to tell us why. The list goes on and on.
the Fnull does not want nullsuch as high loannullonull nullnoring the frustrations that this creates to intermediariesnullyou still have to remember the person
valuenullself certinullation and adverse credit. who suffers the most nullthe applicant.
nullsearch shows that the loan book of Fast null you genuinely want to lend then be more willing to discuss cases to try and overcome
Track cases at least match the performance in concerns. nullt every case will null but some of the objections that we have had have been
terms of arrears of loans that are arranged full overcome through our dogged perseverance.
status. null is time to open up dialogue with brokers so that we are once again working together for the
okers need to do their bit and maintain thatnull benenull of the client and treating them fairly.
these are not self certinullation loans and the
lender reserves the right to ask for proof of David Shenullard, managing director, nullrcenullion Finance
income on any application it sees null. null fact
most fast track lenders will audit a selection of any other way. They offered a knowledge base that the knowledge accumulated over many
cases to ensure that the system is not being to help brokers provide well researched choices years about what works best to bring product
abused. to their clientsnullnot only mortgages but to other provider and broker together is still as important
nullfor one support nullcky nulleynulls campaign to nullest of breednullservices. as ever.
continue with the Fast Track process as it really nullell guess whatnullFast forward to today The main difference between old school
does speed up the mortgage process for high and although some say the physical task packagers and todaynulls specialist distribution
quality low risk business. nullill being able to wow of collecting and collating paperwork null nullms like nullnull is the emphasis we place on
clients with a slick service is the one edge we nullackagingnullnullis less importantnullthose technology as the principal conduit by which
have as brokers over direct and long may it companies that weathered the storm are services and products can be accessed and
continue providing a vital in depth servicenullbut delivered monitored through to completion. nullith lenders
in a more cost efnullient and accessible way beginning to look again at effective distributionnull
Mark Wadmore, senior consultant which benenulls broker and product provider third party specialistsnullwith wide intermediary
Chartwell Funding Limited to suit the changed marketplace. nulldging by coverage and technologically tuned in to both
the response we are having from brokers and lender and brokernullrepresent great value for
Packanullrs arnullnullt F nullnullhnullD providers (present and future)nullthey appreciate both lender and introducernullsaving cost on both
Sir, what a specialist distribution company can offernull resource and infrastructure.
particularly when it is properly fundednullor part of
Before the idea gains any credibility, null must respond an organisation prepared to invest in the future Ian Balfour, CEO, Solent Mortgage
to uninformed remarks suggesting that packagers with infrastructure and technology. Services
are nullished and have no place in the post credit nullturallynullspecialist distributors will only add
nulltters to the editor are welcome and may be
crunch market. value if the market chooses to vote with its
edited for publication. nullite to the address on
nullckagers were originally there to offer access feet by using our services. nullt the growing
page null or email nianullhepublishinggroup.co.uk
to lenders and products that were not available number of intermediaries using us suggests
mortgage introducer nullrch nullnull
null
MI p19_0310.indd 1 23/02/2010 10:59
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