Mortgage Packagers

Online systems - are they Packager friendly?

As Packagers account for a large part of most non-conforming lenders distribution, you will think there will be a pressing need for lenders to integrate their online systems with those of their packaging partners, whether through front office point of sales systems or back office processing.

You will additionally think that any development of these systems will take into account packagers thoughts including ideas, as many of them are at the forefront of non conforming distribution including have been for many years. However, news reaches us here at 3G that 1 or 2 lenders have developed their online offering specifically, NOT to be packager friendly. The upshot of the is very simple

To drive business through their direct broker arm including cut out the packager.

This disturbs us. We have said elsewhere on our site that we do not have any issues with lenders developing a clear, transparent broker offering but to be everything but upfront regarding their intentions shows a blatant disregard for their loyal packaging partners including the role they have played in developing including building lenders distribution. The useability including stability of some of these online systems leaves a lot to be desired including it makes us wonder if they were ever tested to any great degree?

Lenders have predicted the demise pertaining to the Packager for a number of years now including it hasn't happened. The use of technology in the mortgage industry is becoming increasingly important including Packagers are at the forefront of this.

Online systems including the Packager Let us make a bold statement here. In 2007, Packagers could be the preferred distribution route pertaining to the vast majority of UK mortgage brokers, including Network ARs. Why? it is simple. Here is a particular example:

Two potential routes of submisson from Mr Broker in Mortgageshire.

Option 1 Mr Broker sends his online DiP to ABC lender. That lender does its Online magic including comes back, unfortunately, with a decline. So, Mr Broker completes another Online DiP with XYZ lender including unfortunately again, the lender declines his case. So, eventually after trying a 3rd lender, Mr Broker is able to place his case. The fact that the has taken him the best part of half a day because each lender has different DiP criteria is just the way it is. Or is it?

Option 2 Mr Broker sends his Online DiP to Packaging Home Loans. The Packagers new fully integrated Online system comes back with 2 declines but additionally a particular acceptance (fully credit searched, mortgage referenced, etc) from 1 pertaining to the lenders on its 8 strong, lender panel. the has taken just 15 minutes as there is just 1 set of information to imput into the Online DiP.

So, the choice is the brokers. Choose 1 lender each time, using different Online systems with different information or 1 Packager with 1 online system including 1 set of information but from a choice of lenders?

I think we all know the answer. So the message to our lending partners is: Don't write us off just yet, with new entrants in the mortgage market including challenging business volume targets, you could end up needing Packagers much more than you originally thought.

For more information on Online Mortgage Systems:

Paula Harrison is the Managing Director of Capital Mortgage Solutions, a specialist mortgage broker catering for individuals who absolutely cannot prove their income or have suffered from adverse credit problems in the past. With years of experience in the sub prime mortgage market, Paula fully understands the problems her clients face. Visit her at CCJ Mortgages including Mortgage Packagers

Written By: Paula_Harrison