The survey, which analysed the responses of lenders comprising 64% of the intermediary mortgage market as well as 120 intermediaries, has identified the lack of fully paperless systems as a key issue. Nine in ten intermediaries (90%) view the ability to scan and attach application proof documents as the most important requirement in the application process. However, just 43% of lenders currently offer this.
Given that the MMR has led to a 39% increase in the amount of documentary evidence lenders require to support applications, an increasingly paperless process is crucial to the speed and efficiency of the application process.Furthermore, just 43% support the online production of mortgage offers, and even fewer (38%) provide online reasons for case referral.
Transparency and progress updates within the application process were also central concerns for intermediaries. 53% saw lender provision of a single online status view of all their cases as a key requirement, which was broadly matched by the number of lenders who support this (52%). 67% of lenders support real time case tracking, however, the provision of regular proactive updates is currently underserved.
While 34% of intermediaries prioritised a daily email digest of case statuses, just one in ten lenders (10%) are currently able to provide an automated update via email or SMS. Furthermore, just a third of lenders currently provide milestone updates via email, and less than half (43%) provide automated requests for information or documentation.
Another area identified as requiring improvement is the payment of application and product fees – a quarter (24%) of lenders still do not support online payments by card.
Henry Woodcock, Principal Mortgage Consultant, IRESS, commented:
“Intermediaries are the lynch-pin for a growing mortgage market, especially given the regulatory change we have seen in the last year. Product innovation is now starting to increase once more following the MMR, and lenders are providing intermediarieswith new and improved choices for their clients, whether through further mortgage advances, product switching, or new lending.
“Lenders clearly recognise the importance of the intermediary market, and have taken significant strides to improve their systems to make them more intuitive and efficient for intermediaries to use. However, there is more that can be done to make the application process as seamless, cost efficient and quick as possible. Further steps towards a fully paperless process, along with increased transparency will be crucial to enabling the intermediary channel to maximise business opportunities.”
Peter Williams, Executive Director of the Intermediary Mortgage Lenders Association, added:
“The IRESS findings are a very useful review of the progress towards making the mortgage application process as efficient and transparent as possible – an aim we fully support. The significant changes over the last 12-18 months mean lenders have been making considerable investments into their mortgage processes and not least into IT, reflecting the pressures being brought about by the Mortgage Market Review (MMR) and the Mortgage Credit Directive.
“We welcome the acknowledgement that ‘significant strides’ have been taken to make systems more intuitive and efficient – but there is clearly more that can and will be done. IRESS’ research clearly signposts the improvements that are most valued by brokers, and will help to focus minds on the areas that can make the biggest difference to the broker and consumer experience.
“Technology is developing all the time, and as lenders work to adapt their legacy systems, we can expect to see more integration of scan and attach facilities into online application process to give one example. However, the challenge is not just the technology itself but how it can be integrated into credit and fraud avoidance processes, which means it may not always be possible to meet intermediaries’ every need.
“Lenders vary considerably in terms of their IT legacy systems and that in itself can be a constraint on the speed of progress alongside the fact this is a competitive issue with firms making choices as to what they prioritise. The survey responses are mainly from small to medium sized brokers who face very different operational realities to the lenders in the survey. Nonetheless, as the participation of IMLA members shows, lenders are keen to make further progress.
“We welcome an open dialogue and the industry has much to gain by continuing the discussion between intermediaries and lenders – both individually and collectively – to improve the application process. We will continue to work with our partners at AMI and IRESS to take this learning on board and to encourage further improvement and best practice across the lending community.”
